What is the point of a piggy bank

Kids 8–12 · Explainer · Updated October 1, 2026 · LearnLife Editorial

What is a piggy bank in simple words?

A piggy bank is a small container designed to hold money, usually coins, that children can use to save. Often shaped like a pig, it has a slot on top to drop money in and sometimes a way to open it when it’s time to take the money out. The pig shape is popular because it makes saving money fun and friendly for kids. Materials used vary from ceramic, plastic, to metal, but all serve the same purpose: a safe spot where kids can collect their money instead of spending it right away.

For example, if a child finds loose change around the house or gets money for their birthday, they can put that money into their piggy bank. This helps them keep their money in one place and prevents losing coins. It also introduces the idea of saving money rather than spending it immediately. When kids see a piggy bank filling up, they can feel proud and motivated to keep saving. This simple tool is often the first step to learning basic money skills for children.

How does a piggy bank work?

A piggy bank works by letting kids put money inside through a small slot, where it stays safe until they decide to open it. The main rule is to save regularly and not take money out until a goal is reached. For example, imagine a child receives $2 every week from chores and decides to save half of it in their piggy bank. After five weeks, they will have $5 saved. The child may have to wait patiently to open the piggy bank, which teaches self-control.

Here’s how the process usually works step-by-step:

1. Get a piggy bank: Choose one that is easy to use and fun to look at.
2. Put money in: Every time the child gets coins or small bills, they drop a portion into the piggy bank.
3. Watch the savings grow: Over days or weeks, the piggy bank fills up.
4. Count the money: When the piggy bank is full or when the child wants to check progress, open it carefully and count the money.
5. Decide what to do: The child can choose to save more, spend on something special, or share some money as a gift or donation.

This process helps children link saving money with a goal and see how small amounts add up to bigger amounts over time.

Why does a piggy bank matter for kids aged 8 to 12?

Piggy banks matter for kids in this age group because they teach important life skills like saving money, patience, and goal setting. Between ages 8 and 12, children start understanding the value of money and how their choices affect what they can have. A piggy bank turns saving money into a fun and meaningful activity.

For example, a child might want to save $20 to buy a new book or game. Using a piggy bank, they can put aside $1 or $2 each week and watch their progress. This helps them learn how to delay spending on small desires in order to buy something bigger later — a skill that helps throughout life.

Besides saving, piggy banks build math skills by encouraging kids to count coins and add up totals. They also introduce responsibility, as children learn to care for their money and make decisions about what to do with it. These lessons prepare children for managing allowances, earning money, and budgeting as they grow older.

What are piggy banks used for?

Piggy banks are mainly used to save money gradually. Kids use them to keep coins and small bills safe and in one place. But piggy banks are more than just containers—they are tools for teaching money habits.

Here are some common uses of piggy banks:

• Saving allowance or chore money: Kids can put money earned from chores into their piggy bank to save for something special.
• Collecting spare change: Instead of losing coins, children can save all the loose change they find.
• Setting savings goals: Kids can name a goal, like saving $15 for a book, and use their piggy bank to reach it.
• Learning to share: Some piggy banks are divided into sections for saving, spending, and sharing, teaching kids to donate or give gifts.
• Practicing delayed gratification: Waiting to open the piggy bank helps kids learn self-control.

Piggy banks make these money lessons easy to understand because kids can see their money grow physically, which feels rewarding and motivating.

What terms do people confuse with piggy banks?

It’s common for people to confuse piggy banks with other money-related items, so it helps to understand the differences:

While piggy banks are physical tools for kids to save coins and bills at home, bank accounts and apps are better for older kids or adults managing larger sums. Understanding these differences helps parents and educators choose the best teaching tools for their child’s age.

What should parents and teachers do next to encourage saving?

Parents and teachers can make saving with piggy banks more effective by actively involving kids and making it a regular habit. Here are some steps adults can take:

1. Explain the purpose: Use simple language like, “A piggy bank helps you save money for something special you want.”
2. Set a goal together: Ask the child what they want to save for, such as a toy or a book.
3. Help track progress: Create a savings chart or calendar where the child can mark each time they add money.
4. Praise saving efforts: Celebrate milestones, like saving half the goal or reaching it.
5. Discuss choices: Talk about spending vs. saving and why waiting can be worth it.

For example, a parent could say, “If you save $1 each week, in 10 weeks you will have $10 to spend on your new game.” This kind of encouragement keeps kids motivated. Teachers can also create classroom activities like group savings challenges or piggy bank art projects to make saving fun.

How can kids keep their piggy bank safe and organized?

Keeping a piggy bank safe and organized helps children build responsibility. Here are practical tips kids can follow:

• Choose a safe spot: Keep the piggy bank somewhere visible, like a shelf in the bedroom, so it’s easy to remember to add money.
• Use a saving log: Write down every time money is added and how much, which helps track savings.
• Count regularly: When the piggy bank is full or the child wants, open it carefully and count the money together.
• Keep money secure: If the piggy bank is fragile, parents can help transfer money to a sturdier container or bank.
• Plan spending: After counting, discuss with an adult the best way to use or save the money further.

For example, a child might keep a notebook with entries like, “Week 1: Added $0.50. Total: $0.50,” which builds organizational skills and accountability.

What are some alternatives or additions to piggy banks for teaching kids about money?

Besides piggy banks, there are other tools that help children learn about saving and managing money:

• Saving jars: Use three jars labeled “Save,” “Spend,” and “Share” to teach budgeting and giving.
• Youth savings accounts: Open a bank account together with a guardian’s help to introduce banking concepts.
• Money apps for kids: Some apps simulate saving and spending, showing digital growth of money.
• Allowance envelopes: Kids can divide their allowance into envelopes for different purposes.
• Games and activities: Board games or classroom projects focused on money management reinforce lessons.

While digital tools are useful, piggy banks remain a strong way for young kids to gain hands-on experience with money because they can touch and see their savings grow. Combining piggy banks with these tools creates a well-rounded money education.

Frequently asked questions

How can I explain the idea of saving using a piggy bank to my child?

Use simple words like, “Saving means putting money aside so you can buy something bigger or better later.” Show them how putting a coin in the piggy bank means waiting instead of spending now, and explain how the money adds up over time.

Can a piggy bank teach kids about budgeting?

Yes, especially if you use multiple piggy banks or jars labeled “Save,” “Spend,” and “Share.” This shows kids how to divide money for different purposes and make choices.

What if a child loses interest in their piggy bank?

Try setting new goals, making saving a game, or involving the child in choosing rewards. Sometimes changing how you use the piggy bank or adding a savings chart helps rekindle interest.

Should kids open their piggy bank often or wait a long time?

It depends on their goal. For some, checking progress regularly helps motivation. For others, waiting until the piggy bank is full teaches patience and delayed gratification.

Is it better to use a piggy bank or a bank savings account?

For young children, piggy banks are better to physically practice saving. As they get older, a youth savings account with a bank helps teach real banking skills and earns interest.