There’s clubs for almost everything under the sun already; Weight Watchers, support groups of all varieties, hobbyists, and organizations (Boy Scouts, VFW Legionnaires). So why not start or join a Money Club?

Put the Pieces Together

All you need to do is either locate an existing club to join or form your own group. Get the word out to your friends that you’re starting a Money club and that they are invited. Remember though, a Money club isn’t necessarily an Investing club (though you can move it to that later if you like). With a Money club, you talk about financial subjects that interest the group. Unlike an Investment club, there is no actual money involved.

Once you get a group together, hold a meeting and get suggestions for a list of topics and books to talk about. Having a list of upcoming material is VITAL for keeping the club going. Some topics may not interest everyone, but if they see a topic coming they ARE interested in, they’ll stay for that.

Next, post a schedule (calendar, list, napkin, whatever) of the subjects and have each person select one they want to talk on. Group participation is important, and gives everyone the opportunity to be an expert on their own topic. It also encourages outside study in preparation for the presentation.

Then agree on a comfortable meeting place away from family, friends, and the public (a coffee shop or library are good possibilities). A quiet place is preferable, but somewhere that you can talk and take notes is ideal.

Each meeting should be a low-stress, friendly atmosphere for discovering and talking about different financial subjects. It may be a bit difficult until you get everyone used to the meetings, because money is one of those ‘taboo’ subjects that most people have been taught NOT to talk about. Encourage others in the group to ask questions and participate. No question is stupid and everyone has something to contribute. You might be amazed by what Meg down in shipping may know about ETF funds and their benefits and drawbacks, or Tom, Becky’s husband, knows about Straddle Options.

Optional Next Steps

Once your little group has been going awhile and is comfortable with each other, you might broach the subject of introducing personal questions/issues. Sometimes people with financial problems need to talk them out with others just as much as mental and emotional problems. Your ’study group’ can also double as a ’support group’. There’s strength in numbers, and the more brainpower you have, the better solutions you can come up with.

Another possibility is to have guest-speakers come in. Local personal finance people would probably be happy to visit and give brief guest discussions on topics.

You can also talk about moving the Money club to an Investment club status. Starting slow, you might suggest putting some money into a pool to try out some of the money and investment tactics you’ve been discussing. If you DO go this route, make sure you get a couple of things clear.

• Buy in – Set a reasonable rate of entry into the pool. Don’t make it so high that some people feel it’s going to adversely affect their own investments, but make it significant enough that you feel it’s more than ‘play money’
• Buy out – At some point, people will leave. Have a pre-set formula or method for cashing them out.
• Distribution Structure – As people that have invested for a long time SHOULD get more than those that have invested recently (unless they contributed more), have a pre-set formula or method for equally distributing dividends and earnings. MAKE IT AS VISIBLE AS POSSIBLE. Remember the reasoning for the club is to socialize and learn about money, it shouldn’t primarily be about making money.
• Legal Support – Have all of your methods/formulas/agreements checked over by a lawyer so that they conform and are legally correct for your state. That way, no one can say that the rules are unfair.

Money clubs can be a source of social outlet, education, and enjoyment for people, while still providing knowledge about financial matters. By controlling/growing your own money, and sharing your knowledge and time, you can help others while also strengthening your community.

Photo by Oskay