Kitty party money: how a kitty party pot works, and how to keep the record
A kitty party is a regular gathering of women, common in cities across India and Pakistan, where members meet each month and each contributes to a shared kitty. In many kitty parties the kitty is passed to one member each month, so the group works like a rotating savings club. Some kitty parties also have games, food, and a theme for each meeting.
Because the kitty party is partly social, it is common for money to be handled loosely. The pot may go to one member, a shared fund may be kept by the host, or each person may take turns hosting and collecting. The money side is what this guide is about, because that is where disagreements begin.
How does the kitty money work?
- The members agree the monthly contribution, the day of the meeting, and how many months the kitty will run.
- Each member pays in at every meeting. The total collected is the kitty for that month.
- The kitty goes to one member, chosen by a draw or by agreement, and that member is not picked again until everyone has had a turn.
- When everyone has received the kitty once, the group can finish or start a new cycle.
In some groups the kitty is not paid out at all. Money is pooled for a shared purpose, such as a trip or a gift, and divided at the end. That is a different arrangement, and the rules should say so clearly from the start.
Is a kitty party the same as a chit fund or a bhishi?
A kitty party can run exactly like a bhishi, with a fixed amount and a turn for each member. It is not a registered chit fund, which is a regulated business under the Chit Funds Act, 1982, and where turns are often decided by auction.
The difference is in the rules. A kitty party with a fixed contribution and a clear order is a rotating savings group. A party where the host holds the money, members pay different amounts, or the kitty is used for anything other than the agreed pot, needs more structure. Write the rules down before the first meeting.
What goes wrong with kitty money?
- A member stops paying after taking the kitty. The members who are still waiting lose out, and in a close social group, it is hard to ask for the money back.
- Missed payments at meetings. A member who is absent may pay later, or forget. Without a dated record, the host has to rely on memory.
- Cash kept by the host. When one person holds all the cash, questions about how much came in and where it went can damage friendships.
- Unclear rules. When nobody agreed whether the kitty is a pot to be taken or a shared fund, members will remember it differently.
How do you keep kitty money records with Savings Circle?
- Create the group. Choose “Kitty” as the name type if your group uses that word, or “Committee” if you run it as a rotating pot. Set the currency (Indian rupee and Pakistani rupee are both supported) and what each member pays per round.
- Add members from your contacts. They don’t need to install anything.
- Set the order. Run a random draw in front of everyone, or enter the order you agreed. A random draw saves its seed, so anyone can check later that it was not changed.
- Record payments as members pay at each meeting, by cash, bank or mobile wallet, with a screenshot as proof if you like. It works offline, which suits a meeting in a house with weak signal.
- Remind the late ones. One tap opens WhatsApp, SMS or Telegram with a polite message ready to send.
- Record each payout. Every entry is dated. A correction is added as a new entry, and the original stays in the history.
Savings Circle never holds or moves money. Members pay the host the way they already do; the app keeps the shared record of who paid, who is next and what is owed.
Other names for the same idea
A kitty party pot is a kameti or committee in Pakistan, a bhishi in Maharashtra and a chit fund or kuri in other parts of India. Around the world the same system is a tanda in Mexico, a susu in Ghana, a chama in Kenya, an arisan in Indonesia and a paluwagan in the Philippines. Economists call all of these rotating savings and credit associations, or ROSCAs.
Guides
- South Asia: committee, kameti, chit fund, bhishi, kitty party and samity
- Africa: susu, chama, ajo, adashe, equb, hagbad, stokvel, tontine, mukando and chilimba
- The Americas and the Caribbean: sou-sou, tanda, junta, lending circle and pardner
- Asia and the Pacific: arisan, paluwagan and hụi
- The Arab world: jam’iya