When we talk about piggy banks, we usually think of children. They often use them to save allowance, birthday money and more to make some bigger purchase of something they really want such as a bike or a new pair shoes or a favorite video game.
We help encourage our kids to save all the time but what happens to us when we’re adults? It seems we need adult piggy banks to help us save the way we used to when we were kids. In fact, if anyone needs to save, many will agree it’s the adults who need to work on this and not the children so much today.
Let’s take a new look at the piggy bank concept once more as grown-ups to see how this same principle can help us save.
Does it ever feel like each day that passes makes it harder and harder to save? You want to put away more money but it seems like the value of the dollar keeps going down and the cost of living keeps rising.
The concept of the childhood piggy bank can be used into adulthood as well, just on a slightly more sophisticated level. This can help you save just like you did back when you were child. You can do this with dollar cost averaging which helps you balance out the highs and lows of your stock market holdings.
You do this by buying a predetermined amount of stock at regular times. For example, you might spend $200 per month on shares in a mutual fund. Some months that $200 may get you more than others but you just keep investing the same amount in regular intervals and it adds up. This is similar to the way you may have placed nickels and dimes in your piggy bank as a kid.
Another way that you can use the same piggy bank concept is with automatic withdrawals and deposits arranged through your bank. You can have a certain amount of money taken out of your checking each week or biweekly and automatically placed into a savings account. You can choose a small amount that you will hardly miss anyway and over time, you will be amazed at how quickly it can grow.
Once you see how these piggybank ideas can help with your adult savings plans, you will be ready to start your own savings plan. It’s as simple as a dime in the bank today and you can have more in the pocket tomorrow.