“With all their hard work, Overseas Filipino Workers can bring home the bacon and eat it too. However, people often assume that they spend their compensation on frivolous expenses. “
OFWs feel guilt and shame because they don’t usually come to be with their families, so they over-indulge their loved ones, says the Social Enterprise Development Partnership Inc.
Using OFW cash remittance wisely
When it comes to money management, OFWs are pretty knowledgeable.
According to the Bangko Sentral ng Pilipinas (BSP) Consumer Expectations Survey for the second quarter of 2019, 68.9 percent of OFW families budget for education and 49.8 percent for medical expenses. Housing spending increased as well, compared to the first quarter of the year.
According to a 2018 survey conducted by the Philippine Statistics Authority (PSA) on OFWs, 66 percent of OFW families saved less than 25 percent of their remittances. Nonetheless, only 11% of these families saved 50% or more of their income.
As a result, OFWs aren’t as extravagant with their spending as they appear. They have begun to prioritize education, health care, and housing. However, while this seems to be a step in the right direction, OFWs still require more than savings to secure their family’s future.
According to the BSP and PSA surveys, only 7.8 percent of OFW households invest their money. While certain factors influence where and how they allocate their funds, OFWs require knowledge and guidance on how to grow their money.
OFWs can assess their suitability and seek advice from a financial advisor. The assessment evaluates their current financial situation, and an advisor can recommend the best option based on their objectives.
Money management for families, particularly for OFWs, cannot be done by a single person. While they are most likely the breadwinners in their families, this does not mean that they must bear the burden of ensuring their families’ safety on their own.
It should be their family’s responsibility to ensure that whatever hard-earned income the OFW sends back home is put to good use.