{"id":5908,"date":"2021-08-27T09:24:20","date_gmt":"2021-08-27T08:24:20","guid":{"rendered":"https:\/\/cowrywise.com\/blog\/?p=5908"},"modified":"2023-01-23T00:03:08","modified_gmt":"2023-01-22T23:03:08","slug":"alkansya-coin-bank","status":"publish","type":"post","link":"https:\/\/cowrywise.com\/blog\/alkansya-coin-bank\/","title":{"rendered":"Alkansya: Learn from Filipinos About What to do with Spare Cash"},"content":{"rendered":"\n

\u201cAlkansya<\/strong>\u201d is Filipino for \u201ccoin bank\u201d and it is a critical part of the upbringing of children in the Phillippines. It\u2019s very similar to what Nigerian children have as \u201ckolo\u201d<\/strong> or piggybank.<\/p>\n\n\n\n

You probably already know where this post is going. What you don\u2019t know, however, is how this applies to you considering that you likely don\u2019t have a kolo<\/strong> anymore.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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Alkansya. (Photo: Lazada Philippines)<\/em><\/figcaption><\/figure>\n\n\n\n

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<\/strong>.<\/p>\n\n\n\n

Many people don\u2019t use a kolo<\/strong> <\/em>anymore, because we have replaced it with digital platforms like Cowrywise<\/a>, but the same energy should be replicated on these platforms.<\/p>\n\n\n\n

In this context, \u201cspare cash\u201d refers to money you were not expecting – cash gifts, loan refunds, etc<\/p>\n\n\n

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<\/span>Guides<\/span><\/a><\/span>Investing<\/span><\/a><\/div>\n

Financial Assets<\/a><\/h3>\n
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Market Slice: Big Investment Stories from May<\/a><\/h3>\n
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Here are 4 things you can do with spare cash.<\/p>\n\n\n\n

Repay your Debt<\/strong><\/h2>\n\n\n\n

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.<\/p>\n\n\n\n

Start an Emergency Fund<\/strong><\/h2>\n\n\n\n

If you don\u2019t already have one, this is a good opportunity to create one. Emergency funds<\/a> 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.<\/p>\n\n\n\n

Top Up your Long-Term Savings Plan<\/strong><\/h2>\n\n\n\n

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<\/strong> 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.<\/p>\n\n\n\n

Buy More Units of Mutual Funds<\/strong><\/h2>\n\n\n\n

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\u2019t expecting the money in the first place.<\/p>\n\n\n\n

Learn more about how to manage your personal finances<\/a>.<\/p>\n\n\n\n

\"investment<\/a><\/figure>\n\n\n\n

In summary<\/strong><\/h2>\n\n\n\n
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  • Repay any debts you might have<\/li>\n\n\n\n
  • Start an Emergency Fund or top up your existing one<\/li>\n\n\n\n
  • Top up your long-term savings plan<\/li>\n\n\n\n
  • Buy more units of mutual funds<\/li>\n<\/ul>\n\n\n\n

    Filipinos are very strict about their children each having an alkansya,<\/em> and is a very good way to inculcate good money habits in them from the onset. <\/p>\n\n\n\n

    Watch this video on how to make Alkansya by yourself:<\/p>\n\n\n\n

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