Piggy Bank

A child’s money container, sometimes in the shape of a cartoonish pig.

Piggy banks are used by children to store their coins and bills.

Piggy banks serve as a simple and fun tool for teaching children about the concept of saving, the value of money, and basic financial principles.

Piggy bank

Why It’s Called a Piggy Bank

The term piggy bank comes from the Old English word "pygg," a type of clay used in making household objects such as jars.

Over time, potters began making banks in the shape of pigs, delighting children and parents alike.

This led to the popular term "piggy bank."

Piggy Bank Uses

Piggy banks have a variety of uses for all age groups.

They serve as decorative storage for money for grown ups and kids alike.

The habit of saving loose change might seem trivial, but over time even a penny here and there can grow to fund small treats.

For children, piggy banks take on an educational role, acting as their first savings account.

This allows kids to have a personal stake in money management, helping them understand the concept of saving.

They can store their allowance, gift money, or earnings from small jobs, giving them a sense of ownership and teaching them the value of money.

Piggy banks serve as an essential tool for instilling financial literacy in young minds.

financial literacy for kids

With a piggy bank, children can start learning the basics of saving and budgeting.

Types of Piggy Banks

1) Ceramic Piggy Banks:

Traditional piggy banks are often made from ceramic or porcelain.

They are painted and often designed to look like a pig.

The only way to retrieve the money is usually by breaking them, promoting the concept of saving over spending.

These are better fit for adults.

Traditional ceramic piggy bank

2) Kids Piggy Banks:

These are designed with a fun and appealing look to attract kids, from cartoon characters to animals, superheroes, or fairytale themes.

Kids' piggy banks are made with child-friendly materials, like rubber or non-toxic plastic.

These materials ensure the piggy banks are safe for kids to handle.

They also have an easy way of opening them so kids can count how much they have saved.

unicorn piggy bank

3) Electronic Piggy Banks:

These piggy banks count the money as it is deposited, giving an instant update on total savings.

They can be a fun way to encourage saving and keep kids interested in tracking their progress.

mini atm piggy bank

4) Digital Piggy Banks:

With the rise of technology, virtual piggy banks are becoming popular.

These are apps that help kids save and track their money digitally.

digital piggy bank app

These often come with parental control options and can be a stepping stone to managing an online bank account.

Piggy Bank as a Financial Literacy Tool

Piggy banks play a pivotal role as a learning tool for children.

They kickstart the process of teaching children about the concept of money, its value, and the principles of financial management.

You can introduce kids to piggy banks at an early age, as young as three years old.

They are a popular kindergarten graduation gift.

Some piggy banks divide a child's money into three different sections - spend, save, and give.

This way, kids learn about budgeting, saving, and even being generous, all in one go.

Setting goals is also a great way to make saving fun and rewarding.

A popular approach is to encourage children to save 50% of their allowance or gift money.

Want that super cool toy spaceship? Time to start saving working towards it.

It makes it that much more exciting when the kids finally reach their goal.

A popular approach is to encourage children to save 50% of their allowance or gift money.

It's important to consistently remind them that regular saving is a good habit, not just something that's done occasionally.

This early introduction to the principle of "paying yourself first" can shape a child's financial behavior positively in their adulthood.

Alternatives to Piggy Banks

When the piggy bank starts to feel heavy and jingles with every move, it's a sign of achievement for young savers.

It's a sign that a child has been working hard, saving coin after coin.

But what comes next?

Well, there's no age limit to introduce kids to the grown-up world of banking.

When a piggy bank is overflowing with coins and bills, instead of simply getting a larger one, consider a different approach.

How about taking a trip to the bank?

You can open a bank account for your kid, set up a digital wallet. You can get them a a prepaid debit card and money app, or even introduce them to investments.

For the kids, it's not just a boring task; it's an experience, a new chapter in their financial journey.

The transition from piggy banks to a more mature financial instrument offers crucial lessons in financial literacy.

Introducing alternatives at the right time can kickstart a young one's financial future.

Here are some age-appropriate alternatives to consider when the time is right:

1) Junior Bank Accounts

Suitable for kids as they grow a bit older, these accounts offer them a glimpse into the realm of banking.

It's an exciting phase where they transition from counting coins in their hands to seeing numbers on a bank slip.

See our list of the best savings accounts for kids.

2) Prepaid Debit Cards for Kids

As kids get a bit older, prepaid cards can be a consideration.

It's a step forward, enabling them to manage and spend their savings, yet under the watchful eyes of parents.

3) UTMA Accounts - Investing

For those who seem to have the knack of saving more than they spend, introducing the idea of investments might be timely.

With a UTMA account, basic investments such as bonds or even simpler mutual funds can be an exciting adventure for them.

4) Digital Wallets & Money Management Apps

Living in this age of technology, it's almost inevitable that teens will come across digital modes of transactions.

Apps that help them manage, save, and even spend their money can be both educational and handy.

Transitioning from piggy banks to these alternatives ensures children are equipped with a comprehensive understanding of money, banking, and financial management as they grow into adults.

Origins of the Piggy Bank

The origins of the piggy bank are not entirely clear, and there are a few different theories about where and why this tradition started.

One popular theory comes from the Middle Ages in England, where people used pots made from an orange-colored clay called "pygg" to hold their money.

Over time, English potters began crafting these pots into the shape of pigs, and the term "pygg bank" eventually evolved into "piggy bank."

However, it's also worth noting that the concept of a money box has roots in many cultures across the world, not just in Europe.

For example, pig-shaped money boxes have been discovered in Indonesia dating back to the 14th century.

These were likely inspired by the wild boars that were indigenous to the region.

Additional Questions

What is the best piggy bank for kids?

The best piggy bank for kids depends on their age, interests, and your goal in teaching them about money.

Consider their preferences, like their favorite colors or characters, to make saving more appealing.

Younger kids will enjoy saving with a character they love.

Older kids can enjoy advanced features, like electronic counters, or money apps.

What age should a child get a piggy bank?

As soon as the child can start counting and understands the concept of money, usually around the age of five.

Piggy banks are a popular kindergarten graduation gift.

However, a child can get a piggy bank at any age.

For younger children, choose soft or unbreakable piggy banks.

For older kids, consider digital or electronic piggy banks to make saving more interactive.

What is the difference between a piggy bank and a money box?

There isn't a significant difference between a piggy bank and a money box.

Both serve the purpose of saving money.

The term "piggy bank" often refers to a container specifically shaped like a pig, while a "money box" can refer to any box used to save coins and bills.

Can I take my piggy bank to the bank?

Absolutely! When your piggy bank is full, it's the perfect opportunity to teach your kids about the bigger world of banking.

You can even set up a savings account for your child during your visit.

Most banks accept both coins and bills. Some banks might even provide you with coin wrappers or packets to organize and roll your coins before depositing.

It's always a good idea to check with your local branch about any specific coin-counting policies or fees they might have.

This way, they can deposit their hard-earned savings, start fresh with their piggy bank, and gain some valuable insights into the world of banking and financial responsibility.

They might even earn some interest if you set up a high yield savings account.

It's a win-win!

Related Terms:

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