30 Day Rule of Savings - Buying on an impulse

This is a comparatively new concept which is fast becoming popular among those who have a strong desire to save money. As you rethink the things in life, which are those things the buying of which you regret? Most probably, there are at least some of these things. According to the 30 day rule, you commit to saving money for at least 30 days before making any purchase, other than what is absolutely necessary of course. It actually saves you from making big purchases that you can come to regret later.

According to those who have tried out this rule, you can easily save up money by the end of 30 days. Additionally, you’ll have created the habit of saving, which is going to help you out long term. For instance, before making any unnecessary purchase, you’ll think about it and not buy it on a whim and regret it later. You’ll value your money and not let emotions take you for a rough ride. Yes, the 30 day rule for saving money is only a concept, but it is a powerful one at that. Many have benefited from it by following it for 30 days, and even beyond. How about you?

Buying on an impulse
Buying on an impulse means you buy on the spur of the moment. You get little time to think about your would-be decision, or maybe you want the thing so much you buy it anyway without giving it much thought. Impulse buying, according to research, stems from spontaneous or random emotions or feelings which you have at the time of buying something. These are triggered by either seeing a certain product.

For instance, you see a bag of potato chips and immediately remember its spicy taste and crunchy bites. This is pretty much the same for items like art, clothing, jewelry, cars and pretty much everything. Did you know that 80% of all purchases are done on an impulse?

Did you know that most of such decisions lead to some form of financial hardship? Additionally, such decisions give rise to family problems, relationship issues, an increased feeling of guilt and of disappointment.

The 30-day rule helps you to avoid all of these.

Here’s what you have to do- A step by step guide
When you feel like buying something on a whim, stop yourself. Put it away and delay the decision.

After removing the item or temptation, note the item in a notebook. This should include the name and nature of the product, where you found it, the date, and the price.

Make it a commitment of thinking over the purchase for 30 days. Determine if it is a need or a want. Give your reasons for deciding so.

Till the 30 days are up, put the money you’d have spent on the item into an interest-giving account.

After 30 days, think whether you still want to make the purchase or not. If you want to, remove the amount from the savings account. However, do remember that you won’t earn any interest on that amount. Additionally, there may be penalties and limitations on withdrawals. If you don't want to buy, leave the money in the account and let it earn you more interest!

This is a simple yet powerful concept. It breaks bad habits, builds wealth and also saves you money!

How To Save or Invest Money - Savings or Investing?

Even seasoned investors sometimes have trouble deciding where to put their money: in Savings or in Investing. The thing is that these two fulfil different functions and fulfil different needs. For instance, if you want to grow your wealth, investing may seem like the better option. And if you want to save your money, going for a Savings account is certainly your best bet.

Why people get confused

Basically, it is all easy to understand, and yet many people still get confused. One of the reasons for this is that either way, people are parting with their money, even if for a short time. This makes many people indecisive, something which is important especially if you want to go down the Investing path.

These are the common questions people have about Savings and Investments.

What is investment?

What is savings?

Where should one invest?

Where should one save?

The problem is that there is no one answer for everyone. It all depends on your individual needs and financial plans for the future.

In this article, we shall be giving you a basic know-how of both savings and investments, what their differences and benefits are, and how you can use them.

First, let us learn about Savings.

What is Savings?

Basically, saving is not spending your money, or rather the money you do not have any desire to spend. Now, this has many benefits. For instance, if you have saved enough, you will be able to deal with healthcare and other situational crises better than those who don’t save. Saving can also enable you to splurge now and then. While you may not be able to buy a car with just your savings, you may be able to splurge on pretty big purchases from time to time.

What is Investing?

Investing refers to the processing of earning money or building wealth through buying assets. This can be for the short-term as well as for the long-term. Investing is far more risky than saving money yourself, but the rewards are greater as well. There is always risk when you are investing, but know that the best investment instruments come with a certain safety margin, generally as assets. The best options for investment are stocks, real estate, bonds, mutual funds, and others.

Benefits of investing

There are several benefits in Investing, despite its obvious risks. And look, even saving has some risks, although such risks are different. For instance, you may believe what you have saved up is enough, but during moments of need you may find your savings is not enough at all. Now, let us see the benefit of investing.

• Your money creates money: When you invest your money, the same money earns you even more money! Isn’t that magical? This happens due to the increase in price or value of stocks, mutual funds or other instruments you own. Thus, you earn a profit when an instrument you own can be sold at a higher price than what you bought it for.

• You save tax: When you invest for the long haul, you save on taxes.
  
  
• You benefit with compound interest: Compounding is said to be one of the wonders of the modern world. Rightly so, because it allows your invested money to keep growing in mathematical progression. This gives you a big profit over time. Compounding creates wealth for you, and doubles it in much less time.
  
  
• You stay ahead of your personal finance yardsticks: If you are new to investing, it shall allow you to buy things others cannot. Besides, your investments work as a safety net during unforeseen emergencies.

The Real Difference between Savings & Investment

Saving only preserves your money, but there is no growth to that. Investment makes your money grow over time. Thus, your money works for you, and that is a huge benefit! Yes, there is little risk in Savings and there is considerable risk in Investment, but it all matters what your financial goals and plans are and what your risk tolerance level is. Investing gives you higher returns over time, which savings does not. Savings is for a shorter time while investment is for a longer period of time.

10 Things You Can Start Doing Today to Slash Your Fuel Costs

Recently, the Indian Government announced a rise or hike in fuel and gas prices across India. This has understandably upset people from all over the country. A hike on fuel price means that the price of essential commodities shall increase as well.

Now, you can’t bring down fuel prices, but you can control your own fuel spends, and thus bring down your own expenses. If you have a vehicle, you certainly want to know how you can slash down your own fuel costs. This is what we shall cover in this article.

India might be the world’s 4th biggest consumer of energy but has a low per capita energy consumption. Each year, more and more people are buying private vehicles, which leads to an overall hike in petrol and petroleum prices. Just in the year 2017-2018, there was a huge 5.31% hike in their prices. To meet increasing demand, the Indian government back then had to import more fuel than before. Did you know that 80% to 90% of the country’s income goes for the purchases of or meeting the bills of various petroleum products?

Now, all that was background information. What can you do to bring your own fuel costs down?

10 things you can start doing today to slash your fuel costs

1. Shake up your driving habits: Perhaps you already know that when you drive smoothly and press on brakes gently, you lose less fuel. Likewise, you lose more fuel when you are in the habit of driving fast and slamming on brakes. Driving on wrong gears gives you this same problem.
   
   
2. Service your car: A serviced car consumes less fuel. Generally, cars require servicing per 10000 to 15000 km once a year. Thus, if your car is well-maintained, you end up saving petrol! This even reduces your car’s getting wear and tear.
   
   
3. Change your filters: If you periodically change your vehicle’s filters, you can be rest assured that it shall be using precious fuel more carefully. Apart from changing these regularly, you should also change these if the car has been driven over a dusty or sandy area.
   
   
4. Don’t give it too much load: The more load your car has to carry, the more it will be compensating with an increased fuel consumption. Thus, whenever you can, don’t let it carry too much weight.
   
   
5. Check tire pressure frequently: Did you know that a fall of tire pressure, even by a small amount, can lead your vehicle to mess up its mileage. To save on fuel, you should ensure that its tires have adequate pressure.
   
   
6. Don’t use the AC so often: Each time you turn on your car’s AC, you end up consuming more fuel. Of course, you may need your vehicle’s AC during summer and all that, but when you do not, do consider turning it off. It’ll save a lot of fuel.
   
   
7. Stop when the red light tells you to: When you’re at a traffic signal red light, you’ll see many cars still running their engines while waiting for the green signal. Don’t be like them. They’ll consume more fuel, but not you. Just turn off your car at red lights.
   
   
8. Use Google Maps more often: When you don’t know the route to your destination, you end up taking more detours and ‘shortcuts’. And as usual, you exhaust more fuel than necessary. So why not use Google Maps during the journeys? It’ll take you to your destination faster and save you fuel money!
   
   
9. Don’t travel during rush hour: Let’s face it. If you dare to travel during your car, you will be caught in several travel jams. If you can, try to travel when the traffic is light.
   
   
10. Get a fuel Credit Card: If your main goal is to save fuel, you should absolutely get one of these! These give you free fuel. It’s true. You can use its points for free fuel.

What is the Best Saving Option for Retirement: NPS or PPF?

Retirement is a reality that everyone needs to think and plan for. After all, at the end of our job life, we have to retire and for that, we need to have saved up considerable sums of money. Why? Well, after you retire, probably your only source of income shall be your savings.

Retirement is not always a stressful concept, as long as you plan for it. After all, retirement means you’ll finally have time to enjoy your life, go on dream vacations, and ultimately enjoy the money saved up from your life’s hard work. But if you don’t have enough saved up? You probably have to work more years despite having aged, be stressed continuously, and generally not be able to enjoy life.

Apart from not having saved enough, there are two things that can break your dream of a good retirement plan. These are inflation and longer life expectancy. Rising inflation means the value of money you are saving up shall be lower during retirement. More life expectancy means you’ll need more money down the line.

Keeping these in mind, the Indian government has several retirement saving options available to everyone. These options just require you to develop a retirement corpus or egg nest or safety net, whatever you may want to call it, out of your own income down the years.

These are especially for those who are not under the protection of government-aided social security measures. These retirement savings options are tax free to encourage more people to save up.

These two options are:

• Public provident fund
• National pension scheme
  

Both PPF and NPS are covered under Section 80C of the Income Tax Act. You can thus claim tax deductions up to Rs. 1.5 lakh if you invest in any of these.

Similarities between NPS and PPF

• Both are retirement saving schemes
• You have to open an account to start investing
• Comes with certain tax benefits
• Long-term lock-in period
• No tax on returns
• No tax on the final corpus

How To Reduce Home Loan Interest Rate?

When you need to get a new home loan, you need to provide a number of documents. This differs, depending on the nature of your occupation. Salaried applicants have to provide salary slips as evidence of their financial ability to pay back the loan. Self-employed individuals need to provide banking details and ITR records. After taking the loan, you not only need to pay the principal amount in full, but also the interest and the MCLR.

Housing Loans and LAPs

There are two kinds of home loans: Housing loans and LAPs.

Housing loans are what we normally consider home loans. LAP, or Loan Against Property, is where a property is on the line when you wish to get a new loan. In the case of a housing loan, the collateral can be a sum of money, but in the case of LAPs, the collateral is always property. As you can understand, the amount of money is proportional to the property’s value.

Of course, the LAPs are riskier. In case one is unable to pay back a LAP home loan, the chances of recovering the property are not great.

The Home Buying Process - How to Reduce Home Loan EMI

So what happens when one wants to buy a new home with a loan?
Well, first you’ll need to search for the property you want, of course.
Second, you approach the seller of said property and express your desire to buy it.
However, since you do not have your own funds to buy the property with, you take a loan from a bank of your choice.
But here’s the catch! The bank does not transfer the funds to you. It transfers the funds directly to the seller. Surprise!
This is not a bad thing. In fact, it makes matters easier for you. The bank takes up the job of transferring the money, which you would have had to transfer anyways to the seller.

Here’s an example. Let’s say that you have spotted your dream home and asked the seller what its price is. They tell you that the property can be bought for Rs. 5 lakhs. Not having that much money, you approach a bank. The bank forwards the loan, but not to you. The loan is given to the property seller.

There’s another point to understand here. The property’s documents are not immediately transferred to the buyer. When the bank forwards the loan amount to the seller, he or she gives the property's documents to the bank. The bank keeps the documents and only gives it to the buyer when he or she repays the loan. In case the buyer is unable to repay the loan, the property belongs to the bank.
With such a loan, the buyer can purchase a plot, a plot plus a flat, apartment, etc.
One good news is that you can apply for a home loan at low EMIs. We’ll show you how soon.

From where does a bank gets it money?

Great question! Here’s how it works. Let’s say that you take a loan from HDFC bank. Banks normally have funds ready to disburse for loans. Where does this money come from? Banks can’t print their own money!
They get funds from HFCs or Housing Finance Corporations, which in turn get their funds from the NHB or the National Housing Bank. The NHB gets its money from the Central Bank of India. Money comes from the top to the bottom, but at each step, the bigger bank or organizations watch the ROI that is possible from the investment.
This is where Balance Transfer and BT Savings come in.
What are Balance Transfer Savings?

Here’s an easy example.
Let’s say that a person takes a home loan in 2016. It has an 11% interest rate and the amount of loan is Rs. 45 lakhs.
However, the person now gets a better offer from a second bank, which offers a lower interest rate. Thus, he decides to go to the second bank to get this advantage. It pays to have lowest interest rate on a home loan.

Additionally, as he has already paid a part of the loan in the first bank, he will only have to pay the remaining amount here.

Balance Transfer Your Home Loan at Lowest Interest Rate Through mymoneykarma

BT Savings are calculated in the back end by taking inputs from the customer. The information is conveyed in a note to the customer saying that a certain amount will be reduced in one's home loan EMI. Let's say that the home loan EMI is Rs. 23,000, After Balance transfer, the home loan EMI will be Rs. 21,000. Thus, the total savings for the customer would be Rs. 2000 per month. Therefore, per year, the total savings comes to Rs. 24,000.
mymoneykarma calculates your benefit beforehand and then requests the customer’s consent to go ahead with a balance transfer.
We then convey a list of documents to get started with the process, such as property documents and income documents.
Once this is done, we take the appointment date and time for the documents to be picked up.

6 Important Elements of Your Financial Health

Your retirement savings: No one works forever. After a point of time, you’ll have to retire. It is therefore to save for your retirement since then you’ll have no income. Well, you may have, but it is safer to assume that you won’t have. Thus, by that time, you’ll have a nice nest of funds to fall back on. You should start saving for your retirement, the sooner the better. Saving for retirement is a top priority. Start by saving 15% of your income for this purpose, and your aim needs to be to replace 70% of your income when you will retire. At the very least, match your company’s contribution to your PF account.

Your debt: You can have debt in the form of student loan and mortgage. Know that not all debt is bad. However, debts having variable or high interest rates can be a problem. If you are managing your debts well, you won’t need to worry about them. When you do find out what your debts are, make a plan to pay them off. Use the help of a financial advisor if you have to.

Your income: Always focus on your Take Home Salary as this is the salary that remains after all manners of deductions and taxes. Your take home salary is the best way to measure your income. Your goal, as always, is to spend less than what you earn. It is never sustainable to spend more than what you are earning. If, by any chance, that is what your situation is right now, determine how you can cut down on costs.

Your emergency fund: An emergency fund, as the name suggests, is for emergency situations. If you don’t have one yet, it is time to build one. Start by keeping a bit of cash aside every month in a savings account or in a money market account.

Your credit score: Your credit score is a sign of how likely you are to pay back any loans. Your credit score is based on factors like credit utilization and credit history. It is important because it determines whether or not you’ll get the loan. 300 to 629 is considered to be bad credit score, 630 to 689 is considered to be good, and credit scores above 720 is considered to be excellent. If you want to build up your credit score, you need to pay bills on time and pay back your credit card balance each month.

Your insurance: You insurance coverage may include things like car insurance, home insurance and life insurance. You may also want to get disability insurance. At the very least, you want to have insurance enough to protect yourself from financial loss.

Why You Should Start Saving Right Now!

Fast forward 4 months, the country is in a pretty bad shape. The economy is pretty shaky, and people fear for their livelihood. That is right, because many companies are taking up a wide range of cost cutting measures to curb losses. Unemployment count around the country is through the roof.

All this means that we need to start stockpiling cash right now. We do not know when the situation will return to normal. Yes, vaccines are coming, perhaps within a few months. But that’ll still take time to reach everyone. That’s why it is important to hoard cash.

Why do you need cash in hand right now?

Unfortunately, we do not have a crystal ball to foresee the future. We do not know how the rest of 2020 and the coming 2021 will shape up. However there are a few things we do know.

   The Covid-19 situation is getting worse in India

   Unemployment rate is getting worse as well

   States that are hit hard are implementing state-wide lockdowns

What does all that mean? It means that the second half of this year could easily be more financially devastating. Not to ruffle your feathers, but more people can be out of job in the second half. Such a situation can continue well into the next year.

This is why you need money in the bank right now. Even in the USA, lawmakers are debating whether to add another $600 in unemployment benefits to save millions who are out of work. That boost is set to expire soon.

If the boost is not extended, it can spell disaster for many. The situation in India is actually worse. The unemployed do not have a government-issued financial safety blanket in times of disaster. Those out of work shall have to draw from their savings to pay for expenses.

However, is that the only reason for saving up right now?

By no means!

The sudden coming of the Covid-19 has badly affected the stock market. It has recovered somewhat, but there is still a threat of a second market crash. Having cash on hand will help you.

Having cash on hand will enable you to leave your investments alone, thus enabling you to ride out the economic crash and saving you from permanent loss

 It’ll help you to invest once more when situation normalizes

Back in March this year, investors who had plenty of cash on hand had adequate opportunity to load up on good stocks. If there’s a second crash coming, you want to have a fair amount of cash on hand as well. This is why it pays to load up on your bank account now. Take the funds from things you do not need, and save them up. You are saving money since you are not commuting, going out for movies. etc. Use those to fatten your bank account.

You may not like this, but the second half of 2020 could be as rocky as the first half, perhaps even more so. It pays to have cash on hand to fall back on to make it through. In fact, if you take all the right steps, you can capitalize on some fantastic investment opportunities.

Benefits of Family Health Insurance - Save Your Savings

There are numerous reasons why people stay away from health insurance. For instance, a lack of knowledge regarding the existing insurance products/services in the market and many misconceptions about health insurance in the market can lead you to be complacent or paranoid about getting a family health insurance.

To beat the increasing rates of medical care, a health insurance policy becomes very important. Medical emergencies might not only wipe out your entire life savings but also cause the stress of arranging for additional resources if required.

Numerous individuals and families have gone bankrupt while battling with rising medical expenses. Not having adequate health insurance not just leads to a financial drain but also affects the entire family emotionally.

mymoneykarma tells you the different reasons why you should get family health insurance.

Save Your Savings

Almost all medical treatments require a lot of money, and many medical procedures are insanely expensive. God forbid if you have to go through a surgery, it is likely to finish off your entire savings, or you may have to take out a personal loan. A comprehensive health insurance policy can save you from going broke.

Secure Your Family's Health.

Emergencies do not come with warnings. A sudden illness in the family can ruin your mental, physical and financial health. This is why you should buy health insurance for your family.

Avoid Hospital Troubles

Most health insurances in India have cashless treatment options. This saves you the trouble of arranging for finances, waiting in long hospital queues for insignificant things and other hospital-related difficulties. Also, the best health insurance plans have tie-ups with excellent hospitals with world-class healthcare.

You can be ensured of getting the best healthcare for you and your family. A family health insurance plan reduces tension and stress caused on account of hospitalization.

Save Your Income Tax

A health insurance policy is a means of savings and a safe investment option. It is a tax-saving instrument that significantly contributes to the reduction of tax deductions.

Affordable Healthcare for the Entire Family

By opting for a family floater option, you insure yourself and your family (spouse, two children, and parents) under a single policy at a reasonable cost. Many insurance companies today also provide health coverage for day care procedures - ensuring that you go back home to your loved ones at the earliest.

Your Family Comes First

You love your family and would want them to be safe and secure always. Buying a health insurance plan for your family is the best way of ensuring a protected life for them. This way, they can be prepared for any kind of medical emergencies that can occur to them.

Optimize Your Savings - Long Term Goals

Budgeting systems help us prioritize our financial goals. We should utilize these budgeting systems to make a spending plan that optimizes our savings.

There are several budgeting systems designed for different spending and saving pattern. Each person has different levels of income, areas of expenses and priorities, and your budget should suit your purpose. You should go through the intricacies of these budget plans and choose the one that caters to your needs.

For beginners, the 50-30-20 budget system can be a great start. This system recommends that you allocate around 50% of your total income towards your necessities, 30% for your wants and the remaining 20% for savings and debt settlement.

As you figure out a suitable budget plan and integrate your spending with it, you will have to look for ways to save for your financial goals.

Daily savings
You could tweak your daily routine to save a penny here and there, and over time they will add up to become a handsome amount in your savings. Here are a few tricks from mymoneykarma to help you save more on your daily expenses

Automate
Most banks provide the facility of automatically channelizing your money towards your savings. You could create Recurring Deposit accounts and set up a standing instruction to transfer a fixed amount from your salary account every month.
Some banks also have this feature called "auto-sweep," which automatically sweeps money from your account and creates short-term temporary Fixed Deposits. This feature does not require your authorization each time; it sweeps your money off your account whenever it finds a substantial amount in your savings account.
Auto-sweep FDs do not have a lock-in period and you can withdraw the money using your debit card whenever you want. This is a great way to earn interest on money that you are not using at the moment; moreover, it doesn't require any effort from your end.

Manual Actions
When you are running on a tight budget, abstain from using credit cards. Calculate your daily expenses and use cash for all transactions. Parting with hard cash is difficult and will stop you from overspending. Go back to your childhood days and start using a piggy bank again.
Empty your bags and pockets at the end of each day and collect whatever extra change is left with you. Put the amount in your piggy bank and deposit the collection into your savings whenever you have a significant amount.

Grocery List
Prepare a little before you go grocery shopping. Conduct an inventory check and check your pantry thoroughly to make a list of things you need. Stick to the grocery list and purchase only the things that you need. We often tend to buy things that we do not need and end up wasting them as well as the money.
A list can keep such wastage under tight check. Many supermarkets offer discount coupons and loyalty programs - collect them and use them to save more. Credit cards often have tie-ups with stores and offer discounts on purchase. Check if your credit card can help you maximize your savings while you buy groceries.

Dining Out:
Don't scrimp and save by sabotaging your social life, especially if you are a gregarious person. Mingling with friends and eating out is a crucial part of socializing; if you restrict yourself from it, you will be utterly frustrated and might end up overspending by submitting to your temptations.
Cut down your frequency of dining out, but don't stop it entirely. Stick to your budget when you dine out. Order carefully so that there isn't any excess. Restrict yourself to smaller portions. Order appetizers or split an entree with someone so that you stay within your budget whenever you eat out.
Quite a few credit cards provide dining privileges where you get a discount on restaurant bills. Check out for offers on websites like Dineout and Zomato - you might find attractive deals and discounts.

Entertainment:
Nobody would like to miss out on a new movie or a visit to the new amusement park in town. However, these could sometimes be quite expensive. Would everyone happily agree to stop themselves from these? I think not. Look out for discounts on tickets - many credit cards offer attractive deals on purchase of entertainment packages.
There are websites like Nearbuy and GrabOn that help you save money on such entertainment costs. Paytm and bookmyshow often provide discounts or freebies on purchase of movie tickets. If your way of fun is a bit on the nerdy side, you could look for free days at museums, observatories and national parks.

Why Should Every Child Have a Piggy Bank?

 Parents are the most important people in the life of children. Teach your children a lot of good habits. A growing family witnesses an increase in expenditure. This is the time you must educate yourself as well as your children on the benefits of saving money. This is where the importance of a piggy bank kicks in.
What is a Piggy Bank?

A piggy bank is not just a storage box for thousands of rupees. It symbolizes the essential habit of saving money. Putting a coin or two in a piggy bank has been fun for most of us in the olden days. However, nowadays parents are taking piggy banks more seriously because they have realized the utility and importance of piggy banks to teach children how to save money.

One of the most effective ways of parenting is teaching your child the value of money. Saving money is an essential skill you need to have in your life. Buying a piggy bank for your kids at an early age and encouraging them to fill it up with money can inculcate great saving habit in your children. Ask your children to drop the coins or currency notes received as blessings from their aunt, uncle, grandparents, etc. into their piggy banks. Even if they are young, start budgeting for your kids. The best thing they can throw into a piggy bank is leftovers.
How Do You Encourage Your Children to Save Money in Piggy Banks?

Piggy banks are fun elements for children. They’re like toys that inherently attract children and hence encourage them to save money as they cannot understand the concept of real banks or savings account. Here is the list of things you must keep in mind while educating your kids about piggy banks.

• Gift your children a piggy bank on their birthday.
• Teach your kids about money and its importance.
• Make it a ritual to fill it with a minimum amount weekly.
• Set some financial goals for your children.

Give them a target, and if they reach it, gift them with something like a toy, a video game, or increase the amount of the weekly ritual.

Make a plan on how the money must be spent.

The Importance of Piggy Banks

Helps in Organizing Loose Change: You might often end up losing all the change under the couch, in your car, or under your pillow when you go for shopping. Piggy bank is a better way to organize this loose change. You can also save the right amount of money which go wasted every time.

Helps in Adding up Money: Setting up goals is one crucial thing you must do for your children. What do children like to buy usually? It can be a bicycle or a video game or a beautiful doll. Make them save every penny to purchase the toy they desire. This would keep them motivated toward the assigned goal. Also, it visually shows your children how close or far they are from achieving the goal.

Motivates You by Setting a Great Example: Piggy banks are effective ways to teach youngsters in the family about the importance of saving money. You might not save an enormous amount, but indeed you end up saving something with which they can buy a new toy or a new video game. This drives the children to save more and more, which benefits them in the near future.

Helps You to Save Always: “A penny saved is a penny earned,” said Benjamin Franklin. Savings must be a top priority for your children. It must become a habit for your children to save money. Tell them the purpose and importance of piggy banks. A piggy bank is just like a foundation for great savings. It’ll surely help inculcate a saving habit in your children.