Investing 101: How Can Pinoy Parents Grow their Hard-Earned Money?

As parents, you desire to be as present as you can with your kids as they grow up. However, this is made more challenging with the need to make ends meet. There’s a day job to attend to, a side hustle to squeeze in, or a business to manage. When do you actually stop grinding to give your kids the time and attention they need?

The good news is, investing your money makes it possible to achieve your dream to be a more present parent sooner than later. By making money work for you, you won’t need to exhaust longer hours and years on your job to secure your family’s future.

In this article, you’ll find bite-sized information on five options you have to grow your hard-earned money:

Investing 101: How Can Pinoy Parents Grow their Hard-Earned Money?

Modified Pag-IBIG II (MP2) Savings

If you are an active or former Pag-IBIG Fund member, you may voluntarily avail of an MP2 savings account. Your savings will earn through high dividends here than letting it sit in the bank. If your child will move up or you have a big purchase coming in five years, this is recommended for you as it has a five-year maturity period.

Why you should check this out: 

  • You can start investing for as low as ₱500. In fact, there’s no limit on how much money you may put into your account. However, if you want to invest more than ₱500,000, you would need to issue a personal or manager’s check.
  • Your savings are government-guaranteed. This means that you can get the total amount you have invested once it has completed its maturity period.
  • You will not be charged with any penalty if you have missed or ceased paying your contribution. Once you decide to resume, you can do so anytime you want or afford to. You also have the option to just leave it as is – but it will still continue to earn interest!
  • You will receive tax-free dividends and it is higher as compared to the regular Pag-IBIG Savings program. This applies whether you decide to be paid annually or after five years.

For more details, read here.

SSS Worker's Investment and Savings Program (WISP) Plus

If you haven’t taken steps on preparing for your retirement yet, this is an option you may study. The SSS Worker’s Investment and Savings Program (WISP) Plus is a voluntary program that you can avail if you are an SSS member with at least one posted contribution, and without final benefit claim. Once you opt to enroll, this would give you an additional social security protection on top of the regular SSS retirement benefits.

Why you should check this out:

  • You can start investing for as low as ₱500, and there is no set maximum amount for your contribution.
  • You may withdraw your contributions and earnings in partial or in full after a year, and your contributions continue to earn interest even beyond the five-year maturity period.
  • You can expect a higher return on investment. Since your fund is diversified, your contributions are distributed in such a manner that its ultimate goal is to preserve your capital.
  • You may conveniently monitor your contributions and earnings online!

For additional information, check the Laws & Circulars Section of the SSS website.

Variable Unit-Linked (VUL) Life Insurance Plan

In simpler terms, you get a life insurance and an investment when you avail of a VUL life insurance plan. By getting a VUL plan, you have a financial protection in case you leave your family too soon or you live long enough to see grand- and great-grandchildren.

Why you should check this out:

  • Once you get into an emergency situation or an unfavorable circumstance, you have the option to borrow the cash value of your life insurance policy.
  • Once you meet certain standards or amount, you can make withdrawals provided that it won’t consume the total value of your policy.
  • Since its cash value increases in the long run, you may use it on any purpose you have in mind, such as retirement, children’s education, or asset acquisition.
  • Your money is regulated by the Insurance Commission, so you will not need to spend extra time in dealing with your investments in a VUL.

Mutual Funds

In mutual funds, your money is professionally managed, collected or “pooled” with money from other investors to buy assets. You gain money depending on the fund’s performance and the quantity of the “shares” you own.

Why you should check this out:

  • The dividends you have earned can be reinvested by buying additional shares of the same fund.
  • You can easily redeem or sell the mutual fund units that you own, giving you easy access to your money when you need it.
  • Your investment is handled and supervised by knowledgeable and skilled fund managers who did extensive research to make sound financial decisions.
  • You are provided with an account statement that gives you regular updates on where your fund was allocated and how much its total value is at present.
  • You may start with a small contribution depending on your financial capacity, but it still has a high potential to grow over time.


If you want to venture on a long-term investment, stocks might be for you. Your “shares,” or units of stocks, entitles you on claims of the company’s earnings and assets depending on the number of shares you own. Essentially, the value you get depends on the growth or decline of the business.

Why you should check this out:

  • If you also consider yourself a more aggressive risk-taker, your financial gains through stocks will be higher. Here, you are offered maximum potential for growth over a long period of time.
  • You earn through two ways: first, through capital appreciation where the amount you initially invested had an increase in value, and second, through dividends or profits earned by the company is distributed to its shareholders.
  • Through stocks, you may be able to beat inflation, since its track record shows that it has outperformed cash by keeping up with the prices of prime commodities. Your generated earnings are reinvested so it can gain interest on its own.
  • You can choose a mix of industries or assets that you can invest on which aligns with your financial goals and preferences.
  • You can sell the stocks you own, so it can be converted to cash if the need arises.

Money remains to be a touchy subject among Filipino households, but there’s no fear that knowledge cannot extinguish. When making a choice on where to invest, ask yourself what your financial goal is and how much risk you’re willing to take. Keep reading and studying your options. Ask around and take your time until you feel confident. It’s also important for you to stay disciplined and consistent towards reaching your goal for your and your family’s dreams.

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