We have a piggy bank in our house. Actually, we have two. One is a pink ceramic pig that belongs to my daughter, while the other is a white jar. I get the white jar.
Over the years, there have been times when money has been tight. In those times, when I want something that appears to be beyond my budget at the moment, I use my piggy bank.
The piggy bank approach is just like the one my daughter uses when she wants to save up for something. She makes little bits of money here and there, and they go into the piggy bank. Since I don’t have the delight of an allowance (at least not one that someone else will give me), then I can’t put that into the jar. However, I do put savings into the jar, and I put in virtual savings too. I walk down the street and want to get something from the store for dinner. Instead, I put that money into the jar. Over time, it adds up.
The other trick to the piggy bank is that the money in it stays at home. If I put money into my wallet gradually, it seems to leave fairly quickly. All of the little wants and needs come to the forefront of my mind. I am one who can’t let twenty dollars burn a hole in my wallet, so it gets spent.
The other half of the piggy bank approach is that I do get a little bit of an allowance from myself. My husband and I agreed a long time ago that each of us would get some discretionary money each month. That way, no one gets irritated at anyone else for spending on frivolities. Even if it’s just a little bit of money per month, I have the option to put it into the piggy bank for another time.
Now, the piggy bank is in addition to the other savings plans that we have. We have retirement and education savings plans and we also have an emergency fund. We have short term savings for expenses that we know will come once or twice a year. However, the piggy bank is for small wants and needs that are more than that. Instead of buying something on credit, I save for those small wants so that they do not add up to debt.