I got a newsletter in my email today from FamilyCorner.com that had an article about Frugal Living | The Money Jar Trap It was about how much money you actually LOSE by saving your coins in a piggy bank instead of depositing them in the bank. The point being that if you use those Coinstar things in the grocery store, they are charging you almost 10% to give you the money in bills. And even many banks these days are charging you to cash in your coins.
This got me thinking. I bought Andrew a clear piggy bank several months ago. I told him we’d start putting all the coins we find in it, and I’d even empty my pockets every night and put the coins in there. When the bank gets full, we’ll take it to the grocery store to cash it in and then we’ll do something special like date night at the movies or something. I knew the Coinstar would charge a fee, but I never stopped to think how much it would be. I mean say there ends up being $80 in that bank. The fee would be approximately $8. Now at first that doesn’t seem like much, but you know, me and Andrew can eat at McDonald’s for that much. So in essence, it’s a whole meal.
If there is a way to make a buck, you can be sure that banks and others will try to take it. — FamilyCorner.com
So now I’m rethinking what we are going to do with that money. I don’t have a regular bank to deposit it into. I use a pre-paid debit card. Andrew used to have a savings account, but they recently closed it due to inactivity. I suppose I could open it back up and deposit them there, but then the article points out that even banks are starting to charge for mass amounts of loose change.
What do you think? Should I suck it up and do the Coinstar thing and rethink what to do next time? Andrew enjoys watching the pig get fuller and fuller. So maybe the fee is worth it. Or should I open him another savings account and deposit the money there. Perhaps weekly? The last time he got his own debit card and most of the banks have special programs for children so they earn prizes and stuff for depositing their money.
I’m going to have to give this some more thought. In the mean time, piggy is almost full enough to party!
Check out the article and vote in their poll.