Introducing a piggy bank to your kids when they are little can help fuel their interest in money and teach kids about financial literacy. Studies have shown that children can start learning basic money concepts by the age of 3. At 7, children started developing their money habits. So the sooner you can start, the better.
Why do they call it a piggy bank?
I had never thought about why piggy banks are shaped like a pig. But it’s a good question … and one my curious 4-year-old asked himself when I gave him his first piggy bank.
Why a pig? What does a pig have to do with saving?
According to an article by Acorns, the piggy bank dates back to the Middle Ages. During this time, pots were used to hold people’s money, and they were often made from an orange clay called “pygg”. These money pots became known as “pygg pots”. Over time and the development of the English language, the word “pygg” has been pronounced as “pig”. From this point, you can probably see how the piggy bank evolved into what it is today.
If your little one asks why we save money on a pig, you have the answer!
Benefits of a piggy bank for children
Despite all this history, the shape of your child’s first piggy bank doesn’t matter. You can just use an old mason jar with a coin slot cut into the lid, or you can make a DIY piggy bank of whatever shape you want.
Important is the concept of the piggy bank, which you can use to teach your kids a number of saving tricks and other financial habits:
- A piggy bank is a nice way to introduce money literacy.
- It’s a way of introducing different coins.
- A piggy bank can be used to teach basic math skills like addition and subtraction.
- Some parents like to give their children multiple piggy banks to teach the basics of saving, spending, and giving.
- The piggy bank can also be used to teach the very important skill of delayed gratification. While these coins are easy to slide into the coin slot, it’s not that easy to get them out! Children have to learn to wait. Not having instant access to their money is a great way to learn patience and prepare them for a more adult savings account (when the time is right).
Different types of piggy banks for children
In addition to the classic piggy bank, there is a whole range of themed money boxes. After all, another animal / shape / thing might better suit your child’s interests. So if your child isn’t into farm animals, see if you can find or build a more unique piggy bank.
When buying a money box, you can also choose from a number of materials. There are plastic piggy banks (which are great for young children who are likely to drop their coin bank), wood options, and even ceramic piggy banks for older children.
First piggy bank
You can find a money box that comes in the shape of your child’s initial. She can work on topping up her “A,” “S,” or “Z” bank. This makes the experience a bit more personal and fun. Children always love it when something is tailor-made for them.
Separate areas for saving, outputting and sharing
If you want to reinforce the concepts of saving, spending, and sharing without having to have three separate piggy banks, there are a few options with three cash stubs.
Spaceship piggy bank
For the kid who loves space! You can keep your hard-earned coins in a rocket-shaped piggy bank.
Electronic piggy banks for children
If your kid is into all of the digital things, an electronic piggy bank might be the way to go. An electronic piggy bank is exactly what it sounds like: it’s a digital piggy bank. Electronic piggy banks can be a more modern option, especially for older children … and a little more entertaining and adult than a pink ceramic pig.
You can find a selection of electronic piggy banks on the Internet. These can be really fun for your kids – just keep in mind that the disadvantage of digital piggy banks is that they require batteries.
Give your kids a taste of reality with a piggy bank that looks like an ATM. This can even start a conversation about how to safely use a debit card to withdraw from an ATM. (If they ever use paper money in our digital world!)
Safely shaped coin bank
For children who especially want to protect their money from siblings, you can buy a safe-themed piggy bank. To get into the safe, your child has to use a four-digit passcode that only they know.
Puzzle boxes that will help kids save money
Another cool way to initiate a money conversation with kids is by giving them a puzzle box. This is a box that can only be opened by solving a puzzle. It may require sliding, lifting, squeezing, or some other type of brain teaser to access the inside. A puzzle box is better for older children who can figure it out.
A puzzle box can also be a fun and clever way to give cash to someone. They can be used to give a birthday, graduation or Christmas present. Not only can the box be very beautiful or interesting, but you can also store some money or a small gift in it. If the person figures out how to open the box, they will be pleasantly surprised with a gift.
While puzzle boxes are the perfect gift box to give away money or a small token like a piece of jewelry, they can also act as a kind of bank account at home for older children. Since they require some strategy to get in, they are good for storing money.
Piggy banks help teach financial literacy
Give your children a financial head start by introducing the concepts of money and saving as early as possible. When your kids are very young, simply putting different coins together in their cute piggy bank can be a fun activity that will also help them learn about money. As your kids get older, you can introduce digital piggy banks or personalized coin banks to spark their financial interests and provide them with a fun place to save their pocket money or cash.
– From Jessica Martel