Struggles of keeping a piggy bank

For almost three months, Lazarus Ojambo confessed he was doing well until he lost a job, became broke which posed his saving habits to break the box. It had helped him save daily. However, it is a different story for James Nabwere who saved extra denominations of Shs1,000 and Shs2000 for a year daily, and paid rent for two months upfront. On a different occasion, he surprised his mother with a full piggy bank as a Christmas package.

Piggy banks

Whether tins, boxes and toy engraved features, piggy banks, are tools to activate the attitude of saving. One of the facts that has helped countries like Japan, is having a high savings culture, admits Godfrey Kuteesa, the chief executive officer, Boys’ Mentorship Programme.

Most cases in Africa, people are reminded or motivated to save. That is why it is started at an early age to cultivate the habit of saving.

As you grow up and understand the monetary system, a piggy bank opens up one’s mind to saving that broadens the various options to a saving or fixed account or investment.

When someone starts saving, they need a consistent income to save from. Without that, it is easier to break it to fulfil pressing needs. Most people who use piggy banks save off the balance of the purchase. They keep the change.

Pros

Most people need piggy banks for some time until banks can be accessible everywhere. Piggy banks help one to save at their convenience which is not the case with banks. Kuteesa says, one has to incur costs to find where it is. Even with online banking, there is worry that the reception is either off or on.

In addition, it is easier to sort an emergency with a piggy bank. Emergencies can occur anytime even at night without access to banks or Automated Machines. When in reach, it can arguably sort out an issue depending on how much has been saved.

Savings culture

It helps one adapt to the savings culture. The mind-set change to have something saved off disciplines one to maintain the momentum.

“We all have a to-do-list that we want to fulfil and the amount saved could easily leapfrog to that necessity,” Kuteesa explains.

An article compiled by Great Midwest Bank, a local mortgage lender in the United States of America, justifies the need to have a piggy bank because it helps one organise loose change.

“When the pockets or purse get full of random coins, one smart trick is to keep that money somewhere specific like a piggy bank rather than losing it in your couch or car. Not only will using a piggy bank help clean up your house and car, a piggy bank also reinforces good savings habits,” the article reads.

The lender insists a piggy bank reinforces the “Saving” philosophy. Saving should always be top of the mind. As Benjamin Franklin famously said, “A penny saved is a penny earned.”

As you teach your children how to save, it is not a bad idea to show them how to use coupons or find discounts. It is reducing the cost of the item for sale which means they will have more money left over. By using a piggy bank, they are literally able to watch the money grow every time they save.

Cons

Kuteesa emphasizes having it in a trusted area could be tricky where it cannot be reached by relatives, children or housekeepers. It is better if one is staying alone, rarely can thieves break into the house and march out with one’s savings.

The uncertainty of not knowing how much has been saved could prompt someone into breaking it to find out the amount.

Being easily accessible is also a disadvantage. Any hard pressing circumstances like poverty, an emergency fastens the chances of breaking it for relief.

How to overcome the breakage

Kelvin Kiyinji, a financial inclusion coach, shares that one must instil in themselves financial discipline and vow to fulfil their resolutions in an estimated time frame.  In case one does that, they reward themselves after achieving that goal.

It is very important to be realistic. “At times, the piggy bank could be the only saviour in dark times. Do not lose it to a lender or an institution when you have some savings to brighten your day. You must live within your means. If possible ensure that savings increase every other month and spend less than you save.”

Kiyinji concludes that it is important to set goals and using a piggy bank to reach them is an easy way since the money adds up. Whether one has got their eye on something fancy like a new party dress or trying to save for a new car or a family vacation, adding to a piggy bank will visually show how close (or far away) you are from making that purchase.

Modest piggy bank

Stop being broke. 

Most people claim ‘‘they don’t  have extra money to save.’’

 According to U.S. News and World Report, people get caught in the cycle of “being broke” for three main reasons: They haven’t planned ahead, aren’t tracking their spending well or simply have poor financial habits.

But there is a way to save money that is catered to your lifestyle, is sustainable and, believe it or not, is something you probably did as a child: the modest piggy bank.