Reasons you should join a Sacco

Women often face unique hurdles in achieving financial stability, from limited access to credit to cultural misconceptions about money management. But Saccos are emerging as a vital resource, bridging these gaps and empowering women to thrive. Margaret Njeri, a financial advisor and coach, sheds light on the specific benefits Saccos offer women, how to select a suitable Sacco and how to overcome common financial challenges.

How can women benefit from joining a Sacco?

Saccos help women take control of their finances by promoting a saving culture. They can access credit with low interest rates, mortgage loans, education loans, and emergency loans. Saccos hold education days where women can speak with investment advisors. Women can grow businesses, own homes, save and master financial discipline.

What are some of the common misconceptions about Saccos?

The most common misconception is that Saccos will run away with their money. Some women think they need to be wealthy before seeking financial advice, yet this advice is crucial for managing, saving and investing money. Others believe they can self-educate and manage money independently, without an advisor. Furthermore, some think Saccos are only for employed people or that they need their husbands to save for them.

How can women use Saccos to improve their financial stability and independence?

Women need to save consistently and borrow responsibly and strategically, using loans for beneficial purposes like starting a business or obtaining a mortgage. Women should attend Sacco education days to meet with life coaches and financial advisors and to build friendships with other Sacco members. Saccos also assist women small business owners by providing loans.

What challenges do women face when it comes to financial inclusion?

.

Keep Reading

• How to handle parenting in a changing world
• What you need to know before donating blood
• Why dirty thirty is as real as it sounds
• What causes depression and how to tackle it

Many women are unable to access financial advisory services; Saccos can encourage them to attend education days. Regarding asset ownership, Saccos can provide credit facilities. Saccos can also offer business training for women with businesses. Saccos are powerful tools for financial stability. Women who are not Sacco members are missing opportunities to build wealth, grow businesses and secure their future.

What common mistakes do people make when managing their finances?

Most women don’t take financial knowledge seriously; they know how to earn money, but not how to keep or multiply it. They also don’t save consistently. They take loans without clear goals, ignore loan repayment plans and fail to participate in Sacco activities.

How can you pick a good Sacco?

They need to join a Sacco that is regulated by the Saccos Societies Regulatory Authority (SASRA). They should compare interest rates among Saccos, check membership benefits, understand the loan policies of different Saccos and know how to contact the Saccos whether they have physical locations or digital apps and other deals.

What challenges do Saccos face in reaching more women, especially in rural areas?

In rural areas, the lack of digital platforms prevents women from saving with a Sacco. If women cannot access loans, Saccos cannot grow. If Saccos can attract more women, more people will join through them and benefit. Saccos can facilitate training programs in diverse areas like health, business, education and parenting.