At SmartCapitalMind, we're committed to delivering accurate, trustworthy information. Our expert-authored content is rigorously fact-checked and sourced from credible authorities. Discover how we uphold the highest standards in providing you with reliable knowledge.
What Are the Advantages of a Piggy Bank for Kids?
Getting a piggy bank for kids is an excellent way to teach children about the value of money and the importance of savings. For smaller children, a piggy bank can be a good way to teach about coins and bills in terms of how much each is worth. Older children can be encouraged to learn how saving money can be beneficial to them in later years, instilling in them an important concept that will be used all throughout their lives. Getting just one piggy bank may not be enough, since multiple banks can be used to separate spending money from money to be saved.
A piggy bank is a toy shaped like a pig that allows for the deposit of coins or, in some cases, bills. While kids may look at their piggy bans as toys, they can actually be valuable teaching tools for parents and guardians. Saving money is a skill that will be useful at all points in a person's life, since those people who master this are generally better prepared for financial calamities and are more equipped to make big purchases. Getting a piggy bank for kids can start them on this road to financial prudence.
One way that a piggy bank is useful is as a method of teaching small children how money works. Kids who are just entering school might not understand the concept of how money is used and how much each coin or bill is worth. As an example drawn from the monetary system of the United States, parents can use the piggy bank to show kids that a penny is worth one cent ($0.01 US Dollars or USD), a nickel is worth five cents ($0.05 USD), and so on.
For those children who have a more advanced knowledge of money, a piggy bank can help them learn how to save. Some parents may wish to encourage saving by teaching kids the concept of interest. These parents can offer small interest on all of the money saved in a piggy bank for kids, letting the children see how that money accumulates over time.
Just one piggy bank for kids might not properly teach saving skills, however, especially if kids quickly spend the amount that they put in their banks. As a result, parents might wish to have their kids keep multiple piggy banks. One could be singled out for saving, while another could be utilized to accumulate spending money. In this way, kids can enjoy the money from one piggy bank while learning the importance of saving with the other.
AS FEATURED ON:
AS FEATURED ON:
-
![Piggy banks can be used to teach children to be responsible with money.]()
By: Brian JacksonPiggy banks can be used to teach children to be responsible with money.
Discussion Comments
I used to have a silver (not really silver but silver colored) piggy bank when I was growing up. The thing was that it was not shaped like a pig. It was shaped like a monkey doing typical monkey things.
I loved it as a kid not so much as a bank or as a way to save change but as a noise maker. I would put 10 pennies in and then run around the house using it like a rattle. I think it drove my parents crazy but it was one of my favorite toys.
This year for Christmas I bought all of my nieces and nephews personalized piggy banks for kids. They have their names on the side and each one is a different color.
I had them made at a gift store that sells all kinds of cool arts and crafts. According to their parents they love them and they have been searching for any piece of loose change to drop in.
Getting your child a piggy bank can be a fun and effective way to teach your child the basic principles of saving money.
It can be difficult for them to pick up on the idea at first. I know that most kids put in a few quarters and are then eager to smash the whole thing open and get them back.
But if you can get them to buy into the idea and maybe plan on saving for something they really want it can be an effective and important life lesson. All of us need to LEARN to save. It does not come naturally. Reinforcing this behavior at an early age goes a long way.
Post your comments