MP2, Banks, or Investments? Where Parents Put Kids’ Aguinaldo

Every Christmas and birthday season, parents face the same question. After the excitement fades and the envelopes are opened, where should a child’s aguinaldo go? In Smart Parenting Village, moms share how they handle their kids’ money gifts, from long-term savings to simple ways to teach children to manage cash early on.

Their answers show that aguinaldo is not just extra money. It is often a child’s first real introduction to saving, spending, and planning for the future.

Also read: Wais Tips: Anong Magandang Gawin sa Mga Aguinaldong Natanggap ng Mga Bata?

Many SPV moms choose Pag-IBIG MP2, especially for babies and toddlers.

One mom says she combines everything her kids save in a year plus their money gifts, doubles the amount, and puts it in MP2. “Para diretso na sa future nila,” she shares. Another mom places all her one-year-old’s monetary gifts in MP2 because the returns are higher. “Mas lumalaki kasi 'yung earnings.”

What this means: MP2 is a government-backed savings program that usually earns more than a regular bank account. The funds remain locked for five years, helping parents avoid the temptation to spend them. This works well for aguinaldo meant for long-term needs such as tuition or future expenses.

Some parents prefer traditional junior savings accounts like BDO Junior Savers, RCBC Junior Savers, or PSBank Kiddie Savers.

One mom says she also bought a battery-powered coin and bills bank so her kids can physically save at home. “Tuwing may barya, gusto nila agad ihulog,” she laughs. Another parent likes junior bank accounts because kids can see their balance grow. “At least alam nila na may pinupuntahan 'yung pera.”

Junior savings accounts earn less interest than MP2, but they are easy to access and great for teaching kids how banks work. They suit younger children who are just starting to understand money.

Other SPV (Smart Parenting Village) moms use digital banks like GoTyme, Maya, or Maribank, for their children’s aguinaldo. They like the convenience and higher interest compared to traditional savings. “Madaling i-check at madaling ilipat kung kailangan,” one mom explains.

Digital banks work well for short- to medium-term savings. Parents can access funds quickly for school expenses or emergencies while still earning higher interest than a basic savings account.

When aguinaldo or gift money is more substantial, some parents explore investments.

One mom suggests gold investment for savings that are not yet very large. “Any time pwede mo siyang gawing cash, pero tumataas din ang value,” she says. Another parent places his two-year-old’s birthday and holiday money in a UITF with aggressive risk. “Hindi naman gagalawin, kaya pinapalago na namin.”

What this means: Investments can grow money faster, but they also come with risk. These options are better for parents who plan to leave the money untouched for years and understand market ups and downs.

For older children, some parents take a balanced approach. One mom shares that since her daughter is already 11 years old, she lets her keep part of her aguinaldo while saving the rest in MP2 and a junior account. “Importante na matuto siyang magbudget on her own.”

Allowing kids to manage a portion of their money teaches budgeting, decision-making, and responsibility, while parents still protect long-term savings.

There is no single best way to keep a child’s aguinaldo. As SPV moms show, the right choice depends on your child’s age, the amount involved, and how soon the money might be needed.

Click here for five tips from a financial advisor on raising money-wise kids.