Piggy banks can be used to teach children to be responsible with money.
Getting a kids piggy bank is an excellent way to teach kids about the value of money and the importance of saving. For younger children, a piggy bank can be a good way to teach them about coins and bills in terms of how much each is worth. Older children can be encouraged to learn how saving money can benefit them in later years, instilling in them an important concept that will be used for a lifetime. Getting just one piggy bank may not be enough as multiple banks can be used to separate money spent from money to be saved.
The piggy bank is a pig-shaped toy that allows you to deposit coins or, in some cases, banknotes. While children may see their piggies as toys, they can be valuable teaching tools for parents and caregivers. Saving money is a skill that will come in handy at all times in a person’s life, as those who master it are usually better prepared for financial calamities and more prepared to make big purchases. Getting a piggy bank for kids can start them on the path to financial prudence.
One way the piggy bank is useful is as a method of teaching young children how money works. Children just starting school may not understand the concept of how money is used and how much each coin or bill is worth. As an example taken from the United States monetary system, parents can use the piggy bank to show their children that a penny is worth a penny ($0.01 US Dollars or USD), a nickel is worth five cents ($0.05 USD) and so on.
For children who have a more advanced knowledge of money, a piggy bank can help them learn to save. Some parents may want to encourage saving by teaching their children the concept of interest. These parents can offer small interest on all the money saved in a piggy bank to the children, allowing them to see how that money accumulates over time.
However, just a piggy bank for kids may not teach saving skills properly, especially if kids quickly spend the amount they put in their banks. As a result, parents may want their children to keep multiple piggy banks. One could be chosen to save, while the other could be used to accumulate money to spend. That way, kids can enjoy the money in a piggy bank while learning the importance of saving with each other.