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When you break open a piggy bank, you are doing what thousands of children have done for hundreds of years. But why do you stash your cash in a piggy bank in the first place?
In England in the Middle Ages, the word pygg meant a certain kind of orange-colored clay. Potters used pygg clay to make jars, bowls, pots, and other containers for storing household items such as salt and grain. People who lived in England during that time called those pots "pygg jars."
You can imagine that a pygg jar would be a good place for hiding or saving money. And that's exactly what many people did. They dropped their extra coins into empty pygg jars.
Over time, people started calling these money-saving jars "pygg banks."
It's possible that over the years, people simply forgot that pygg meant ...
Source: HighBeam Research, Pyggmania: piggy banks then and now.