Piggy banks have been around for centuries. They are where generations of children have stored their money – both pocket change and their lifetime savings. Money, in some form or another, has existed ever since the first coin was crafted in the 7th century BC. From rudimentary coins to sophisticated bills with 3-D security ribbons, physical currency has had a good run and isn\u2019t going away anytime soon. However, the use of cash is in a serious freefall.<\/p>\n\n\n\n
Year over year cash payments have drastically declined. This trend was well on its way when 2020 happened and hastened its demise. Take a moment and think of your ratio of cash v. digital currency use. Debit & credit cards, Apple Pay, Venmo, PayPal, wire transactions, Google Pay, Zelle, etc\u2026 The alternatives seem endless, and their use has overwhelmed the once almighty dollar bill.<\/p>\n\n\n\n
Here\u2019s a fun little fact – the most common bill in circulation now after the $1 is the $100 bill. The theory is that it\u2019s due to the fact that people aren\u2019t using cash as much for everyday purchases, and it is instead most frequently used for illicit purposes. <\/p>\n\n\n
If you were teaching your kids about money up to and during the late 20th century, the piggy bank would have been the obvious choice. But fortunately, technology has evolved to catch-up with the financial trends, and the piggy bank isn\u2019t only obsolete, it might be counter productive.<\/p>\n\n\n\n
We have compiled a list of reasons you should be transitioning your children into a digital piggy bank if you want to prepare them for the actual world in which they\u2019re growing up, instead of the world they\u2019re leaving behind. <\/p>\n\n\n
We\u2019ve all heard of storing money under a mattress. It\u2019s a surefire way to ensure that both moths and inflation slowly (or not so slowly) eat away at its value. While it can certainly be handy to have some cash readily available, money is generally best stored in FDIC insured financial institutions. <\/p>\n\n\n\n
The piggy bank is just the mattress equivalent for kids. This is not the way to teach kids how to store their money. Money habits are set by age 7. By age 7 you should transition your kids into learning the ins and outs of the digital currency world. <\/p>\n\n\n
Teaching kids to form good money habits is all about teaching them about spending, saving and giving responsibly. Piggy banks don\u2019t allow children to differentiate or set-aside money for specific purposes. They don\u2019t keep track of deposits and withdrawals, savings goals or generosity. <\/p>\n\n\n\n