The new one pound coin: Will it affect my saving options? • Money Boat
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The new one pound coin: Will it affect my saving options?

The New One Pound Coin

In 2014, the public were given a chance to submit designs for the new one pound coin.

A 15 year old student at Queen Mary’s Grammar School, David Pearce won the coin design competition. His design was selected to appear on the “tails” side of the new one pound coin . His winning design features the floral emblems of the nations of the United Kingdom. The English rose, the Welsh leek, the Scottish thistle and the Northern Irish shamrock. All are bound by a single crown: an image of unity.

 

How Important Could £1 Be?

 

With the rise of cryptocurrency and the major role played by online banking and transactions, there is definitely a question about the relevance of small coins. But with so much effort having gone into the designing, producing and releasing of the new one pound coin, it appears that small change is not disappearing any time soon.

Think about what our lives would look like without these coins. How would one go about paying at vending machines, parking metres and getting change at supermarkets? What about giving tips to service-people or giving small amounts to street musicians?

 

There is a very important role of coins in our economy – at least when it comes to the different ways in which we spend. But what about when it comes to the way we save? What role does our small change play then?

 

Collecting Small Coins in a Piggy Bank

 

It may seem childish to associate saving money with a piggy bank, but there is definitely value in the practice! It is certainly a legitimate means of saving – but is it the most effective? Let’s take a look at the benefits of saving money with a piggy bank:

 

  • It Prevents Waste

How often do we just leave coins lying around the house or loose in a bag or pocket, only to lose it later or leave it lying there disregarded? While one coin alone may seem to be of negligible value, a few coins together add up! If we have one place to store all of our loose change, we can begin to see them as parts of a bigger, more valuable collection. This is much better than instead viewing individual coins as insignificant money. They can then be stored and contributed to our savings.

 

  • It’s Easy

Since it is not our mentality to consider coins to be particularly significant, it’s easier for us to be okay with not spending them. We’d rather save them in a piggy bank than keep them in our purse or wallet. Although we are actively saving this money, we are less likely to feel like we are restricting ourselves because we can’t imagine buying much with loose change. It’s much easier to deposit a few coins into a box, than it is to set aside a portion of our income and remain disciplined enough not to spend that allotted amount.

 

  • It’s Educational

If you have young (or not so young) children at home, the visual aspect of a piggy bank is extremely important in teaching your children how to appreciate ALL money. As well as how they can actively save. Since children can’t see you deposit funds into your bank savings account, they may not fully understand how or why to save. If they see you putting coins into a piggy bank to be used at a later time, the idea may make more sense to them. From this they’ll begin to grasp the value of saving. A piggy bank can serve as a reminder to you and your children not to spend money unnecessarily in order to afford what it is that you really want.  

 

Storing Money in a Savings Account

 

Of course, there is also the option of a savings account. Let’s look at the advantages that this way of saving offers:

 

  • It’s Safer

Obviously not leaving cash around the house is more secure and eliminates the risk of that money being misplaced or stolen. You are guaranteed access to that money should you wish.

 

  • It Grows Your Money

The greatest benefit of saving your money with a bank is the growth of your money. Not only will the amount accumulate, you will earn interest on the amount in your account, growing it over time.  

 

We think the idea is to do both

There’s no harm in sparing some small change that wouldn’t otherwise go a very long way – this can be put towards smaller expenses to treat yourself; like a new pair of shoes or a weekend of activities. When it comes to saving for bigger expenses like a vacation or a car, a savings account is probably the way to go. This is simply because larger amounts are being put aside. It’s all about what works for you!

new one pound coin