You’re not meant to mix business with pleasure, but now that you can do it conveniently, the rules may be changing. Clink, a no-fee savings and investing app, just rolled out a new feature that allows groups of users to save money together. Now you can save for a group trip with friends, split large purchases with family members, and otherwise deal with the sticky situation of asking people (whom you know) for money.
The new group savings feature aims to turn passive saving among family and friends into a routine practice, according to Clink. Simply set a group savings goal and a target date, then invite participants to join in on the money-making venture. Funds are invested into a diversified investment portfolio made up of Exchange Traded Funds, or ETFs, which Clink claims will expedite the saving process. And because there are no commissions or hidden fees involved in the app, what you see is what you get. And what you get might be a family vacation.
So how does each friend or family member determine how much they’re responsible for contributing? As Clink explains it, each member is assigned a proportional amount based on the size of the group. Contributions can either be made on a set schedule from a checking account, or users can send a fixed percentage from their credit card purchases to help reach their segment of the goal. And to make sure that everyone stays on track, Clink will track customers’ progress and send reminders if the saving appears to be stagnant.
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But once the target has been reached, Clink sends out the best group text of all, prompting members to withdraw and spend.
“The group savings feature was designed for our users who want to simplify and add transparency to the process of raising funds between multiple people,” said Eyal Fruchtman, founder and CEO of Clink. “Group savings is able to make the process of saving for important moments – like the next big vacation or even a wedding present – seamless. This is especially useful for long-term goals and can reduce some of the burden associated with putting money away.”