US Educational Financial Solutions Answers: Is a Piggy Bank a Hoarder?

Your preschool teacher may have taught you to drop your spare change into a piggy bank. It’s a good way to develop the habit of saving, so why should anyone now think it’s detrimental to the economy?

More than nine million coins are circulating all over the U.S., from pockets to bank vaults. Like red blood cells, everything from the cent to the rare $1 coin needs to move across the market for the small-time economy to thrive. Nevertheless, financial experts, such as US Educational Financial Solutions, explain the idea behind the likely effect of a piggy bank.

Alleged Hoarding

So far, the U.S. doesn’t have a problem with a lack of circulating coins, but some countries do—like the Philippines, which forced lawmakers to push for an anti-hoarding bill, and Argentina, which experienced coin shortage due to hoarding since 2010. Should the U.S. enter a similar predicament, the Mint will simply produce more coins, but experts believe the facility is hesitant to do so these days due to the rising cost of metals.

In Argentina, people hoarding coins seem keener on the value of the metals than of the coin itself. Rising costs of the coins mean bigger return for the alloy peso.

Not So Bad

While there’s some truth to the reports about coin hoarding in some countries, the piggy bank remains a practical way of saving. Saving these coins doesn’t always cause hoarding. When someone drops loose change in the piggy bank, the intention usually is to create a ready fund for emergencies, not to bring them to a smelter.

Nevertheless, experts also advise against sticking with the piggy bank forever. When savings have outgrown the piggy bank, it’s the right time to open a basic bank account. The account will grow in usefulness the older the child grows until the time he or she can put in more on part-time summer work days.

Financial wellness begins with saving. Experts like US Educational Financial Solutions can help you out and take you to the next level, but it’s up to you to establish the foundation for financial security in the future.