What is piggy banking?
Piggy-bank saving or "piggy banking" is a way to save using virtual pots for allocating your money. It can help you budget better.
Piggy banking involves splitting your money into separate “piggy banks”, each for a different purpose. This savings method makes it easier for you to set a budget for how much you want to spend on things each month and set aside money for important things like bills and rent.
Download a budgeting app
While piggy banking draws on an old school savings method, with current technology it’s easier to do than ever before! With all the different budgeting and personal finance apps available now, it takes little work to divide your money into different categories. And it’s especially easy with digital banking apps like Revolut and Monzo.
Revolut allows you to divide your money into different “Vaults” for various categories. Similarly, Monzo also lets you split your money into different “Pots” which can be used for anything you want.
Apps that can help you budget
Balance and set your budget
Before you start piggy banking go through your finances and make sure you can afford to cover the amount that you expect to spend monthly.
By balancing your budget, you ensure that you are earning enough to cover all your spendings. You need to evaluate your income and make sure it covers all your essential expenses (like bills and rent), and cut any costs if necessary to meet your expected monthly budget.
Set up different categories
Decide the different categories that you would spread your money over. There are no rules to this; you can have as many different categories as you like! Here are some categories to get you started:
- Travel money
- Splurge money
Decide how much to add to each piggy bank
Go through your income and decide how much you’ll add to every piggy bank. Prioritise the different categories and decide which ones you need to add the most money to (like rent and bills).
It’s always good to overestimate how much money you should add to your piggy banks for things like bills and groceries, just to make sure you have enough to cover everything.
More guides on Finder
Autumn Statement 2023: What it means for you
Finder’s experts explain the impact of the changes your finances.
5 steps to financial wellness
If your money habits are in need of a makeover, follow these 5 steps to help boost your financial wellness.
How to save money: 5 shortcuts
Finder’s UK editor-in-chief shares 5 ways to save up to £423 on petrol, household bills and shopping.
Wally app review
Wally is a budgeting app that lets you view your accounts, track payments, analyse your spending and set savings targets.
Wallet by BudgetBakers review
Wallet by BudgetBakers helps you organise your money and personalise budgets and goals. Finder looks at its features, pros, cons and premium options.
Moneyhub app review
An app that lets you see all your accounts in one place? Find out how the finance app could help you manage your money better.
Emma app review
Want to take better control of your finances? We explore the budgeting and saving features offered by the Emma money management app.
The UK’s best budgeting apps of 2023
Saving for a holiday? A house? Retirement? Budgeting apps could help you get a hold of your finances. Compare the best budgeting apps in the UK using our table.
Money Dashboard review
Is Money Dashboard the right personal finance solution for you? We explore the finance planner and all of the features of a Money Dashboard account. Read our review to get the low down on a popular budgeting app.