Saving in an alkansiya or piggy bank has always been part of the Filipino culture. Our forefathers have been saving money at home using whatever materials were at hand: bamboo tubes, biscuit tins, plastic jars, and even hollowed out, dried coconut shells. This is also how most of us were first taught to save and secure our money.
In this modern age, however, where banks and mobile wallets are just within everyone’s reach, is saving using an alkansiya still wise? Well, yes and no. First of all, supporting a child in learning to save money is hands down a great idea. Go for it! Get a cute coin bank or simply use a traditional alkansiya. Saving money is the most basic financial skill your child needs to learn.
But this does not mean your child should stay with a piggy bank forever. Once the coin bank is full and you need to break it and pour out its contents, praise your child and don’t get another coin bank. That’s because you’ll need to teach your child to level up and move on to the next step: a savings account. There are several good reasons for this:
Safety and security. Cash that is kept at home is not that secure. It can be stolen, degrade with time, or even lose value. From time to time, we read news about those who lost their money after storing it at home or after pests damaged the bills kept in cans or drawers. So yes, by all means, encourage your child to use a piggy bank for a while, and when it’s full, put the money in a savings account.
Savings accounts are life lessons. Having your child open and maintain a savings account in a bank is the first step towards a financially secure future. As they grow older, they will learn more financial skills along the way—such as wise spending, sticking to a budget, investing, and getting insurance—that would protect them from poverty and debt, allow them to build their wealth, and secure their future for a lifetime.
Literacy in a digital world . The world’s financial system has shifted towards digital since the 1980s. Anyone who wants to make a living, earn money, and build wealth needs to understand and use digital banking. Teaching your child to use a savings account now will prepare them better for the digital world of finance.
Fortunately, it is now easy for parents to open a savings account for their children. One example is the BDO Junior Savers Account. With minimal requirements and an affordable initial deposit and maintaining balance, it’s a breeze to visit a bank branch and put the money from the alkansiya into your child’s bank account.
The bank even makes it easier for you to help your kids grow their savings through the Junior Savers Plan. This allows you to add to your kids’ savings by scheduling regular deposits using your BDO Online Banking Account. Just set the amount and frequency of transfer and you can easily build their savings and teach them more money lessons.
The alkansiya or piggy bank is part of Filipino culture and heritage. As parents, we can use it as a means to instill the basic value and habit of savings to our children—then when it’s time to break piggy open, let’s put our child on a journey to financial freedom and security through their savings account.