Where do OFW remittances go?
Dennis Christian Hilanga in Ang Pinoy Stories
Aug 26, 2020 • 3 min Read
One toxic Filipino mentality is the assumption that relatives or friends working abroad are millionaires who dispense cash automatically.
Think twice, Kabayan. You have no idea what overseas Filipino workers (OFWs) have to endure to send a dollar for their families. OFWs are never paid millions to be able to shell out a hefty amount of money and huge balikbayan boxes anytime.
OFWs have varied reasons why they try their luck in other countries. The only similarity is that all of them are looking for greener pastures to make their dreams come true.
OFWs are one of our major economic builders. According to the Bangko Sentral ng Pilipinas (BSP), OFW remittances hit an all-time high record of $33.5 billion in personal remittances in 2019.
Let us break down the personal remittances and analyze how these are spent by their families in the Philippines:
1. Education
While it’s everyone’s right, education in the country seems to be a privilege for many. Unless a full scholar from primary to tertiary education, students are required a huge amount of investment before earning a college diploma. Tuition fees are getting expensive each year along with increasing allowances for transportation, dormitory, and school requirements.
This is one of the reasons why parents are choosing to leave their children and go for that opportunity abroad with a promising paycheck. They miss milestones and celebrations back home in exchange for the security of their children’s future.
2. Utilities, food, medicine
From basic needs to utilities, providing a decent life for the family is very challenging in the Philippines. Blame it on the high price of commodities against a low salary.
For families to survive, the breadwinner takes a bigger step to make his or her family comfortable. The salary abroad is bigger and will be enough to pay monthly bills (electricity, internet, house rent, etc.), buy quality food, and medicine for a sick family member.
3. Loans
OFWs have lots of unpaid/unsettled loans before they leave for abroad. Their families’ loans are their loans as well. Loans help their families through rainy days.
Working abroad is the faster way to get out of debt and OFWs can easily pay their loans compared to when they are in the Philippines.
4. Dreamhouse
OFWs work hard to have their own houses so they can live comfortably with their families. A comfortable home is always a good investment and a reflection that their money did not go to waste.
5. Savings, Travel, Luxury
Some OFWs send money to a trusted relative in the Philippines or deposit directly to their bank account. The family may or may not be aware of the savings but OFWs need to think of their future as working abroad may not last forever. OFWs deserve to enjoy every centavo of their hard-earned money so they can travel with their loved ones, or spend for their own “luho.”
The next time you ask an OFW for a “pasalubong,” think again. They have their priorities and don’t be mad if they do not grant your request.
