Piggy bank meaning for kids
Short answer
A piggy bank is a small container, usually shaped like a pig, that kids use to save money by putting coins or bills inside. It helps children learn how to save money little by little, watch their savings grow, and make choices about spending or saving. This simple tool introduces important money skills in a fun way.
What is a piggy bank in simple words?
A piggy bank is a special container where kids keep their spare coins and sometimes small bills to save money. Most piggy banks look like pigs, but they can also be shaped like animals, cartoon characters, or simple jars. The idea is to have a safe place at home for money that kids want to save, instead of spending it right away.
For example, a piggy bank might be a ceramic pig with a slot on top for coins. Kids drop money into the slot, and it stays inside until they open the piggy bank. Some piggy banks can be opened easily, while others need to be broken or unlocked, so kids learn to be patient with their savings.
Piggy banks help kids understand the concept of saving money by giving them a physical place to put their coins. This makes saving feel real and exciting. Instead of coins disappearing from their hands, kids see their money piling up inside the piggy bank.
How does a piggy bank work? (with a clear example)
Using a piggy bank is easy and fun. Kids put coins or small bills inside through a slot. The money stays inside until the piggy bank is full or the child wants to open it. Here’s a simple example to show how it works:
Imagine a child receives $1 as weekly allowance. They decide to save half of it, so every week they put 50 cents into their piggy bank. After one month (four weeks), they will have saved $2 (4 × $0.50). If they keep this up for three months, their piggy bank will hold $6. That could be enough to buy a small toy or a book.
This example shows how saving a little regularly adds up over time. Kids can see the coins inside their piggy bank and feel proud of their progress. It also teaches patience, because they have to wait until the piggy bank is full or the right time to use the money.
Parents or teachers can help kids count the money inside and talk about what they want to do with it. They might choose to spend some, save for something bigger, or even share some by giving to a cause or a friend.
Why does a piggy bank matter for kids?
Piggy banks matter because they teach kids an important life skill: saving money. Learning to save early helps children understand how money works and why it’s smart to keep some money aside instead of spending everything right away.
When kids use a piggy bank, they practice self-control by deciding not to spend every coin they get. This builds financial discipline, which will help them when they grow older and manage bigger amounts of money. Saving also helps kids set goals, like buying a new game or a gift, and work toward those goals step by step.
Besides saving, piggy banks teach responsibility. Kids learn to take care of their money, keep it safe, and think about how to use it wisely. This responsibility can boost their confidence in handling money and lead to good habits like budgeting.
For example, a child might decide, “I want to buy a skateboard that costs $30.” Using their piggy bank, they can track how much they save each week and feel excited as they get closer to their goal. These positive experiences make money lessons stick.
Why is it called a "piggy bank"?
The phrase "piggy bank" has an interesting history. Long ago, in the Middle Ages, people saved money in jars made from a type of clay called "pygg." These jars were simple and shaped like pots, but over time, potters started making pig-shaped containers as a fun way to save coins.
Because the word "pygg" sounded like "pig," the name “piggy bank” stuck, even though the containers weren’t originally pig-shaped. Today, pig-shaped banks are popular because pigs are cute and playful symbols that make saving money more appealing to kids.
Knowing this story can make saving money more fun for children. They can imagine they are part of a long tradition of saving money in piggy banks – from clay jars to colorful plastic pigs.
In addition, pigs have historically symbolized good luck and wealth in some cultures. That’s another reason pig-shaped banks became popular around the world.
What money terms are related to piggy banks?
It’s helpful to know some money words that are related to piggy banks but mean different things:
- Savings jar: A simple container for saving money, but not necessarily shaped like a pig. It can be any jar or box.
- Bank account: A real account with a bank where money is kept safely, earns interest, and can be withdrawn or deposited. Kids usually need a parent or guardian to open one.
- Wallet: A place to keep money you plan to spend soon, not for saving long term.
- Coin purse: A small pouch for carrying coins, often used for spending, not saving.
- Allowance: Money given regularly by parents to kids for chores or as pocket money, which kids can choose to save in a piggy bank.
Understanding these terms helps kids see how a piggy bank fits into the bigger idea of managing money. For example, a child might keep daily spending money in a wallet but save extra coins in their piggy bank for bigger goals.
How can kids start using a piggy bank?
Helping kids start saving with a piggy bank is easy and rewarding. Here are steps parents and teachers can use to get kids started:
- Pick the right piggy bank: Let the child choose one they like—whether it’s a traditional pig shape, a superhero, or a favorite animal. This makes saving more fun.
- Set a savings goal: Ask the child what they want to save for, like a toy, a book, or a special outing. Writing the goal down or drawing a picture helps make it real.
- Decide how much to save: Help the child decide how much money to put in their piggy bank regularly, such as part of their allowance or coins they find.
- Make saving a habit: Encourage saving every week or whenever they get money. Remind them it’s okay to spend some money but good to save part too.
- Track progress: Every few weeks, help the child open the piggy bank to count the money and see how close they are to their goal.
- Celebrate milestones: When the child reaches their goal, celebrate together! They can choose to spend, save more, or share some money with others.
Using exact phrases with kids can help, like: “Let’s put half of your allowance into your piggy bank today!” or “Can you count how many coins you have saved so far?”
What to do after learning about piggy banks?
Once kids understand piggy banks, parents and teachers can introduce more money skills:
- Teach budgeting by dividing money into saving, spending, and sharing jars or envelopes.
- Encourage kids to think about needs versus wants to make smart spending choices.
- Introduce giving, like donating some saved money to charity or helping family members.
- Use kid-friendly money tools like apps or charts to track savings and goals.
- Talk regularly about money goals, unexpected expenses, and how to save for the future.
These lessons build on the basics learned with a piggy bank and prepare kids to handle real money as they grow up. The goal is to help kids feel confident and responsible with their money, making good decisions that will last a lifetime.
For more ideas on teaching kids about saving money, see Why Use a Piggy Bank and Smart Money Habits Examples for Financial Well-being.
Frequently asked questions
Can a piggy bank hold paper money too, or just coins?
Many piggy banks can hold paper bills as well as coins. Kids can fold bills and put them through the slot, saving different types of money in one place.
What if a child wants to spend money but hasn’t reached their savings goal?
This is a good chance to talk about balancing saving and spending. Kids can choose to spend a small amount now and save the rest, learning to make decisions about money.
How do parents help kids without making saving feel like a chore?
Keep saving fun by praising efforts, setting exciting goals, and letting kids choose their piggy bank. Avoid pressure and let kids learn at their own pace.
Are piggy banks still useful when kids get older?
Yes! Older kids can use piggy banks for small savings or as a reminder to save regularly before moving to more advanced tools like bank accounts.
What should parents do if a child loses their piggy bank?
It’s a great opportunity to talk about keeping money safe and maybe get a new piggy bank or start using a savings jar or bank account if ready.