Piggy banks can be used to teach children to be responsible with money.
Getting a piggy bank for kids is a great way to teach them 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 throughout their lives. Getting a single piggy bank may not be enough, as multiple piggy 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, bills. While children may view their piglets 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 often 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 from the United States monetary system, parents can use the piggy bank to show their children that a penny is worth one penny ($0.01 USD), a penny is worth five cents ($0.05 USD), and so on.
For children who have a more advanced understanding 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 young children interest on all the money saved in a piggy bank, allowing them to watch that money add up over time.
However, a children’s piggy bank alone may not adequately teach savings skills, especially if children quickly spend the amount they put in their piggy banks. As a result, parents may want their children to have multiple piggy banks. One could be chosen to save, while the other could be used to accumulate spending money. That way, kids can enjoy money in a piggy bank while learning the importance of saving from each other.