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A piggy bank is an excellent way to introduce your kids to the concept of saving money. However, a money box can also be a great way for us adults to get back into the savings habit.

It's important to stress, though, that putting money aside into a money box is not a substitute for putting money into a savings account. You earn no interest on cash that is in a money box, so your aim should be to use the money box as a reminder to set aside spare cash and then periodically you can empty your piggy bank and put the contents into a high interest savings account. That way, you will start to really see your money grow, rather than gradually depreciate in value due to the effects of inflation.

With regards to getting a piggy bank, I'd suggest opting for one that comes with a key so that the money can be easily accessed, as and when necessary. Sometimes banks will give out free piggy banks when you open a kid's account, which may save you some money.

Where you are using a piggy bank to introduce your child to the concept of saving money, then I'd also suggest the idea of rewarding your kid if they keep the balance at a certain level. For example, promise them an extra month's worth of pocket money at the end of the year if they've grown their money by an agreed amount. This may help to encourage them to save their money rather than spend it all on sweets!

As already stated, however, adults are increasingly using money boxes as a means of making something from the household loose change. They can be an excellent aid to bringing a saving discipline into your spending patterns and you may be surprised at the amount of money that starts to accumulate. In my household, we have a large(ish) money box that sits in our living room. We put our small change into it and once it's full we take those coins to the bank to be added to our savings account.

A good way to quickly fill your money box is to always put your loose change into it after you've been on a shopping trip. Additionally, you will often find that your wallet or purse has become far too heavy with coins so, instead of dumping those coins into a drawer, put them into your money box. There is something quite enjoyable about hearing the clink as each coin lands in the money box and you may find that this focus upon saving your small change may also help you to become more disciplined in making larger scale monthly savings.

Learn more about this author, Simon Wright.
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