User:Tandas

Tandas

Tandas are system of financial stability for Latinos in the United States and Latin America. They originated in Southern Mexico and it is a system that is largely organized by women. It provides a form of financial as well as emotional stability for women. It is a collective pool of money in which people receive the pool on a set date. It has transculturated through organizations affiliated with banks in the United States

Origins

There is some debate concerning the origins of Tandas. The concept of “rotating credit association” on which the Tanda is based is believed to have originated in China, and is known as the hui. ( The hui refers to a system of rotating credit association which Chinese immigrants established in Mexico. However, the modern Tanda is believed to have originated in Southern Mexico, particularly in the states of Puebla and Oaxaca.

Financial Significance

Tandas become a form of savings account for many immigrant living in the U.S. because most immigrants are afraid of getting bank accounts from fear of deportation because of their undocumented status. Bank of America began to work with the Mexican consulate in 1999 to open up bank accounts for migrants regardless of legal status in the United States many feared an eventual backslash and refrained from participation. Depending on how many people are involved in the Tanda is how the money is distributed weekly or monthly. For those people who do have a bank account and are in debt they have used the tandas as a way to pay out debt from the bank by just using the whole tanda to give to the bank when it comes to their turn to receive it.

Emotional Significance

Tandas provide a method for Mexican immigrants in the United States to have financial support, however what is unique about Tandas is the emotional aspects of it. Authors such as Lourdes Gutiérrez Nájera, Rosalba Gama, and Delma and Luis Medrano have researched this emotional phenomenon that exists within Tandas. In her article Hayandose, Gutiérrez- Nájera describes Tandas as “gendered spaces of belonging” since the vast majority of Tanda participants tend to be women. Tandas provide a space for women to interact with each other and be with their own (meaning women of the same ethnic background, financial situation, etc). When surveying Tanda participants’ scholars have found that for the women participating in the Tandas, the weekly day set aside for the Tanda was the only social interaction many of these women experienced all week. Surveys of Tanda participants have found that many of the Tanda participants are undocumented workers who often have more than one job in order to make ends meet and support their families. Much of their day is spent working, commuting and caring for their families, leaving no time for any social interaction. Tandas provide a day and space for these women to interact with friends and catch up on the latest news and gossip. In essence they provide what Gutiérrez Nájera refers to “spaces of belonging” which is why Tandas are such important social enclaves and persist throughout time. In addition this sense of belonging is why many people participate in Tandas as opposed to banks despite having the proper documentation required to enroll in a bank.

How it works

Organizing a group of trustworthy people creates tandas. There has to be a collector who organizes weekly meetings for people to deposit their money in a specific location. Depending on the amount of people who are involved determines how often the money will go around to each person. If there is a tanda of ten people then every ten weeks you will be receiving your money. If there is any unfortunate event that happens to someone in the group then the people involved in the tanda organize each other to create a way to give that person their money in order to help them when they are in need and create a new formatted cycle for the money to go around. Tandas are an invitation-only organization in between a group of people who trust each other in order to make the tanda work.

Transculturation of tandas in the U.S.

In San Francisco, California there is an organization called Mission Asset Fund in the Mission District, which has adapted a program called lending circles that is originated from tandas. Documented people who want to build credit but are not aware and are more comfortable with tandas have this program that allows them to learn how to get credit from lending circles. The lending circles at MAF allow anyone who wants to get involved to participate in the program.Through a partnership with Citi, the bank processes loan and distribution payments, then records and reports monthly payment activity to credit bureaus. As part of the program, members are required to complete a financial management course, which builds an understanding of financial principles and responsible use of credit. The transculturation of tandas has allowed for organizations to adapt ideas that come from the process of tandas to input in organizations like MAF lending circles in San Francisco.