The Importance of Remittance
How Remittances Support Filipino Families
12 December 2024
Remittances are a lifeline for Filipino families, sustaining daily needs, funding education, and covering healthcare during emergencies. With 2.16 million OFWs supporting loved ones and driving the Philippine economy, these funds symbolize resilience and dedication. Learn how OTT Remit ensures your hard-earned money makes a lasting impact.
The Importance of Remittances in Supporting Filipino Families
According to the Philippine Statistics Authority, there were an estimated 2.16 million Overseas Filipino Workers (OFWs) who worked abroad from April to September 2023.Their financial contributions are what provide a better life for their loved ones as well as play a significant role in economic growth.
Remittances are more than just financial transfers for Filipino migrants. About 75 per cent of remittances are used to put food on the table and cover medical expenses, school fees or housing expenses. In times of crisis, migrant workers are likely to send more money home to cover crop losses or family emergencies. The remaining 25 per cent is either saved or invested in assets or activities that generate income and jobs. The funds support loved ones, strengthen communities and drives personal and national growth. This article explores the significance of remittances and their effects on Filipino families and communities.
1. Supporting Basic Needs and Household Expenses
A lot of Filipino families depend on remittances to cover everyday necessities like clothing, rent, utilities, and food. Especially in rural communities where employment prospects may be few.
Filipino migrants frequently work long hours overseas, sacrificing their comforts to provide their families with opportunities that they did not have themselves. The remittances sent to their family allow them to afford more.
2. Enabling Access to Education
Filipino families prioritize providing education as it opens opportunities for a better life. But education in the Philippines comes with a cost, from tuition fees, uniforms, school supplies etc. These expenses add up and for many, it is the remittances that send children to school to ensure a brighter education for the next generation.
Choosing a remittance service that allows them to send more money home is important. With OTT Remit’s rewards program, they don’t have to worry about transaction fees when they use their points to pay $0 CAD fees. This way, their families are able to maximize the funds you send.
3. Covering Healthcare and Emergency Costs
In the Philippines, medical care can be very expensive, particularly in times of emergency that requires hospitalization, medication, etc. Even regular doctors are not accessible to most. Being able to budget for such things is a luxury, especially in rural areas where access to affordable healthcare is limited. But when it is not possible, migrants frequently send money to pay for their families’ medical expenses, prescription drugs, or health insurance.
Remittances serve as a financial safety net in times of natural disaster or medical emergency. It’s critical for Filipino migrants living overseas to know how to transmit money safely and promptly when they need it.
4. Driving the Philippine Economy and Community Development
Remittances has always been a foundation of support for Filipino families and plays an important role in improving the Philippine economy. In 2023, personal remittances accounted for 8.5% of the Philippines’ gross domestic product (GDP). This was a record high, representing a 3% increase from 2022. These money transfers don’t only support families but fuel local economies when they are used to purchase from small businesses and create jobs in local marketplaces. Remittances is a key source of income for the Philippines and are a key driver of economic growth. Choosing the right partner for international money transfers to the Philippines ensures more of your hard-earned money contributes to your family and the nation’s progress.
5. Strengthening Emotional Connections
Beyond the financial aspect, remittances represent a deep emotional connection. For Filipino migrants, sending money home is a way for them to stay connected to family, show their love and their support even from miles away. Every transaction represents their commitment to family and their shared dreams.
6. Empowering Women and Breaking Barriers
Among the total number of OFWs who worked abroad from April to September 2023, 1.20 million or 55.6 percent were women. majority or 64.1 percent were engaged in elementary occupations1, followed by those working as service and sales workers at 14.1 percent. The remittances empower families, shift traditional gender roles, and contribute to financial decision-making back home.
Challenges in Sending Remittances
Remittances have a huge impact but sending money home can come with challenges like high transfer fees or unfavorable exchange rates. Choosing a reliable and convenient service like OTT Remit helps maximize the value of every dollar and send more money home.
The Heart of Filipino Resilience
If you’re a Filipino migrant looking for a trusted partner to send money to the Philippines, OTT Remit is here to help. With seamless transfers, we ensure your hard-earned money reaches your family safely and efficiently. Get started with downloading the app and experience a rewarding way to send money with $0 CAD fees on the first 2 transactions!
Disclaimer: The views and opinions expressed by the authors in this publication are their own and do not necessarily reflect the views of OTT Remit, OTT Financial Inc., and the OTT Group of Companies. This publication is provided for general information purposes only and should not be considered as exhaustive or comprehensive in covering all aspects of the discussed topics. It is not intended to replace seeking advice from a specialist or professional.
