What is a money pool?

A money pool is one of the world’s oldest savings mechanisms in which each member of the pool contributes the same amount of cash each month for a certain period of time. Each member takes turns to receive the pool amount. Money pools are also called chit funds and rotating savings and credit associations (ROSCAs).

Why should you join a money pool group?

Trusted Financial Community: People form groups with the people they trust, which they can leverage upon in times of contingent needs. Zero Documentation: Absolutely no paperwork is required to loan money from the money pool. Disciplined Saving: Involvement in a money pool group encourages people to set saving goals and meet them.

How much do you contribute to a money pool?

So, 10 people might contribute $100 each month to a money pool and take turns collecting $1,000 each over 10 months. Many people in Cervera’s Mexican-American community routinely tapped into money pools for larger purchases. “Buying a computer for school, buying my brother’s first car, we always did money pools,” Cervera said.

What is eMoneyPool?

As an adult, Cervera and his brother Luis have revolutionized that practice by taking the money pool concept digital, through eMoneyPool. This online tool facilitates the creation of money pools without the tedium of face-to-face money exchanges like the kind Cervera’s aunt managed in San Diego.