Why Piggy Banks Are Cancelled: A Better Way to Teach Kids About Money

For generations, piggy banks were the go-to tool for teaching kids about money. We’d drop coins inside, shake them around, and eventually crack them open to see how much had piled up.

Fun? Absolutely.
Effective at teaching kids how to manage money? Not so much.

The problem is simple: piggy banks only show kids that money goes in and money comes out. They don’t teach the most important skills — how to plan, make choices, align money with values, or see it as a tool that can grow.

That’s why at Raising Little Millionaires, piggy banks are cancelled. There’s a better way: the Jar System.

Why Piggy Banks Fall Short

Piggy banks may look adorable on a shelf, but they don’t teach kids what money can do. When a child drops coins into a single container, they learn one skill — accumulation. They see the pile grow, but they don’t learn how to make choices with it or what those choices mean.

Here’s what kids miss when they only have a piggy bank:

No choices. All the money is lumped together, so kids don’t practice dividing for different purposes.
No visibility. They can’t see which money is for saving, which is for spending, and which is for giving.
No values. There’s no natural way to connect money with generosity, goal-setting, or growth.

Piggy banks are cute — but they stop short of teaching money confidence. And kids deserve better.

Meet the Jar System

The Jar System solves what piggy banks can’t. By dividing money into multiple jars, each with a clear purpose, kids practice managing money in real time.

Instead of one pile, kids now have four containers that show them: money has different jobs.

Spend Jar – For short-term wants like snacks, toys, or small treats.
Save Jar – For bigger goals that take a little longer, like a game, a bike, or a trip.
Share Jar – For giving to others, whether that’s a cause, a friend, or a community project.
Grow Jar – For investing or entrepreneurship, so kids see that money can actually make more money.

The magic of jars isn’t just in the system — it’s in the visibility. Kids can actually see their money growing in each jar, which makes abstract concepts like saving, giving, and investing real.

Why the Jar System Works

At first glance, the Jar System seems simple — just split money into containers. But behind that simplicity are powerful lessons that last a lifetime.

Unlike piggy banks, jars create natural opportunities for kids to practice the skills that confident adults rely on every day:

Decision-making: They learn that money isn’t just “held” — it’s directed with intention.
Balance: They see that money isn’t only for spending. Saving, giving, and growing are equally important.
Values: Kids begin to connect money to what matters most, whether that’s generosity, independence, or freedom.
Preparation for the next stage: The Jar System isn’t the end goal. By around age 9, we recommend transitioning kids from jars into paper-based budgeting and eventually into real accounts. What started as coins in jars becomes practice for managing multiple accounts — checking, savings, investment, even retirement later on.

The truth is: piggy banks teach storage. Jars teach stewardship. And stewardship prepares kids for real budgeting and independence.

How to Get Started at Home

Setting up the Jar System doesn’t have to be complicated. In fact, the easier you make it, the more likely it is to stick. Here’s how most families get started:

Grab four clear containers. Jars, Tupperware, or even recycled jars work fine. Clear is best — kids should see the money build.
Label them together. Spend, Save, Share, Grow. Let your child decorate or color-code the jars — ownership matters.
Start with what they have. Allowance, birthday money, chore earnings — even a couple of dollars works.
Divide first. As soon as money comes in, split it into jars before any spending happens.
Narrate choices. Talk it through: “That $2 in Save means you’re halfway to your Lego goal.”
Celebrate milestones. When a jar fills up, mark the moment. Let them feel the win.

Pro Tip: With very young kids (ages 3–5), start with just three jars — Spend, Save, Share. Introduce the Grow jar around ages 6–8 when they’re ready to explore how money can grow.

Everyday Lessons You Can Teach With Jars

The beauty of the Jar System is that every deposit or decision becomes a teachable moment. Instead of lecturing, you can use everyday situations to connect money to life:

Needs vs. Wants: Use the Spend jar for “wants” and the Save jar for “needs” that take time, like new shoes.
Delayed Gratification: Watching the Save jar fill teaches patience — one of the most important money skills.
Generosity: The Share jar normalizes giving as part of money management, not just a once-in-a-while thing.
Investing Basics: The Grow jar introduces kids to the idea that money can work for them, not just be spent by them.

Each jar is more than a container — it’s a mini money lesson your child gets to practice over and over.

Why This Matters

Here’s the bigger picture: when kids only have a piggy bank, money stays abstract. They may know they “have some,” but they don’t see how to use it with purpose.

With the Jar System, kids get hands-on practice with the exact habits that build financial independence:

Splitting money into categories before spending
Setting and achieving goals
Connecting money to values and choices
Saving, giving, and investing as regular habits
Preparing for paper budgets and multiple accounts as they grow

And because they’re practicing when the stakes are small — with a $5 allowance or birthday money — they’ll be ready when the stakes are bigger: debit cards, jobs, or even their first apartment.

The Bottom Line

Piggy banks may be cute, but they don’t raise money-smart kids. The Jar System does.

It’s simple. It’s visual. It’s flexible. And it grows with your child — from their first dollar to their first budgeting system, their first bank account, and eventually their first paycheck.

Because when we teach kids about money early, we’re not just teaching them to save. We’re teaching them independence. We’re teaching them confidence. We’re giving them a choice-filled life.

And that’s a whole lot better than a piggy bank.