T13 - 3

Question 1

What is a stokvel?

Answer 1

People of a community come together and put there money together.

Question 2

Why do some people prefer to invest in stokvels rather than banks?

Answer 2

1. They do not trust banks
2. They prefer a more traditional way

Question 3

Give 4 advantages of stokvels.

Answer 3

1. Even if you do not have a bank account you can still save money and earn a return.
2. It is convenient as you do not have to visit a bank.
3. Do not have to pay bank charges.
4. The money is available if it is needed for a funeral.

Question 4

Give 1 disadvantage of stokvels.

Answer 4

The money is not earning interest if it is not deposited into a bank account.