There is nothing more exciting than saving up money for that one special ‘something’. People set resolutions such as buying a car or a house, going to university, saving for pension funds, or traveling and adventure. In most cases, each set goal will require a great effort for it to be realized and in some instances, require money. Therefore, there is a great deal of saving that needs to be done. The 21st century is endowed with many investment companies that can aid in saving up money for later use. These are the banks and insurance companies, where one has collateral over his or her assets over time. However, with Zimbabwe’s economic crisis, where interest rates fluctuate, the economic instability has pushed most citizens to find alternative means of saving money, such as property investments and money loans with interests. Recently, social media went crazy over the use of piggy banks as the new way of saving money.
What is a piggy bank?
Traditionally, piggy banks were piggy shaped containers that were given to children to save pocket or gift money. It was a saving method that was meant to teach children the importance of saving in order to buy a toy or any food item they desired. One would set a target of a certain amount for a specific period.
The small opening was used to put money in the bank, but there was no other opening for collecting the money unless it is broken. In most cases, they broke it after they had reached the target over a set period.
This ensured discipline over the temptation to use the savings for anything else than the intended goal. It also gave a sense of control of finances, which motivated saving and keeping the piggy bag in one piece.
However, the current version has been refined to suit all age groups. It has been ‘pimped’ to accommodate older groups that seek to save without anxiety of interest rates or an unstable business environment.
This is the ‘trending’ piggy bank but famously known as the tin bank. People are recycling tins and creating banks.
Advantages of piggy banks
- One sure thing is there are definitely no charged rates compared to banks
- It nurtures the spirit of accountability, maturity and self-control
- Timesaving compared to waiting in queues at banks, travelling and so on
- It aids in keeping loose changes that can otherwise be lost or impulsively used for unnecessary items
Disadvantages of piggy banks
- Easy to break and use savings
- Risk of being stolen or lost
- It does not accumulate interests compared to banks or insurance companies
There is always a need to assess an option before implementing it. What are the highs and lows of using a piggy bank? Can it be an alternative to banks and insurance companies? One has to consider all these questions before adoption.