Spare change is the most underrated tool of everyday finances. So often overlooked in our daily lives, it possesses remarkable potential when it is not forgotten about or discarded. You just need a little imagination to discover all the best things to do with spare change.
Whether it’s at the bottom of your purse or left on your desk, utilising spare change effectively can have a profound impact on your financial goals by helping all of your money go further.
I’m sure as children, we all had a coveted piggy bank of some sort that we would enthusiastically fill; waiting for the day we had saved enough for whatever our minds had dreamed up. And though I can’t say that filling a piggy bank will get you on the property ladder, I believe it is this child-like enthusiasm that we should all inject back into our relationship with spare change.
In this post, we will explore 10 clever ways to make the most out of your spare change, with the aim of transforming it from mere pocket clutter into a valuable asset for aiding your finances.
1. Save in a Spare Change Jar
We will kick off with the classic of starting a spare change jar. Personally, I love a spare change jar because it helps me keep all of my change in one place and once it is full I get to decide what to spend it on.
This method is also one that requires minimal effort so it is perfect if you are constantly on the go and often lose your change in pockets or down the sides of your furniture.
Not only does a jar provide a straightforward way to accumulate savings, but it also serves as a powerful visual reminder of your progress towards your financial goals. By setting specific objectives for the saved amount, such as a vacation fund or a rainy-day fund, you can stay motivated to consistently deposit spare change into your jar and never overlook your coins again.
2. Start a Small Emergency Fund
An emergency fund is your safety net in times of financial uncertainty. If you haven’t already heard me banging on about the importance of building an emergency fund then you must read this post once you’re finished here!
Though I encourage you to aim to build a substantial emergency fund in the long-run, spare change can be the cornerstone of starting a modest emergency fund, that can offer essential financial security during unexpected crises.
Using your spare change to build an emergency fund is a great option when you do not have any surplus income that you can allocate to one every month.
I would recommend gradually increase this fund by setting aside a designated portion of your spare change regularly. Even small contributions can add up over time, providing peace of mind and a safety net in the face of unforeseen circumstances.
3. Donate to Charity
Though most of these ideas will aim to enrich your own financial life, there is also power in helping others. By donating to charity, you will not only help a cause close to your heart, but you will also enrich your personal fulfilment.
One of the greatest things about spare change is that it is often not necessary.
Bear with me here.
What I mean by this is that for the majority of us, we can afford to lose our spare change and not feel the impact financially. That means if you do manage to save up and use your spare change, it is almost like a bonus. And on the flip side to that, we can also afford to donate some to charity. Though it may not be much to you, it could add up to make a big difference to someone else.
Many charities and community organizations accept spare change donations, which collectively can have a significant impact. Whether it’s supporting local shelters, funding educational initiatives, or aiding disaster relief efforts, your spare change can be a force for positive change in the world.
4. Convert it with Coinstar Machines or Banks
Obviously, if you start saving up your spare change, eventually you are going to have a tonne of coins that are pretty impossible to use as they are.
That’s where coin exchange machines come in. In the UK, there is a Coinstar machine in nearly every supermarket. At these machines, you simply take your spare change jar, tip it into the machine and they will give you it back in cash notes, vouchers or charity donations.
You can also take change into a bank to get converted but you would have to sort it. The beauty of the machines is that you can just take the jar and convert it in mere minutes. One drawback though is that for this convenience, you will pay a transaction fee of 25p plus an 11.5% processing fee. This amount will be taken off for you, before you receive your money.
By converting loose coins into usable currency, you can free up your jar to start saving again and easily use your savings for whatever you might have had your eye on.
5. Spend it!
While saving and investing are sensible and recommended most of the time, don’t forget to enjoy the immediate benefits of your spare change.
You could use it to cover small expenses like parking, meal deals or public transportation fares. Alternatively, you could do exactly what I do and only ever buy “wants” with cash. You see I am part of the “cash doesn’t really count” crew. Don’t get me wrong, I budget everything that I earn and save and of course, I count cash in that. But when it comes to any “wants” or unnecessary purchases I only ever use cash. This way, my bank balance doesn’t take the hit and I can physically see the impact of my spending.
In fact, I would encourage you to spend your spare change in this way. As we covered before, spare change is often not integral to your financial well-being, so you should feel less guilty spending it (please don’t go crazy though! Still only buy what you are really sure of!).
Spending your cash on a takeaway hot chocolate or something that has been on your wishlist for a while is still a great thing to do with spare change!
6. Invest it
Transform your spare change into potential wealth by investing it. This is just like the savings jar, but instead of your money sitting in the jar, it is invested so it has the potential to grow.
Now I am not a financial expert, I am not here to give you investment advice and to tell you the truth I only started my own investment journey last year.
The main thing you have to remember with investing is that your money is at risk. There is no guarantee that you will make more money, or even get back what you put in. That is why I think investing spare change is such a great idea.
As I have said, you won’t necessarily miss any spare change. After all, how much good was it doing you rolling around the floor of your car? That’s why investing it could be a great option. You don’t mind if you lose it but you have the potential to grow it for your future.
With time, even the smallest investments can grow into significant assets.
7. Save for Christmas
The holiday season is a time of celebration but I think we can all agree that it is also a time of great financial stress. With the countless expenses that come with Christmas, from gifts to decorations, festive feasts to work parties, it’s easy to see how your spending can quickly spiral out of control.
That is why saving up throughout the year is crucial if you don’t want to financially suffer by December!
Prepare for the holiday season by setting aside your spare change now. Creating a Christmas fund ensures that you can cover all the gifts, decorations, and festivities without straining your monthly budget.
Of all the sinking funds you could save for using spare change, I firmly believe Christmas has the most impact. I don’t think I’ve ever not been shocked by how expensive Christmas is. So it is worth pouring all your loose change into trying to save yourself from a very tight January!
Hopefully, by setting aside spare change throughout the year, specifically for this purpose, you can enjoy an stress-free and joyful holiday season.
8. Pay Off Debts
Perhaps, before you start saving for Christmas or any other expense, you should consider putting your spare change to work by using it to pay off debts.
Debt is not a good place to be, but it is a place that the majority of us find ourselves in at some point. What matters is working towards getting out of it. By using your spare change to pay it off in small increments, you can start to chip away at this looming mountain.
By making these extra contributions to your debt repayment goals, you can accelerate your journey out of debt and towards financial freedom.
9. Buy a Lottery Ticket
While buying a lottery ticket with spare change may seem like a risky or even pointless endeavour, but it can also be a fun and exciting way to use your spare cash.
If your spare change would otherwise go unused (i.e. it’s in on the floor of your car) why not take a chance for the possibility of a significant reward? You would have nothing to lose and everything to gain. And apart from anything else, just being entered to have the chance to win can be very exciting.
Just remember to approach it as entertainment using discarded change rather than a reliable investment strategy for any larger amount of money.
10. Treat Yourself!
Finally, this is possibly the only time I am going to encourage you to throw caution to the wind and simply treat yourself!
Indulge in guilt-free spending by using spare change as your “silly money” for occasional treats and luxuries. Whether it’s a cup of gourmet coffee, new shoes, or another indulgence, allow yourself to enjoy the simple pleasures that spare change can afford. Spend it on small luxuries or save it up for something your heart truly desires.
After all, life is meant to be savoured, and sometimes you have just got to do what makes you happy.
Conclusion
Spare change may seem pretty futile on it’s own, but once you create a plan for it, it can unlock a world of possibilities for achieving various financial and personal goals. By implementing some of the suggested ideas, you can transform your spare change from something that just weighs down your pockets into a valuable resource to enhance your income.
Start today! Go on a spare change scavenger hunt around the house, in your pockets and every purse you’ve ever owned and see how much you can find!
If you choose one of the above options where you save your change, come back and let me know how much you manage to save in a week, month or even a year!
Share your saving stories to help inspire and motivate everyone’s saving journey!
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