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How does the African Sou Sou work?
An authentic sou-sou is organized by a circle of people looking to save money together, while each member gets an advance on their savings. For example, if five people decide to put in $5 for five weeks, each person would get a chance to spend the total $25.
How do I start a susu?
Here’s how I started a sou-sou to help me make enough money to get my cake-decorating business off the ground.
- Determine How Much Cash You Need to Start Your Business.
- Find Cash in Your Budget and Earn Extra Money.
- Form a Group.
- Choose a Cash Collector.
- Decide on a Reasonable Contribution.
- Propose Accountability.
What is a sou sou pyramid scheme?
In a traditional sou-sou, the members pay a fixed, equal amount of money into a common fund on a weekly, bi-weekly or monthly basis and take turns getting paid out on an agreed-upon schedule. These schemes depend on contributors recruiting new members to keep the money flowing into the fund.
Is the modern day Sou Sou legal?
There are no laws against sou-sous as long as every member gets exactly what they put into it. However, there is little legal recourse in the event someone is taken advantage of.
Is the Sou Sou a pyramid scheme?
If the entity emphasizes recruiting and moneymaking, it is still an illegal pyramid scheme. It doesn’t matter if there is no administrative or central fee. “It is considered inherently deceptive because the nature of the operation means it will be harmful to the majority of people who get involved,” Daffan said.
Is a susu legit?
It’s also the greatest form of “scammery.” That’s why scammers are imitating a type of informal savings club known as a “sou sou” or “susu” to trick people into joining what amounts to an illegal pyramid scheme. This way of saving is based on the honor system, and it is not without risk.
Is a susu a pyramid scheme?
In contrast to traditional susus (in which participants only receive the money they put in without profit), these schemes promise a profit. Additionally, these scheme promise rewards for recruiting more people to the susu, in effect making it a pyramid scheme.
What is a sou sou flower?
SouSou savings scheme is a kind of rotating gifting process, where all the participants go through 4 different positions of the scheme and each member needs to make another two members join the scheme. All these members contribute a certain amount of gift money once during the gifting period.
What is a sou-sou pyramid scheme?
Why are gifting circles illegal?
“Schemes like this are illegal because they’re inherently harmful.” Here’s another reason to avoid this scheme. You could be charged with tax fraud. In 2013, a federal jury found two Connecticut women guilty of tax fraud for running a gifting circle and not paying taxes on their gains.
Is there such a thing as a Susu?
From Wikipedia, the free encyclopedia A susu or sou-sou or asue (also known as a merry-go-round) is a form of rotating savings and credit association, a type of informal savings club arrangement between a small group of people who take turns by “throwing hand”, as the partners call it.
Where does the term Susu come from in Jamaica?
The sus informal accounts used in the Caribbean and among West Indian immigrants to the United States are similar. In the Akan language susu means “plan”. In this context, planning with a group of people to save a certain amount of money. The concept is also known in Jamaica as Paadna Money (Partner Money) or simply as Paadna.
What kind of person is a susu collector?
Not to be confused with the related, but mutual form of Susu as practiced in Ghana, the Caribbean and amongst North American immigrants. Susu collectors are a traditional form of financial intermediaries in Africa, predominantly in Ghana.
What does Susu mean in the Akan language?
In the Akan language susu means “plan”. In this context, planning with a group of people to save a certain amount of money. The concept is also known in Jamaica as Paadna Money (Partner Money) or simply as Paadna.