Make your Aguinaldo gifts this year last longer

It’s that time of year when many find themselves at the receiving end of “aguinaldos”. No one is ever too old not to be happy getting a cash envelope. Whatever the amount, it’s a welcome and unexpected treat, guaranteed to usher in more holiday cheer.

It’s tempting to run into the nearest mall and spend it all, and after a tough year, that’s not a bad idea. But if you are looking to make your “aguinaldos” last beyond the day, or even 2023, here are some jolly great ideas.

You can choose the traditional passbook account, or one with an ATM, or even go all-digital. The important thing is to set aside your holiday cash gifts into a new account. If possible, make it one that is not so accessible so you don’t end up withdrawing from it at the next opportunity. Then for the rest of 2024, try to add to it as much as you can. Or you can also choose to make it an all-“Aguinaldo” account, meaning only for cash gifts you receive on birthdays, graduations, holidays, and more.

A friend once received her “Aguinaldo” in the form of an investment – the giver placed it on her behalf in a Unit Investment Trust Fund. To her surprise, after one year, the investment earned nearly 20%. Also called UITF, it’s an open-ended pooled trust fund denominated in pesos or even other currency like US dollars or European euros. There are many UITF products now in the market, and you can invest with as little as P1,000. Of course, you may not earn 20% and depending on market conditions, you may also lose your money. So before you part with your “Aguinaldos”, do your research and ask your bank for financial advice.

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You can also choose to spend all your “Aguinaldo” towards a treat – it can be a new phone, a designer bag, a vacation, or whatever your consumer heart desires. Nothing wrong with spending all that money, but the good thing here is that it won’t be an impulse buy. You don’t want to wake up tomorrow with an “Aguinaldo” hangover, meaning you have spent it all and maybe not necessarily on things you really wanted or needed. When you plan to spend, your spending will most likely also get you the best value for your money as you can check around for the best offers, wait for discounted rates, and more.

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Charities around the world usually experience a surge in donations around this time of year, and you can help make that happen again with your “Aguinaldo”. If you have everything you need, consider giving your extra cash away. Feed families, help children stay in school, support women from poor communities to learn a new skill, the list is endless. Consider also giving “yourself”, not just money. Charities always welcome an extra pair of helping hands, during the holidays and even anytime during the year.

You may have family members or friends that are also in need. No need to go far and look elsewhere whom you can help. A friend once decided to surprise a family member by paying his debt (not all of it, just the monthly payment for December) and that was heart-warmingly received. It was the kind of help that the family welcomed so they will have a little bit more for the holidays. Kindness will never go out of fashion, and that’s one gesture that will be remembered.
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ABOUT THE WRITER
Aneth Ng-Lim returns to writing after more than two decades of working as a communications specialist in the government and the private sector. Her advocacy for financial inclusion and personal finance began when she served as head of Consumer Education during her stint at a multinational bank.