If you are 30 or above, chances are that you were taught from a very tender age to save in piggy banks. That small box where mama or papa asked you to drop money and leave it until after a long time, sometimes many months or years. When its that time to take back your savings, the piggy bank is broken - often with much excitement and anticipation - and the saved money is counted. That is often the end of that savings and if you are to start again, a new piggy bank/box is provided. We enjoyed it probably, but things have changed a lot.
Today in the world of finance, many players have emerged well and beyond the wooden piggy box. Blockchain technology with its cryptocurrencies have revolutionized the way we make, save and use money. While some old methods still work, the issues I want to look at in this article is important and can be summarized in this question:
- Are piggy banks still relevant or should we switch to cryptocurrencies?
While this article is by no means financial advice, it gives us something to think about especially if one still saves with the piggy.
Piggy banks - The positives
Piggy banks served their purpose during the time they were popular. Of course, one would not deny that from an early age, it helps kids to develop savings culture. Most of these kids grow to become adults that make better financial decisions. So the piggy method of saving helped many people today to learn how to save.
Additionally, piggy banks helped to instill the idea that big things start small. Dropping in small coins of probably little value into that box over time will accumulate and become big money. Of course in times of financial need, the accumulated savings can be used to solve a problem.
There could be many other benefits of saving through the piggy system. But then, we also need to look at the down side of piggy box in line with current financial realities
The downside of Piggies
Looking at the piggy system of saving I have noticed a lot of things that are probably wrong with it. They include the following:
Piggy money does not make more money: The rich will always tell you that your money should work for and make more money. It seems this would not be possible with the piggy bank system. Because you continue to drop money into a box and that money does nothing there. It simply sits idle, waiting for the future when the bank is broken. Basically, the only way that money grows inside a piggy box is to put more money. In this time of many crypto saving opportunities - like crypto staking - that guarantees return in savings, the piggy system really makes you miss out on this.
Financial Uncertainty: While as kids we enjoy the surprise of having an unknown amount of money, an adult today that saves with piggy and relies on it to solve big problem will be in trouble. When you put money into a piggy box, there is no financial record of it. You actually have money, but do not know how much. Can you fully depend on this type of savings to pay rent, school fees, buy property or even do other things? You know the answer, right?
Piggy money is not safe: The piggy box is usually hidden away somewhere in the room - where we consider 'safe'. But then, is there really a safe place in your house? Is there a place in your room, that cannot be destroyed by fire, accessed by some intruders - and in some cases- protected from rodents? What happens to your piggy bank if there is a natural disaster such as the recent cases of flooding in some parts of the world? If you survive it, will your savings in the piggy make it? Again, it seems you know the answers.
Sudden change in the financial System: What if the government make laws that affects paper money. What if there is a sudden change in the bills you use in your country. What happens to money in the piggy? For example, in my country Nigeria, the government suddenly announced that it will reprint some Naira notes and all old notes will no longer be accepted as legal tender beyond December 2022. Right now, there is panic among those that have stashed a lot of cash somewhere outside of the banking system. So if you had recently started saving in piggy, or you have saved for a long time, you have a short time from now to break your piggy bank and change the money. Your plans have been spoiled, isn't it?
Inflation is a problem for piggies: In my country again, inflation is a big problem. Recent data shows that it is nearing 17% which is really high. So our money continues to loose value against the US dollar. So keeping away money for a long time in a piggy will make it loose its value over time. The exchange rates in my area are now scary.
Pigges were nice - Crypto (Hive) is the future
Personally, I believe that piggy banks served their purpose. Maybe they are still more useful than I think. But looking at the downsides above and the enormous opportunities offered by cryptocurrencies, I have long destroyed my last piggy bank.
Cryptocurrencies offer us limitless financial opportunities to increase money through savings. There are many crypto products that offer much more returns than a piggy, sometimes even over a short savings period. The Hive blockchain is booming with such opportunities through many dapps that offer you something in return for keeping away some crypto.
Do you know that if you save your Hive dollar (HBD) in the savings section of your wallet, you earn an amazing 20% Apr? The information is right there in your wallet. Here is a screenshot from mine below:
Conclusion
If piggy banks still work for you, then you do what works for you. I have come a long way in the crypto sector to appreciate its numerous savings opportunities. I will continue to explore the ones on this Hive platform and take advantage of them.
Lets talk
have you ever used piggy banks to save? Do you still use it? Share your experiences with me in the comment section
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Yeah,even till now I still save some small money that is been given to me as gift for running some errands, although I don't really have much money but I still store my money in form of crypto by buying coins like hive,usdt and others for future use.
For me, its crypto all the way. The future of money is decentralised. Hive on its own has lots of products designed to reward longterm savings. So crypto is all the way. Lets save more.
Yeah, crypto I see is the best.
You know I have used piggy banks but it didn't work for me at all, i remembered several times i used the money without saving enough. Sometimes, i open it without seeing money inside even though, i kept it save. I no longer think of such banking when i know i can power up my hive, i can save my hbd. I can save in crypto for more reward. Thank you @fokusnow for reminding us the need to save in a smart way.
I once did that, hahahaha. I broke the savings after two weeks. And later, i kept on dreaming that i still have the money. I believe its better to save through crypto and explore all the opportunities we see today in defi
You are right, we need to follow the moving train {crypto)
Sure that is the only way forward for me. Thanks for engaging well with my content
Your analysis is superb. This article is highly appreciated because it's timely. This time, Fiat currencies are loosing their values. But crypto is getting relevant per day. Thanks for sharing
@sammyhive. That is very true. Saving in fiat is very risky now. Crypto offers something much better and modern
That's right. Crypto is the modernized way of transaction and trade
I heard of piggies savings but I didn't make use of it. Seriously if is still relevant today, I think some children in the house will do away with the money. I prefer Savin in my wallet than bank itself
Oh you never saved with piggies? Waooh. It was popular during our childhood years. It was a way for parents to teach their kids about the importance of saving. But today, their are better ways to save - crypto is one of them
I don't joke with piggy bank, before you know what is going on you have saved a hug amount of money
I have used it before. Back then I will under my parents bed because I think it is safe there. I will save with it but I will always broke it whenever an hungry 😀. I even remembered using broom stick to bring out some of the money when ever I need it. All this were back then, during childhood. There has been alot of advancement when it comes to Banking and saving. The blockchain technology is doing a great work in that regard.
Hahahaha. You used broom to 'steal' from your savings. That was funny. I think I also did that. Eventually I broke the box at least once to solve immediate problems. Am sure today, there are better ways of saving with defi @herculeand
Although piggy Banks were of benefit to our grandfathers, it has now appeared to be outdated
Modernity has taken over, we can now safe our money with confidence
Great write ✍️ up
I always have piggy bank I started saving my money with piggy bank in 2012 and by 2013 I saved 9000 niara which was my house rent for 12months then, most of our conventions I looked beautiful in my new wears and piggy bank made it possible, you won't even know how you saved a hug amount of money if your consistent no matter how small.
One woman told me that she is a landlady today in Lagos State with the money she saved on piggy bank.
Sadly I don't have any piggy banks now but is my number 1 needs that I will get in my next shopping.
Honestly I will encourage all my friends to have one piggy bank under their bed.
Nice article. I vividly remember the box saving method when I was a little boy. My aunt was a specialist in that.
Now to the meat of matter, I believe that piggy bank/box saving has paid its dues. It is way below par when compared to saving in crypto form.
However, it may not be wise for one to have all his savings in crypto form in case of emergency which may come when the market is heavily bearish.
I have never saved with piggy banks. I don't just like it.😊
In conclusion, I prefer saving in crypto because there are higher chances of the money doubling or even thrippling. @fokusnow