1. Explain how a Stokvel can help a person to save money.

Question

2. Give disadvantages of stokvel.
3. What important points would you consider before you join the stokvel.
4. Explain how grocery cubs can help a person to save money.
5. What is the advantage of joining a funeral Society rather than saving the money in a bank for funeral.
6. Give a disadvantage of a grocery Club
7. Why would you advise someone to use the modern way of saving.
8. Name two financial institutions found in South Africa

Answer in short one sentence for atleast 14 - 15 words

Answer 1

1. A Stokvel promotes group savings, allowing members to pool resources and share financial burdens collectively.

2. Disadvantages of Stokvels include risks of mismanagement, potential for financial loss, and lack of regulation.

3. Before joining a Stokvel, consider the group's reputation, membership rules, and financial management practices.

4. Grocery clubs enable members to purchase in bulk at discounted rates, thereby reducing overall grocery expenses.

5. Joining a funeral society provides predetermined benefits and support during bereavement, avoiding financial strain at the time.

6. A disadvantage of a grocery club may include restrictions on purchasing flexibility and limited item selections.

7. Modern savings methods offer convenience, higher interest rates, and features like mobile banking and online management.

8. Two financial institutions in South Africa are Standard Bank and Absa Bank.