Many Hispanics have grown up in families where their first generation Hispanic parents informally saved and borrowed money from others in the community through what is known in Mexico and Central America as a tanda - sometimes also referred to as a cundina.

 

This is a cooperative practice Latin Americans have brought to their new U.S. communities, which is similar to the concept of a credit union. 
 
Tandas allow community members to save, borrow and learn basic financial concepts in a small group without having to go to a traditional financial institution. Tandas are often started by close friends, families and even co-workers.
 
In a tanda, a group ranging from 10 to 15 people agree to pool a certain amount of money for a specified period of time. Each member of the group receives a payout from the pool of money throughout the allotted period of time.

For example, a group of 10 people would each contribute $100 each week for 10 weeks. Whoever organizes the tanda usually handles the collection and distribution of the money. Then, the organizer might draw names to determine when each group member receives his or her payout. After the name is drawn,the person will get $1,000 paid out to them after the first week.

 

They essentially receive an interest free loan for which they will continue to contribute $100 for the remaining 9 weeks. If someone draws their name toward the end of the 10 week period, then they have been essentially using the tanda as a savings tool. Everyone is expected to make their contributions on time which helps institute financial discipline. 

 Purchase now for only $300