Understanding the pros and cons of saving money in piggy banks

It’s always a great idea to save some money for a rainy day or for a future purchase. But where you put it is a personal choice depending on what your considerations are. Do you have security in mind? Or is it convenience perhaps? Whatever they are, you may have thought about getting a piggy bank to store some extra money. It might help if you understand what’s involved in using one of these. There are obvious advantages and disadvantages that come with piggy banks.

Advantages

We all have spare change from groceries and other small purchases, and sometimes we just put it all over the house because we don’t have a central place to put it. A coin bank will allow you to keep track of small amounts of money that might otherwise simply get lost or misplaced. It can also be a great way to save for a small purchase, like something you saw on sale at the store later. Small, regular deposits in the piggy bank will accumulate enough to reach the desired amount. There are some large piggy banks that are convenient for growing decent savings, so that might be of interest to you.

Most piggy banks or piggy banks by their own design are pleasing to the eye. That means that in addition to using them to save some money, you can also use them as decorative pieces around the house. The piggy bank may not necessarily be in the design of a pig, but some are patterned after other animals or objects. So you could choose to become a collector of them and have them do double duty of saving your money and brightening up your home.

Disadvantages

When you’re saving money, it’s usually for a particular reason. Therefore, it is in your interest to ensure that enough is accumulated to achieve your goal. For example, if you’re saving to treat yourself to a weekend night out, you might be tempted during the week to use the money for something else because it’s readily available. It requires you to exercise self-control and discipline not to raid the piggy bank at will just because it’s convenient.

There are really no downsides to keeping money in a piggy bank, except that you may be tempted to withdraw an amount when you need it. But it’s actually not such a bad idea to withdraw money when you need it. Piggy banks serve as your instant backup plan. You have to go to a bank and withdraw money and that takes time and energy. On the other hand, withdrawing a piggy bank home is very easy.