“Alkansya” is Filipino for “coin bank” and it is a critical part of the upbringing of children in the Phillippines. It’s very similar to what Nigerian children have as “kolo” or piggybank.
You probably already know where this post is going. What you don’t know, however, is how this applies to you considering that you likely don’t have a kolo anymore.
This post is considered a Filipino reminder that spare cash should not be treated as money for frivolities. It should be seen as an opportunity to reach your financial goals faster.
Growing up, remember how excited we were to put money inside our kolo, and shake it to reassure ourselves that all the money was still there? That is the same energy Filipinos have in aggressively treating spare cash in their alkansya.
Many people don’t use a kolo anymore, because we have replaced it with digital platforms like Cowrywise, but the same energy should be replicated on these platforms.
In this context, “spare cash” refers to money you were not expecting – cash gifts, loan refunds, etc
Here are 4 things you can do with spare cash.
Repay your Debt
This one is quite straightforward and is only wise. It would be irresponsible of anyone who is in debt to spend spare cash recklessly. Spare cash should be used to first pay off any outstanding debt or loans.
Start an Emergency Fund
If you don’t already have one, this is a good opportunity to create one. Emergency funds are even more important these days with how volatile the economy is. People lose their jobs in minutes and are left stranded because they did not have emergency funds. Spare cash is a good opportunity to create one or top it up.
Top Up your Long-Term Savings Plan
Considering that you were not expecting the money, it follows to tuck it away safely in a long-term savings plan. Children break their alkansya at the end of the year and are filled with so much joy at how much they have been able to save. You get the same feeling when your maturity date reaches and you either withdraw or roll over.
Buy More Units of Mutual Funds
Spare cash, like I said earlier should be seen as an opportunity to reach your financial goals faster. Buying more units of mutual funds is a good way to go when you receive cash gifts. You can even decide to invest in higher-risk funds since you weren’t expecting the money in the first place.
Learn more about how to manage your personal finances.
In summary
- Repay any debts you might have
- Start an Emergency Fund or top up your existing one
- Top up your long-term savings plan
- Buy more units of mutual funds
Filipinos are very strict about their children each having an alkansya, and is a very good way to inculcate good money habits in them from the onset.
Watch this video on how to make Alkansya by yourself:
As adults, it would then be a lot easier to transfer these saving habits to the digital platforms we use today. Ready to get started on building good money habits? Begin your financial journey here.
To learn more about how different countries and cultures handle cash, see our #MoneyMap series.
Got any questions? Reach out to us or share with us in the comments.
Good evening, my question to you please if open an account today in naira his the money will converted to us dollar to running the account
If you are investing in a dollar fund, yes.
Can the funds be traded rather than investing to increase gains?
What if your money is in cash(Dollar)
Please I already have an account, will I have to re-open another account before investing in dollar?
Can I invest in the next eurobond using dollar (cash)? If yes, will my returns be in dollar as well or it will be converted to naira??
Hi Helen, you can invest in Eurobonds at any time. However, we only accept naira deposits at the moment. Also, your returns accrue in dollars.
So which is best to earn the second way or first?
Focusing on returns will be better
Hi, what is the minimum amount you can invest with.
Hi there. You can invest the naira equivalent of $100
Hi Ope, does that mean I’d need two accnts to operate the fund, I.e a naira account to put in the naira funds which is d only 1 u currently accept, then a domicilary account where my returns would accrue in?
I want to invest in your Eurobond.
I have re-installed your new app an still can get the eurobond plan?
How much is the minimum equivalent dollar for a start?
Can i get an overview of all the benefits and rules of this plan?
***and still can’t get the eurobond plan?
Do you allow people from south Africa
Hello, my question is if I invest in the dollar mutual fund how do I get the returns?
Will it be in naira or in dollars and will I have to open another account for the returns to go into
Can’t you go down to 50USD
Hello Nsikak, currently the minimum is $100 but we we are looking at a possible review in the future.
The new minimum is $10
Hello will I have to re-open another account before investing in dollar?
luckysolomon444@gmail.com
I have invested in dollars mutual fund… It means I Will get my return in one year
Hi Jonathan,
How is the return/interest on your investment from November 27,2020 so far??
No you don’t have to, just click on invest in mutual funds, you will see the options there. You can navigate and alot with your account.
If I invest in the euro bond, it is expected that my return accrues in dollar, right? And how do I withdraw the dollar? Do I need to convert it to naira, if yes, how can I convert my dollar to naira on the app. Lastly, how long do I need to leave my investment on cowrywise? Or can I withdraw anytime?
Am interested. Let’s say I put in a $1,000. What the ROI…within 1 year.
Your interest is 6.6% then calculate it for one year, I think so
Hello,
As a Nigerian, can I save my money in dollars even though I don’t want to invest in a dollar mutual fund?
Pretty soon, yes!
If l invest in naira am l going to get it back in dollar
You’d be getting it at the prevalent naira exchange value of the dollar.
Am going to save in naira am going to get it back in dollar
You’d be getting it at the prevalent naira exchange value of the dollar.
Hello ope pls how much is $10 in naira
How long does the investment last.i.e when can I get my returns
I will give BIG CONGRATULATIONS to the entire Management of COWRYWISE for this wonderful opportunity to be a good investor with simple and sound education on various investment opportunities an investment can be done with little and grow within a short period period of time
God bless
Thank you so much ?
Now if I put 100$ in one year what is my return
If my return will be in the current dollar rate at the time, when i am investing and when am getting my returns, what exchange rate do u use? Black market rates or the bank rates – please verify in each case. Thanks.
Hello please if you can create the one we can start with the minimum $1 we’ll be happy ??
I just started investing in eurobond funds on cowrywise. So far so good, it has been a good platform to invest money and earn back. Kudos to the team behind this platform