by Francis Jock

Created on: May 14, 2010   Last Updated: October 30, 2010

Piggy banks aren't just for kids anymore. In these difficult financial times, piggy bank savings are a proven way to save money as part of a family financial survival plan. Piggy banks, once considered the easiest way to teach a child about the importance of saving money, have evolved into a serious financial tool for saving money.

Financial advisers will tell you that the key for saving money goes beyond making risky investments where the average person has no control whatsoever over the return.  Piggy banks, unlike other financial savings methods, are strictly a static savings device. The money you put into your piggy bank is safe there, and not subject to the vagaries of those complicated formulas that drive Wall Street to the brink of insanity.

That's why piggy bank savings are so valuable.  The function of the piggy bank is to provide you a single place to make a deposit on a regular basis. It's that act of regularly depositing small amounts of pocket change into the piggy bank that's the most important aspect of savings. It takes a small amount of self-discipline to do something routinely, and making a contribution to the piggy bank is one of the most important, yet basic forms of self-discipline there is. That’s what we were taught as a child, wasn’t it?  When everyone contributes to the savings process, everyone benefits from this small act of thrift. Soon enough, the savings habit will become routine and a tidy sum of money will grow, almost as if by magic.

It's important to get everyone in the family involved in piggy bank savings. Call it piggy-bank-savings with a purpose, if you like. For financially struggling families, the reason for savings comes down to paying the rent, having gas money so mom can get to work, or getting just one more bill collector off your back. The beauty of piggy-bank-savings is that small amounts of change will grow as quickly, and a little bit goes a long way.

Saving money wisely, however, is more complicated than collecting pocket change. It's a manner of knowing how to use the money you've saved in the most efficient manner possible to reduce family debt. Depositing money in a savings account is not the best option, anymore. Savings accounts pay so little interest that they seldom make any sense for a family that is strapped with high interest credit card and mortgage loan debt. It makes more sense to set a realistic goal for depositing a pre-determined amount of money into your piggy bank, and once it reaches that amount, use it to pay down the credit card with the lowest balance.

When combined with a workable debt reduction strategy, a realistic piggy bank saving plan can help you save money and get out of debt. The more you get your family involved, the more effective the plan will be. Respect the piggy bank. With a little self-discipline, this time-honored savings tool has helped many families survive depressions and will even help you to survive the current recession.

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