As a child, I made plenty of money. Whenever a tooth fell out, I would receive a coin under my pillow, during birthdays and Christmas there was usually an aunt or uncle ready to part with some of their change for me, and sometimes I would get a cash reward for finishing my chores or just being good.
All this wealth was dutifully saved at home in my piggy bank, which was made of porcelain and was impenetrable. At the end of every year, with great ceremony, my mother and I would break open the piggy bank, and I would be alarmed by how much I had managed to put away. I was actively saving money when I was young.
As an adult, there are many ways that you can save your ‘pennies’. The four easiest ways are as follows: –
Find all your ‘lost’ coins
First, you need to identify the places you are most likely to find some loose change. Occasionally turning out your trousers, checking at the bottom of handbags, purses or wallets and even emptying the various compartments in your car should turn up some coins.
Avoid giving exact change
Another way you can save your pennies is not to spend them. Whenever you are shopping or paying for a good or service, use the money that is in note form. Should you receive any coins as change, keep them aside until you get home.
Select coin denominations for saving
You could decide to select which coins you would like to save, meaning you may choose to save only high denomination coins and keep the lower denominations for emergencies where they may be necessary. You could also add a low denomination note to these coins.
Set a weekly coin savings quota
Setting yourself a weekly savings quota is also an option. For each coin denomination, you decide how much you want to save, and devotedly put away this amount on a weekly basis.
Growing your coin savings
To save these coins profitably, you must apply the same principles as a child with the piggy bank. Find a jar in your kitchen that has a lid, and every time you find or have loose change place it inside this jar.
You need to discipline yourself and avoid spending these coins. The easiest way to do this is to open a savings account, specifically for depositing your coins. One thing that made the piggy bank, so successful was the fact that it was impenetrable. On a weekly basis, or when it is convenient for you to do so, make sure you physically take your coins to the bank.
These savings are not for an emergency or a desired expense. They are meant to be cumulative, allowing you to plan for and possibly make an important purchase at the end of the year.
To make sure that these coins actually grow, make sure that you open a savings account that has no annual fees, and which earns you higher interest if you do not make a withdrawal.