Why Every Child Should Have a Piggy Bank (and How to Use It Effectively)

The good ol’ piggy bank has oriented generations upon generations on savings and banking. Traditionally designed as a pig figurine, the term piggy bank refers to a coin container typically used by kids to save money.

The piggy bank is handy as an educational tool for teaching kids financial literacy, particularly on savings. It is a must-have if you want your young ones to appreciate the essence of money and savings. 

Sit tight through this discussion, as we explain why every child should have a piggy bank and how to use it effectively.

Why Get a Piggy Bank for Your Children

The primary reason for getting a piggy bank for your kid is to help them save. The container has a slot where you put coins or notes. The money is not easily accessible, unless broken, which fosters monetary discipline and patience. 

The following are other reasons to get the home bank for your kids.

1. Teaches the Essence of Saving

The piggy bank helps your child learn the importance of saving. As they put money into the container, they watch it grow over time and they can see that their patience pays. The money box also stands as a symbol of saving, and pushes your kid to save subconsciously. 

2. It Can Help Kids Understand the Money System

The money container can help your young ones understand the value of money and the money system.

Toddlers who have started learning about money can learn about different money denominations and their values. This helps them learn how money works and their worth.

3. Motivation for Goal-Setting

You save for a set goal, even if it is a rainy day, the aim is to have something to lean on. A piggy bank can set the pace for your young one to have goals and work hard to achieve them. The target might be a toy, a comic book, sneakers, and more, which will encourage them to save more. 
Once they know how to set goals, they are on the path to establishing financial discipline.

4. A Sense of Ownership and Responsibility

The home bank instills a sense of ownership and responsibility, as children will want to take care of their money and ensure everything is all right. It also nurtures self-independence, as the kids have their own money and a plan on how to use it once it reaches the desired limit.

5. It Helps with Budgeting and Controlling Spending

Another reason why every child should have a piggy bank is that it helps in budgeting. Grown kids who understand budgeting will know how to split their allowances and remain with enough to toss down the coin slot. 

The coin collector also aids in controlling spending. Your kids, with a goal set, will try their best to manage their spending to meet their saving obligations.

How to Use a Piggy Bank Effectively

After seeing the benefits of owning a piggy bank, we now focus on the best way to use it.

Pick the Right Piggy Bank

You start by choosing the right piggy bank for your children, depending on their age, needs, and preferences. For toddlers, you can use a clear jar, as they can see where their money is going and how it grows. 

Later, you can upgrade to the standard piggy bank. It is advisable to let your kid pick a piggy bank, as they will be in responsible for it. They may prefer home banks with a certain aesthetic that impresses them and which will encourage them to save.

Make Saving Fun

You should buy into your children’s fun-loving side and make saving exciting. Kids can easily get bored, especially with monotonous things like putting money into the jar. There are several ways to make this activity fun, like watching kids’ shows that encourage setting money aside, among other financial lessons.

You can help your toddlers design and decorate their piggy banks to lighten up the mood. Use a colorful chart to indicate your child’s saving goals and track their progress.

Lead by Example

Your kids learn plenty of things from you, meaning you should be a good example to them. On savings, you can get a piggy where you also save alongside your young one. They will look at it as the norm, and naturally pick up the habit.

Use it As a Stepping Stone to a Junior Bank Account

Use the money container as a transition to a junior savings account. You can upgrade your child to a savings account when they are 10-13. Orienting them to banking at this age will help them grasp crucial concepts early, such as interest. They can still keep the piggy bank for short-term savings targets.

Final Thought

You should get your child a piggy bank to encourage financial virtues like saving, budgeting, and monetary discipline. This article explores why every child should have a piggy bank and how to use it effectively.

Get a piggy bank too to stir your kids up and teach them the benefits of having a savings goal. Furthermore, start early introduction to traditional banking by putting the money set aside in a junior bank account once they are old enough.