Last Updated on May 31, 2023
Piggy banks are always seen as a simple and uncomplicated method to teach kids how to save. However, even adults and older adults can still utilize this seemingly elementary way when saving for low-priority, short-term goals.
This activity is best suited for those who are starting to develop their discipline to save. It is also a fun exercise even for those who can allocate a higher amount from their existing budget.
Related: Don’t Wait Until You’re Rich Before You Start Saving
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What is a low-priority, short-term goal?
Low-priority, short-term goals are items and activities that are not urgent but are still on your bucket list for the near term. It may be to buy a new pair of running shoes, a concert ticket, Christmas gifts come December, and many more.
Whatever it is, it is important to remember that you put a name to your goal, an amount to target, and the potential completion date. Missing one of these three criteria makes your goal incomplete.
However, since you are only aiming for a low-priority goal, the completion date can always be adjusted until you reach your target amount.
For example, I usually utilized my coin bank to fund my running hobby back when I was still in Manila. My target amount is P1,000 to pay for my race registration tickets every month.
However, if I fail to reach my desired amount, I will have to wait until the next month before I can join. The discipline I built through this piggy bank for adults method has been integral to who I am today.
What kind of piggy bank should you use?
Similar to a child’s piggy bank, you can buy one from your nearest shopping center, use a native bamboo coin bank, or just an empty Stik-O jar (which I currently use).
Just make sure you place it in a secure location that will help you remain disciplined and motivated. You can put it under your bed, inside your cabinet, or on your working table. Just keep it away from potential kupit.
Choose your preferred denomination
Now that you have established your goal and readied your piggy bank, you can select your preferred coin or banknote (paper bill) denomination.
When selecting which kind of money to set aside, you must choose a less circulated amount to avoid placing all your cash on hand in your piggy bank.
I prefer P10 coins because they are not as common as the P5 and P1 coins but are more common than the P20 coins (a sad reality of pesos losing value).
Some people use the “Invisible P50 Challenge,” where you will automatically hide every P50 bill that comes your way. I also tried to do this once, but when I paid P1,000 and was given 18 pieces of P50 bills as a change, I realized there were better amounts to choose from.
Others prefer the more elusive P200 bill as their desired amount, especially when they aim to save for a bigger purchase. However, since they are targeting a low-priority item, they will have to wait a little bit longer until they reach their desired amount.
How long should you save using the piggy bank?
The duration of using your piggy bank will always depend on your goal. Some goals may require a few months, while others may need more than a year.
Remember that you are only saving for a low-priority goal, so you don’t have to try very hard to reach your desired amount as fast as possible.
Expert Tip: Exchange and Deposit
Since you are saving using coins and banknotes in your adult piggy bank, you are basically removing some money from circulation, which can be a problem if more and more people do it.
The Bangko Sentral ng Pilipinas (BSP) has set the legal tender for Philippine money, specifically coins. For example, P1, P5, P10, and P20 coins have a legal tender of P1,000, which means they can be used to pay financial obligations up to that amount. You may read this explainer for a better understanding.
For example, I am using P10 coins as my denomination of choice. Since its legal tender is P1,000 only, every time I reach a thousand pesos, I deposit it in my bank or exchange it with some shops and stalls since they all love coins.
After exchanging my coins for paper bills, I usually deposit them using a traditional bank’s automatic deposit machines. Afterward, I transfer it to one of my digital banks and add it to its specific stash or goal.
What to do next?
Once you reach your goal, you can repeat it over and over to finance other goals.
Though I can always save for these items and include them in your monthly budget, I still love doing this method since it gives me enough time to save for something that is not in a rush to get completed.
This exercise aims to develop consistency and discipline in handling money and the patience to wait until the right time. It is also one of the things that helped me avoid impulse buying.
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