How Does a Tanda Work?


Author: Luis Cervera

People have used Tandas for hundreds of years as a structured way to access cash or save for a goal.

It’s a tool that has been handed down for generations and is used by cultures around the world. And if you’re like me, you probably remember them as a little boy or girl when our parents would take part in a Tanda (we call them Cundinas) with family and friends as a way to plan for something… money for the holidays, a family trip, or a down payment on a car.

Whatever the reason may be, Tandas have always been what our families have counted on for reaching their short-term financial goals.

How Does a Traditional Tanda Work?

Don’t remember how a traditional Tanda works? Here’s an example…

Ten people agree to meet every payday (every 2 weeks) and each of them contributes $100. This $1,000 pile of money then goes to the first member of the group, who can use it for anything they need.

The next payday, the same group meets again and they each contribute another $100, which goes to the next person in the group. This continues every payday until each person receives his or her $1,000 payout.

For the members who received their payouts early, they used the Tanda as a way to borrow.  The members in the middle spots used it as a way to plan for a special event like a vacation or anniversary, and the group members who received their $1,000 at the end used the Tanda as the perfect way to save.

A Tanda Helps you Save for Goals

Why is that important? Because saving money is hard! Studies show that only 5% of Americans are able to save money regularly and its because with our busy lives there are always expenses that pop up… school supplies for the kids, a sudden car repair or maybe even a leaky roof. Before we know it the money we had set aside for our next project is gone.

The National Bureau of Economic Research did a study and found that

“…saving in a group more than triples your chances of saving money”.

That’s the reason that Tandas work so well. By working in a group, we are forced into a commitment where others are counting on us, which gives us just the right amount of motivation to stick to the plan. The idea of  “I want to save” becomes “I HAVE to save” and before you know it you’ve reached your savings goal and are off enjoying the first special family trip you’ve taken in years.

eMoneyPool’s Improvements on the Tanda

Now there is a service available to everyone, which brings the Tanda to the 21stCentury. is an online community that connects people together to reach their short-term savings goals.  It’s a modern Tanda where anyone can join in less than 5 minutes on his or her PC, tablet or smartphone. The entire process is guaranteed which means that if someone in your group stops paying for any reason, eMoneyPool takes their place to protect the group. And as you make more payments on time, your reputation rating goes up, which gives you access to earlier spots and larger pool amounts.

With traditional Tandas, you could only participate when your close groups of friends and family were willing to participate (maybe once a year) and it required you to run around to meet with them every few weeks to exchange money.

eMoneyPool offers a money pool marketplace where you can take part in a pool anytime with people from across the country so you can be sure that there will always be a pool available that works best for you. And the money exchanges? They’re all done automatically through your bank account so it’s worry-free.

eMoneyPool will even send you a reminder the day before your next payment is due to help you stay on track.


There are other great benefits too. When you complete a money pool and make 10 payments on time, you can request a certificate of completion, which is accepted by our lender partners. They will use that certificate as proof of your creditworthiness that could help qualify you for an introductory loan.

So using eMoneyPool will not only help you save for that next big purchase but could also help you take the first steps toward building or repairing your credit.

Next time you have a savings goal in mind and you want to virtually guarantee you’ll reach it; eMoneyPool could be the solution for you.