In recent years, we have seen the cryptocurrency sector grow exponentially as well as the proliferation of digital banking alternatives like Monzo and Revolut, all increasingly calling into question the relevancy of coins, pound notes as well as bank branches. Nevertheless, with so much effort having gone into the designing, producing and releasing of the new one pound coin, it appears that it still plays an important role in our economy, but what about when it comes to the way we save? What role does small change play then? MoneyBoat takes a look.
Using a piggy bank
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:
Preventing waste: How often do we just leave coins lying around the house or loose in a bag or pocket? Pop them in a piggy bank, and over time they can then be stored and contribute to future savings.
It’s easy 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 Although we are actively saving this money, we are less likely to feel like we are restricting ourselves.
Educational value: If you have young children at home, the visual aspect of a piggy bank is extremely important in teaching your children how to appreciate the value of money.. 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 date, they will start to better understand the importance of saving.
Putting money in a savings account
Collecting coins in a piggy bank is of course, not the only way you can save. We take a look at the main advantages of putting money in a savings account:
It’s safer: Not leaving cash around the house is definitely far more secure and eliminates the risk of that money being misplaced or stolen.
You can accumulate interest on savings: there is the potential to earn a considerable amount of interest on savings over time.
Avoid unnecessary debts: With a little bit aside in your savings, you can avoid the need to use payday loans, particularly if you don’t think you could fully afford them
We think the idea is to do all!
There’s no harm in sparing some small change that wouldn’t otherwise go a very long way – to put towards smaller expenses, 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. It’s all about what works for you!
If you’d like to know more about MoneyBoat loans then you can check your eligibility here.