Prosper Groups

Coming Soon

The Background

Our partners aim to work together and reduce working poverty by 5% in just 3 years. Imagine, almost half of the people around here work part-time or only for part of the year. Even though it might sound like they make enough money, usually between $18 and $25 an hour, this only covers basic needs, like rent, food, cellphone, clothing, etc. There's almost nothing left for saving up in case something unexpected happens or for when they're older and not working.

The Prosper Groups project is a big deal because we have a lot of proof showing it works. Studies keep showing that when people team up and help each other with money, especially individuals making at or just above minimum wage, it makes a big difference. These groups aren't just about saving money, they're about friends supporting each other and learning how to manage and invest money. People who join these groups are more likely to save money regularly, be ready for emergencies, and know how to make smart money choices. Plus, when these groups put their money together for investments, they can help everyone have more money in the future and invest in their future. The facts show that Prosper Groups can really help cut down on money problems, build up financial strength, and create positive changes that stick around in our communities.

Not convinced? Imagine if instead of people having to rely on a broken Provincial social assistance system in tough spots, we as neighbours can work together to build assets for each other to keep us all afloat. This puts money back in all our pockets, and our entire community is better for it.

The Idea

Picture this: groups of 5 people working together to take $5,000 and turn it into $6,000 or more, each getting a cut at the end of the year. Talk about a real financial boost! Plus, all the while each group is creating long-lasting friendships and skills along the way. Everyone gets to share in the success.

Prosper Groups will consist of 5 members. Each group is given $5,000 in a trust to get started. The money is kept safe in a trust by a local bank, and a financial advisor is paired with the group to talk savings, investments, and building assets. Meeting up 1-2 times a month, the groups become like a close-knit team, helping each other through financial ups and downs and keeping an eye on their investments.

But here's the cool part: if a member needs a loan, the group has their back. Everyone pitches in to support the loanee to repay their loan back on time. It's all about neighbors working together to make everyone's financial situation better. When the pilot wraps up, each member receives a portion of final total - if the group went from $5,000 to $6,000 without taking anything out or adding anything, each member would take home $1,200 ($1,000 initial + $200 returns).

Prosper Groups isn't just a project – it's a way for folks to team up and build a stronger financial future, together.