4 Reasons to Use A Piggy Bank
One of the easiest ways we learn how to save money at a young age is with a piggy bank or some other container to collect our coins and money. So, in an effort to further encourage all of our customers to teach children about money, we wanted to highlight one of the simplest, most convenient ways to save: using a piggy bank.
Most of us at some point in our childhood received a piggy bank. Maybe some of us still use our first piggy banks. It’s one of the most effective ways for parents to teach their children the value of saving money rather than spending it. More importantly, the piggy bank is also a good reminder for parents and young adults who may have forgotten the importance of saving.
Here are four reasons why every person, young or old, should be using a piggy bank:
1. A piggy bank helps us organize loose change.
When our pockets or purse get full of random coins, one smart trick is to put that money somewhere specific like a piggy bank rather than losing it in your couch or car. Remember, even though it’s a small amount, it’s your money and a little becomes a lot pretty quickly. Not only will using a piggy bank help clean up your house and car, a piggy bank also reinforces good savings habits.
2. The money in a piggy bank adds up.
When it comes to finances, it’s always important to set goals and using a piggy bank is a simple way to help you reach those goals. Whether you’ve got your eye on something fancy like a new party dress or trying to save for a new car or a family vacation, adding to a piggy bank will visually show how close (or far away) you are from making that purchase. Using a piggy bank with kids is fun, too. Ask them what they want to save for so you can help them set a goal. It might be fun to use more than one piggy bank. Label each one with your planned purchase and start saving. This is also a fun way to teach your children about money and the importance of saving.
3. Saving sets a great example.
Piggy banks are a really simple and effective way to teach children in the family about the importance of saving. Let them pick out their own piggy bank, one they can decorate and feel proud about. They may not be saving up for anything specific when you start but encourage them to think about what they may want to buy someday. Whether it’s a new toy, a new phone, or a new video game, it’s a good time to point out how much these items cost and how much they need to save in order to buy them. To help them better understand it, you can do this with your child. This should motivate them to find ways to earn money to put in their piggy banks. Suggest taking some additional chores or finding items they could sell in a rummage sale to make some extra money. Maybe a neighbor needs help picking weeds out of their garden. Most importantly, it would be very helpful if you discovered another source of income, like having the rummage, selling items online, or helping at a farmers market. Just be a good example for your child.
4. Reinforces “Always Be Saving” philosophy.
Saving should always be top of mind. As Benjamin Franklin famously said, “A penny saved is a penny earned.” As you teach your children how to save, it’s not a bad idea to show them how to use coupons or find discounts. It’s reducing the cost of the item for sale which means they’ll have more money left over. By using a piggy bank, they’re literally able to watch your money grow every time you save. Then, when they’re old enough to have a part-time job, they should know that it’s smart to designate a portion of their paycheck into a savings account. This is a great habit to keep with you throughout your adult life. Contributing to a savings account also prepares us for when an emergency or other unplanned life event occurs.
Now, we know what you’re thinking. What do you do once the piggy bank is full? There are a couple of options.
- Reward yourself with a treat! Whether it’s a double-scoop blue moon ice cream cone or souvenirs from the zoo, you should feel good about filling your piggy bank! We suggest putting some in a Great Midwest Bank savings account — a bigger piggy bank.
- Donate a portion of the money to a local charity in your area and put whatever is left inside your Great Midwest Bank savings account.
- Invest some of the money in ways to earn more money and put the rest into a Great Midwest Bank savings account.
- Put all of it into a Great Midwest Bank savings account. If you don’t have a savings account, stop into any of our convenient branch locations and learn about our options today.
There are only three things you can do with your money and maybe you figured it out already. Save, spend or share. The more you save, the more you have to spend and share. Developing a strong habit of saving your money with a piggy bank or a savings account will help you teach your children about money. If you want to learn about using a piggy bank or ways to keep more of your money, contact Great Midwest Bank today.