Plan well before you subscribe to old students unions

Elias Obwocha is a middle-level manager in a city firm and strongly supports old students associations. He often contributes money to many noble causes at the behest of the leaders of his primary and secondary schools’ old students societies. However, a recent development has made him think twice.

Obwocha is disappointed with one leader who, early this year, duped him alongside other old students into joining a project that has proved too costly for him.

“The leader fired us up, saying that with devolution, we were staring at a grand opportunity to lead. We did not know what was in store for us at that point,” he says.

“Each of us was asked to donate Sh5,000 to the leader’s social programmes and became automatic members of his think tank,” says Obwocha.

On that first meeting, speaker after speaker talked of the many opportunities devolution had in store for the youth and the listeners glowed in excitement.

“I went home happy, believing that finally our prayers had been answered. Little did I know that this could cost me a fortune and I would have nothing to show for it after all,” he says.

He says even though he has maintained contacts with his former school mates, he feels financially drained.

“Our meetings are held in hotels and what this means is that you spend money buying food and drinks,” he says.

A typical bill for a meal and drinks run to at least Sh2,000 per member, he says. Ten meetings after the inception of the group, Obwocha added the figures and realised he had spent more than Sh50,000 on food and fuel costs.

This realisation was a wake-up call for him.

“After staring at the figures in disbelief, I started missing the meetings, only attending those held in church halls, which were quite few,” he says.

As for contributions, Obwocha thinks he has given enough and is now firmly back to pursuing his personal financial goals.

Membership to old students associations and other development-related outfits can be costly if one does not exercise monetary caution.

Personal finance experts say it is good to scrutinise one’s interests in all ventures undertaken under the patronage of old students associations lest they end up losing their hard-earned cash.

The rule of thumb is to critically question the motive and urgency of those pushing for the projects and to look at what is in it for you as a contributor of resources.

Carolyne Kawira, a personal banker who works for a financial institution, says that like a family reunion, one should approach old students associations with a clear head.

“The reasons for meeting and where and how members get to and from the venues are important to consider if old students associations are to take off,” Kawira says. “I was a member of one old students association but quit after analysing the hidden costs of their numerous meetings.

“The venue in all instances was our old school, which implied driving a considerable distance from my workplace. The cost of fuel was prohibitive,” she adds.

She says some old students who did not own vehicles would hire self-drive cars to ‘help’ them fit in with their more accomplished classmates in what ended up being a vanity show.

“When any of the old girls wanted to make a personal statement like inviting members to a private event, she would appear in expensive clothes for the occasion, pushing the costs further up,” says Kawira.

She ditched the association when the costs of attending the meetings became unbearable.

“My employer transferred me to a different town and it became impossible to attend. That was a good excuse for me to abandon the whole facade,” she says.

She says it is good to have firm rules of engagement and clear goals in old students associations so that private and costly sideshows, such as impromptu fundraisers, are not sneaked in.

“Old students association leaders should explore ways of cutting costs like starting local chapters of their unions in several regions where members can meet instead of having grand events at one permanent venue,” she says.

Contact can be made in less expensive ways such as via social media. And funds for specified projects can be deposited directly into a bank account without members having to physically meet to give money.

Old student forums can be a great way to make business contacts besides gleaning invaluable investment tips.

Indeed, one’s appearance at a few of them could be just what one needs to turn around a flagging business, land a better job, get professional insights or get a waterproof retirement plan. And all these could enhance one’s journey to one’s ultimate financial freedom.

But you must ensure you do not end up spending all your resources in your efforts to get there.