Once you complete your first challenge inside Nutty Acres (after doing the "Open Nuts" achievement to unlock the world), head back to Showdown Town. There is a switch right next to the Jiggy bank that will now show a "1" over it, indicating there are Jiggies inside. Use the switch to make it pop out, then pick it up with RT and run underneath the Jiggy Bank for it to get sucked up inside.
Note: Each level has its own Jiggy dispenser. Here are their locations:
- Nutty Acres: Directly next to the Jiggy bank.
- Logbox720: To the right of the world doors.
- Banjoland: To the right of Trophy Thomas' house.
- Jiggoseum: In the alleyway of all the doors, inside a rundown house.
- Terranium of Terror: In between two of the world doors in Uptown.
- Trophy Thomas Bonus: At his house.
- Jolly Dodger Purchases: Near the jails.