Do piggy banks really work?

**disneysteve** · 08-06-2013, 03:16 PM

I'd say they definitely work. Teaching kids the value of saving money is critically important. Using a piggy bank to show them that if they put a small amount in regularly, it builds up to be a larger amount is a great lesson. Tie it to something specific that they want but can't afford without saving to really make the lesson meaningful. If the kid gets $3/week allowance, for example, and there is a toy they want that costs $5, get them to put $1.50/week from their allowance into the bank and after 3 weeks, sit down and count the money with them. Show them that because they saved, they now have $4.50 and reward them by giving them the last $0.50 and taking them to the store to buy that toy.

**cooliemae** · 08-06-2013, 09:48 PM

Originally posted by disneysteve View Post

Show them that because they saved, they now have $4.50 and reward them by giving them the last $0.50 and taking them to the store to buy that toy.

This is the main point about piggy banks (and most things out there) with regard to how effective they are. If you just put a piggy bank out there for the child to use, but don't follow up with educating the child as to why it's there then the bank is more or less ineffective.

This is where parents can really impart to their child that they can only buy things they can afford and to prioritize their needs/wants/desires because they only have what's in their piggy bank!

**4theluvofgold** · 08-06-2013, 11:43 PM

I definitely agree they work. In Alaska we get the PFD (the dividend check Alaskan citizens receive) I just started with the piggy bank for the boy. He is excited to find a penny in the parking lot to put into it. I like the method you gave disneysteve. I will have to use that one.

He has spent a lot of time with the grandparents who... well.. are not money wise in any sense of the term and always after he visits them we have to remind him for months without throwing them under the bus of how to manage money again.

He has been creative for feeding his pig though. Doing drawings of people free, but with a donation cup there and people just can't help but put something in the cup.
Lemonade stand with his cousin did well.

At 7 he has made it pretty easy to teach. The heavier it gets the more he knows that he has accomplished. I even gave him a question on what to think about doing with the coins. I gave him the 2 options of our credit union which only charges 1% for our level of member. Or the gift cards that don't charge. He decided himself to do 50 dollars to gift cards to get Christmas presents.... In June. He wanted 5, 10 dollar cards but they only issued in 25 dollar increments at the store we were at. So I had him trade 2, 25 dollar grocery cards and I would buy the 5 smaller gift cards for him. He deposited the rest which was 83 dollars into his checking. (He isn't aware yet of the dividend checks in there for him in his money market funds too large an amount to disclose yet I think)

Hopefully he keeps these good habits and doesn't follow the grandparents or else

**shaggy** · 08-07-2013, 01:44 AM

I loved having a piggy bank as a child and still think of it with great nostalgia. My parents told me nothing about money, but I had an older brother who stepped in to fill that void. I am very grateful that he gave me lessons on saving with that piggy bank when I was very young.

**Keira Clauson** · 08-07-2013, 07:23 PM

I definitely think they work. I had one growing up, and it felt so good to make my piggy heavier. I would recommend all kids have some sort of piggy bank.

**lorraineb** · 08-08-2013, 10:33 AM

I think it's how you present the savings that is more important than the container that holds the money. Spending time to explain why we just don't spend all the money we get right away, what things to save for and why that's important. Teaching delayed gratification in invaluable. I think the piggy bank is the default on how we do that in our society, but not necessarily the only way it can be done.

**snafu** · 08-08-2013, 10:45 AM

Our DKs used a mid sized Mason jar because it's so visible. We taught that 10% of any money earned or from cash gifts was an automatic 'pay yourself first' to the jar. DSs did some chores for pay as soon as they could understand the concept of work for pay. That's how you get the money you need to buy stuff.

**SeanH** · 08-08-2013, 12:49 PM

I don't know whether they work for children, but I can tell you there is no loose change lying around my apartment. I'm pretty sure I didn't keep track of pennies in my younger days which is sort of comical now considering the bother I've gone through to get back 1% on credit card purchases.

**Wino** · 08-08-2013, 10:47 PM

Originally posted by snafu View Post

Our DKs used a mid sized Mason jar because it's so visible. We taught that 10% of any money earned or from cash gifts was an automatic 'pay yourself first' to the jar. DSs did some chores for pay as soon as they could understand the concept of work for pay. That's how you get the money you need to buy stuff.

I second the mason jar suggestion. Ball up any bills that are put in there to add bulk. When the jar gets full, take it to the local bank or credit union that offers free children's accounts, and then repeat the mason jar project until it is full once again.

**Fishindude77** · 05-13-2016, 05:41 AM

Piggy banks are great for kids.

**rennigade** · 05-13-2016, 10:15 AM

holy pig vomit of an old thread

**clatoden99** · 05-20-2016, 04:27 AM

One of the stories behind the name 'piggy' in 'piggy bank' dates back to 15th century Europe. At that time, a type of clay called pygg was used for making plates, bottles, and vessels. People began to store spare coins in containers made of pygg, which came to be known as pygg banks. Eventually, the term 'pygg' was misinterpreted as 'pig', and money boxes began to be made in the shape of the animal.

There is, however, another story. This time from China. It states that during the time of the Manchu Dynasty, in the seventeenth century. pigs were regarded as symbolic of wealth and prosperity. Thus, pig-shaped vessels were crafted to store coins.

**sv2007** · 05-24-2016, 12:52 AM

Originally posted by wallet View Post

Do Piggy banks really work to help children learn about money, or are the just a gimmick that have no influence?

All that money is put away means the kid can't even learn to count.
And to find out how much there is, he's got to break that thing?
Wouldn't that be like destroying $10 to find out he's got $2?
Ok, the above is my joke for the day.

**Nutria** · 05-24-2016, 09:42 AM

Originally posted by sv2007 View Post

All that money is put away means the kid can't even learn to count.
And to find out how much there is, he's got to break that thing?
Wouldn't that be like destroying $10 to find out he's got $2?
Ok, the above is my joke for the day.

Every piggy bank I've ever seen has a plugged hole in the bottom to let you count your money.

Do piggy banks really work?