Unlike Arisan, S4T Brings Prosperity
Household resilience is very important because it relates to the family's ability to survive and overcome various challenges, crises, and changes in daily life. Good financial management is one of the things that determine household resilience. This is what prompted WVI's operational office in Sekadau District, West Kalimantan to conduct Household Economic Management Training and Formation of Saving for Transformation (S4T) Group in one of the assisted villages.
Alex, who works as a farmer in the village, was very enthusiastic about this S4T activity. Together with eight other villagers, he formed an S4T group. Prior to this activity, he had participated in various kinds of arisan*, but according to him, S4T is not the same as arisan. "In the past, I often joined arisan in this village. When we got the money from arisan, we spent a lot of money on food and drinks for the arisan members. So we were left with a little money in the end. In S4T, there is no large expense for food and drink. Instead, our savings increase and we can loan at a small interest rate that we all agree on," says the father of two.
Similar to a credit union, S4T’s savings and loan system benefits both saving and borrowing customers. With no location restrictions, S4T can be done anywhere. The rules of S4T can also be adjusted to the context of each group. But above all, the goal of S4T should not change: to save for children's well being and increase household resilience.
Being involved in S4T and learning about Household Economic Management has had a positive impact on Alex and his family. "I now have a better understanding of what to spend and what not to spend. My fellow S4T members and I have also changed our views on saving money. Many of us previously had no savings at all. Now we all have savings. It started with one share in S4T. That was our first step and now our savings are getting bigger," says Alex, who is also the head of the S4T group in the village.
In addition to developing a good habit of saving, Alex also realised the importance of increasing his sources of income, not just relying on agricultural produce. Alex ventured to borrow business capital from S4T to open a small kiosk in front of his house. Now Alex can earn additional income from selling food and clothes.
"S4T has had a positive impact on my family's economy and also on my children. Because of S4T, my children can have adequate school supplies. I can buy school fees, books, bags and pens with my savings from S4T. They don't have to fear dropping out of school. My small business has also had a good impact. The clothes I sell can increase our income," he said.
With the positive benefits of S4T, Alex hopes and is committed to continuing his group's savings activities. "This is a good thing because it changes our view on managing money. In addition, the kinship between us has been strengthened because of this group. We agreed to allocate social funds for sick members," Alex concluded.
*few people collect the same amount of money every month and taking turns who will get all the money every month. Similar to savings, but without any interest and no chance on getting loan.
Author: Herna Sinulingga (Coordinator at Sekadau Area Program)
Editor: Mariana Kurniawati (Communication Executive)
