As the festive season begins, many stokvel groups are sharing the savings members worked hard for all year.

While this is an exciting time, it’s also when members need to stay alert and make smart choices to protect their money and make it last.

Read more: Tips to slash expenses in this high-cost-of-living era

According to Cebile Magongo, strategic business manager at FNB Cash Investments, for many households, a stokvel payout is a major financial moment.

“Protect your money and use it in ways that bring value beyond December,” she advised.

7 easy-to-follow tips to stay safe and stretch your stokvel money further this holiday season:

• Keep it digital where possible – Use digital transfers instead of cash withdrawals whenever possible. It’s faster, easier, and much safer than carrying large sums from the bank.
• If you must use cash, plan carefully – Some stokvel members don’t have bank accounts and will need to use cash. If that’s you, plan carefully how you will handle the money. Count it in a secure place, keep it out of sight, and avoid carrying the full amount on you at one time. Having a basic bank account can also help reduce these risks by providing a safe place to store funds instead of carrying large sums in cash.
• Avoid withdrawing at risky times, and don’t take all the cash out at once – “Try not to withdraw money late at night, at quiet ATMs, or around month-end and big holidays,” Magongo said. “These are times when criminals are most active.” And if you must take out cash, split the withdrawals over a few days. Smaller amounts are easier to hide and safer to carry – and if anything goes wrong, the loss is also smaller.

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• Be aware of scams – Even when your money is in the bank, criminals may try to trick you. They may call pretending to be from the bank or send fake messages asking for your PIN or password.
  “A real bank will never ask for these details, so if you are unsure, hang up and call your bank directly.”
• Plan your spending – It’s easy to spend too much when you suddenly get a lot of money. That’s why Magongo urges members to plan before they get their payouts.
  “Before you receive your money, write down what you want to use it for. Even a simple plan like ‘save some, pay debt, buy what I need, then enjoy a little’ can help you avoid wasteful spending.”
• Use festive sales wisely – Specials and discounts can help you stretch your money, but only if you buy things you actually need. Compare prices, avoid impulse buying, and don’t spend just because something is cheap.
• Work together to save even more – You are a stokvel member because you know that working together can help grow your money. The same is true of spending it. Joining up with other members to buy in bulk and share can save everyone money.

“Your stokvel savings are the result of discipline and teamwork throughout the year. Be sure to protect them, use them wisely, and let your money go further than just December. Even small spending changes can make a big difference in the new year.”

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