Piggybanks: How They Are Saving Your Money

Are you looking for a creative way to save a little extra cash? The obvious way to start a cash reserve is to open a savings account with your local bank, and deposit funds on a regular basis. However, with debit and ATM cards, it's easy to dip into your savings account and spend the money. On the other hand, it's more difficult to steal money from a piggy bank. In most cases, you would have to break into the piggy to get the money, which makes an old-fashioned piggy bank one of the best ways to save money.

1. Choose the Right Type of Piggy Bank: There are different types of piggy banks. Some have an opening at the bottom that allows you to take money at your leisure. This defeats the purpose. The ideal is to save money, not take from the bank on every little whim. Select a piggy bank without a bottom notch. This way, once the money is placed inside, you can't touch it.

2. Deposit Loose Change: It doesn't take long to fill a piggy bank. Each day, make a conscious effort to deposit all your loose change into the piggy bank. In the beginning, it might help to rummage through pant pockets, purses, or your car and locate all your spare change. Quarters, nickels, dimes, and pennies quickly add up, and you might start your piggy bank savings with $5 or more.

3. Save Money for an Entire Year: To benefit the most from a piggy bank, save the money for at least a year. If you deposit spare change every day, and add a few extra bills, you could save a few hundred dollars or maybe a thousand dollars within 12 months. Better yet, wait until the piggy bank is full, or save money for two consecutive years. Break the bank with a hammer and roll the coins. If you want to skip the hassle of rolling coins, visit a Coinstar kiosk.

4. Deposit Dollar Bills: Along with your spare change, try and deposit dollar bills into the piggy bank. A small deposit of $5 a week for an entire year will generate an additional $260. Deposit $20 a week for a whole year, and you'll save over $1,000. Use the money for a variety of purposes. Start an IRA or Money Market account, payoff high-interest credit cards, or take a vacation.