How to start a pardner

Before you start

A pardner only works if every person keeps paying after their own turn has passed. So start with who you’d lend money to, because that’s close to what each early member is asking of the group. If you’re new to it, read what a pardner is first.

How to set one up

1. Choose the people.
2. Agree the amount and how often you pay.
3. Decide who handles the money.
4. Set the order of turns.
5. Write the rules down and get everyone to agree.
6. Share the dates, then collect the first round.

1. Choose the people

Pick people you know, or people someone you trust can vouch for. Be careful with a friend of a friend who wants an early turn. Keep the group small for your first one, because every extra person makes the pardner run for longer.

2. Agree the amount and how often you pay

Pick an amount the person with the tightest budget can still pay in a bad month. Pay on a date that suits the group, such as the day after most people get paid.

Everyone’s pot is the amount multiplied by the number of people, and the pardner lasts one round per person.

Museumand records some members holding two hands, which means paying twice as much and taking two pots.

3. Decide who handles the money

A banker

The traditional way. One trusted person collects from everyone and pays out the pot. It’s simple for members, but all the money passes through one person.

Paying directly

Each member sends their money straight to the person whose turn it is. Nobody holds the pot, so someone still needs to keep track of who has paid.

Whichever you choose, keep the pardner money apart from anyone’s own spending, and pay by bank transfer where you can so there’s a record.

4. Set the order of turns

An early turn works like an interest-free loan, so people often want one. You can settle it in a few ways:

• Draw names, which is hard to argue with.
• Agree it together, so someone with a big bill coming can go before it’s due.
• Let the banker decide, if the group trusts them with that.

You could put the organiser last, or give the first turns to the people you’ve known longest. Both reduce the damage if someone stops paying after taking their pot. Our free rota and pot calculator can draw the order and work out the dates for you.

5. Write the rules down

Rules that only exist in people’s heads tend to change when money is short. Put these in writing before the first payment, even if it’s only a message in the group chat that everyone replies to:

• The amount, the payment date and the last time a payment can arrive.
• The order of turns, and whether two people can swap.
• Who collects the money, and how members pay.
• What happens if someone pays late, and who tells them.
• That everyone keeps paying after their own turn.
• What happens if someone has to leave.
• Who is in the group, with their full names and phone numbers.

6. Share the dates and collect the first round

Send everyone the full list of dates, so nobody has to ask when their turn is. After each round, send a short message to say it’s complete and who got the pot.

What to know before you begin

MoneyHelper says these schemes aren’t regulated by the Financial Conduct Authority or covered by the Financial Services Compensation Scheme, so you may not get your money back if it’s lost. Good rules lower that risk, but they can’t remove it. Only put in money you could cope without. For more, read is a pardner legal and what to do when someone stops paying.

This guide is general information and isn’t legal or financial advice.

Running it on CircleSave

You can set the amount, schedule and order on CircleSave, then share one link with the group. Everyone can see who has paid and whose turn is next, and members get reminders on WhatsApp. Members pay each other directly, so we never hold the money. A circle can have up to 10 people, and we can’t promise everyone will pay.