She Strengthens

The Power of Piggy Banks: A Personal Journey

Growing up, I had a unique introduction to savings, thanks to my grandmother. She gifted me my first piggy bank, shaped like a bear, when I was just a kid in elementary school. With her guidance, I developed the habit of stashing coins away, filling one piggy bank after another. Over a decade, I accumulated a substantial amount without a specific goal in mind or knowledge of the total.

A Surprising Inheritance

When all 31 of my piggy banks were full, I faced a daunting question: what to do with the money? As a traveler, I initially considered splurging on a European vacation or South American adventure. Then, I thought about my student loans. But first, I needed to count my coins. The process, known as “rolling,” involved wrapping coins into paper wrappers to create easily countable increments. After counting each coin individually, I was surprised to find I had amassed $2,534.60.

Psychological Savings

While financially savvy decisions are crucial, they’re also deeply personal. I knew I wouldn’t feel comfortable using the money for anything I couldn’t hold onto or use to secure my future. Traveling on that amount felt too indulgent, and paying off student loans, although smart, felt like giving away something precious. Instead, I chose to open a Roth IRA and invest in my retirement, alleviating the feeling of being behind in planning for my future.

The Pros and Cons of Piggy Banks

Are piggy banks worth using? The answer is both yes and no. On one hand, I accumulated a significant amount that contributed to my financial stability. On the other hand, there are drawbacks to this method. I could have saved more efficiently if I’d been more responsible earlier. My grandmother intended for the piggy banks to serve as an emergency fund, but I disagree with this approach for several reasons:

• Lack of transparency: I had no idea how much money was in my piggy banks.
• Time-consuming: Converting coins to cash takes time and effort.
• Limited acceptance: Businesses aren’t obligated to accept coins as payment.

A New Purpose for Piggy Banks

Despite the drawbacks, piggy banks can still be useful for saving towards smaller, non-essential expenses. For instance, I’ve started a piggy bank for a gold charm bracelet I’d like to buy someday. This way, I can save without dipping into my main budget. While I wouldn’t recommend using piggy banks for major savings goals or time-sensitive targets, they can be a great way to passively save for a special gift for children or young adults.

A Personal Reflection

In hindsight, my biggest regret is that my coins sat idle for so long, earning no interest. However, I’ve come to appreciate the value of piggy banks as a fun, low-maintenance way to save for smaller goals. They may not be the most effective main savings strategy, but they make for adorable room décor and can play a role in our overall financial journey.