Has any one saved in a cash can?

Debt_Free_Chick

In my view, the best of saving is to put money into a good savings account, so it earns interest from day one and then to use coinage as spending money.

Money in a can isn't getting any interest and is actually depreciating due to inflation, as anything that costs £1 today is likely to cost more in the future. So the £1 you put in a can today will be worth less than £1 next year.

So .... save in a savings account and keep the change to spend.

dora37

Debt_Free_Chick wrote:

In my view, the best of saving is to put money into a good savings account, so it earns interest from day one and then to use coinage as spending money.

Money in a can isn't getting any interest and is actually depreciating due to inflation, as anything that costs £1 today is likely to cost more in the future. So the £1 you put in a can today will be worth less than £1 next year.

So .... save in a savings account and keep the change to spend.

Undoubtedly putting the money in a savings account is the most financially astute way to save, however some people don't have that discipline.

Therefore by having a cash can, jar...whatever, people can very easily put coins in that they normally wouldn't put away thus learning a basic discipline of saving.....surely better than nothing?

K9cuddles

Why can't you have both? I have cash cans for my spare change, there's no way I'd to a bank and pay that in every day! and Then my saving accounts for my bigger sums!!

dora37

K9cuddles wrote:

Why can't you have both? I have cash cans for my spare change, there's no way I'd to a bank and pay that in every day! and Then my saving accounts for my bigger sums!!

Exactly my point. My DS has been putting a £1 into a £100 cash can since last summer and he has now filled it!

He has a sense of acheivement and without the novelty of having the can, definitely wouldn't have saved anywhere near that amount.

Ok, if he had put it into a savings account he would have gained interest, however I also know that he wouldn't have paid a £1 at a time into a savings account!

Joe_Bloggs

@dora37
I think you should pay your DS some interest on the money saved to illustrate the interest principle. There are some excellent young savers accounts around with impressive interest rates and banking facilities.
J_B.
You new you were poor when your mum put an IOU in your piggybank.

Debt_Free_Chick

Undoubtedly putting the money in a savings account is the most financially astute way to save, however some people don't have that discipline

Why can't you have both? I have cash cans for my spare change, there's no way I'd to a bank and pay that in every day! and Then my saving accounts for my bigger sums!!

Ok, if he had put it into a savings account he would have gained interest, however I also know that he wouldn't have paid a £1 at a time into a savings account!

All you are doing is taking, say, £30 out of a current account as cash and spending some of it. You are then putting what you haven't spent into a can.

If you had a standing order from your current account to a savings account for £10 a month, you would have £10 less in your current account to take out as cash and that's the £10 that would have ended up in your can. Instead, it's already in your savings account earning interest.

No need to bank small amounts of change - simply put it into a savings account rather than taking it out of your current account as cash.

No discipline required, no cash to put in a can.

Why is it so difficult

K9cuddles

Yes.. but you would still have change in your purse that you could save!!!! I have SO in to saving accounts, but saving on my change means I save MORE.. once a cash can is full - bank it. Saving pots aren't RATHER than savings accounts.. there in addition!! Just another saving vessel!

Joe_Bloggs

@K9Cuddles
You keep picking up more change in your purse because you keep putting it away in a can. Many retailers would welcome the change in your purse rather than have to pay a bank for it. You don't have to pay exact money but you can overpay just enough in coppers to get a large silver coin back.
J_B.

Debt_Free_Chick

K9cuddles wrote:

Yes.. but you would still have change in your purse that you could save!!!! I have SO in to saving accounts, but saving on my change means I save MORE.. once a cash can is full - bank it. Saving pots aren't RATHER than savings accounts.. there in addition!! Just another saving vessel!

No - you use the cash when you next need to spend money. I don't mean simply fritter it away, but whenever you have to buy something in your budget, use the cash. This way, you take less out of your current account ....

If you have cash and put it in a can, then your purse is empty. So when you need cash, you're going to the cashpoint and drawing it out of your current account. Why? You had the cash previously and have stashed it in a can, which you're going to leave for a while and then recycle back to the bank.

We are actually achieving the same thing, but in a different way. My suggestion will earn you more interest - as that's effectively money for nothing, why would you not do it?

K9cuddles

I still disagree.. but then having an argument over cash cans is pretty sad!!