We all know that interest rates are little to none, which gives very little incentive to save. However, with the Brexit uncertainty, a declining pound and lack of confidence with the banks, it is still important to save now more than ever.
Why traditional saving?
A traditional piggy bank is way to save money on the side, with out the need to store it under the bed as banks can’t be trusted (as the joke goes). You are not likely to go to your piggy bank unless its an emergency. With an online ISA it can be tempting to transfer the money to another account and withdraw it instantly.
With a piggy bank you can drop your loose change or coins in without always counting how much you put in there. Over a short space of time, you can accumulate money where you can”t see the physical amount you’re saving unless you decide to break it open. Soon enough when it comes to counting your money, you will be shocked how much is in there. It goes without saying of course the more you put in, the more you get out.
Use for an emergency fund
A piggy bank is not only a good way to save as an emergency fund but for one off expenses such as holiday travelling spending money or a treat to spend on yourself.
Make saving fun
You can set fun goals in order to your savings. For example, a few people have a swear jar, therefore for any profanity they use they will have to deposit a small amount in the jar. Perhaps if you have children you can also encourage them to save their money in the piggy bank and watch their excitement when it comes to money counting day. They can even guess how much money they think is in there and see how close they were to getting it right.
With a piggy bank you won’t be reminded constantly that you have a specific amount left to withdraw on your tax-free allowance. You can withdraw from your personal savings whenever you wish. Just do not forget to keep top it up every month.
For people with businesses, it can be really helpful having a piggy bank to keep your petty cash and receipts in. In fact, you could colour co-ordinate your piggy bank perhaps a red piggy bank for your food expenses, green for transportation costs and maybe a blue one for stationery expenses. You could really get creative and have fun with this if you decide to, more than an online banking can offer.
This post was written by Denise.