Merry-go-round rules template (copy and adapt for your group)

Most merry-go-rounds that fall apart don't fail because of dishonest people — they fail because nobody agreed what would happen when something went wrong. This template covers the situations that actually come up. Copy it into your group chat or a shared document, fill in the blanks, and ask every member to reply "agreed".

#The template

[Group name] merry-go-round rules

1. Members. This circle has [number] members: [list names]. New members can only join at the start of a new circle.

2. Contribution. Each member pays [amount] every [week / two weeks / month].

3. Deadline. Contributions are due by [time] on [day]. Payments go directly to that round's recipient by [mobile money / bank transfer], and the payer posts the transaction reference in the group chat.

4. Payout order. The order was decided by [random draw on date / agreement] and is shared in the group calendar. It will not change except by an agreed swap (rule 7).

5. Late payment. A payment after the deadline incurs a late fee of [amount], paid to the recipient of that round. A payment more than [number] days late is treated as missed.

6. Missed payments and default. If a member misses [number] payments in a row:

• a member who has not yet received the pot loses their turn and gets back what they paid in, minus any late fees, at the end of the circle;
• a member who has already received the pot must repay the remaining contributions they owe. Their guarantor, [name], agrees to cover any amount not repaid within [number] weeks.

7. Swaps. Two members may swap turns if both agree in the group chat. The organiser updates the calendar.

8. Emergencies. In a genuine emergency the group may agree, by majority, to move a member's turn earlier.

9. Leaving. A member who wants to leave must give [number] weeks' notice and cannot leave in the rounds immediately after receiving the pot.

10. Organiser. [Name] keeps the record of payments and sends reminders. The record is visible to all members.

11. Disputes. Disputes are settled by a majority vote of members, excluding those involved.

#Filling in the blanks well

• Amount: choose what every member can pay in their worst month.
• Deadline: give a clear time, not just a day. "Friday" causes arguments; "Friday 6 pm" doesn't.
• Late fee: small enough to be paid without resentment, big enough to matter — often 5–10% of the contribution.
• Guarantors: most important for anyone in the first third of the order. See when a member doesn't pay.
• Order: we recommend a recorded random draw — see how to decide the payout order fairly.

#Common gaps in homemade rules

Groups that write their own rules usually cover the amount and the order, and forget:

• what counts as late (a day, a time);
• what happens to someone who leaves after receiving the pot;
• whether swaps are allowed;
• who keeps the record, and who can see it.

The template above covers all four.

#Make the rules easy to follow

Rules only work if everyone can see where they stand. Share one calendar showing the order and dates, and tick off payments as they arrive. AwaFund's free merry-go-round planner does both: spin for the order, then share a link where the organiser can mark who's paid and send WhatsApp reminders to anyone who hasn't.

Frequently asked questions

Do we need written rules for a small merry-go-round?

Yes. Even for five friends, one page of agreed rules prevents almost every argument. Most disputes come from things nobody discussed in advance.

Should late payments have a penalty?

A small, automatic penalty works better than case-by-case judgement. It keeps things fair without anyone having to be the bad guy.

This guide is general information to help groups organise themselves. It isn't financial, tax or legal advice — rules for savings groups differ by country, so check with a qualified adviser for your situation.