For many Filipinos, 2023 is a new year faced with the same economic challenges from 2022. Sustained high inflation has unfortunately made many Filipinos familiar with food and job insecurity issues by now.
While the weak peso has benefitted remittance recipients, the increase in peso terms has been offset by the rising cost of living for so-called overseas Filipino worker or OFW families in the country.
Despite this, experts are hopeful more recent developments could still favor OFWs and remittances. Global labor shortages have led host countries to reopen their borders and express more demand for migrant workers, particularly in the healthcare and recreational industries.
From January to September 2022, 760,000 OFWs were deployed, a 40 percent jump from 2021.
The increased demand, along with recent deals with destination countries like Singapore and the United Kingdom aimed at improving the OFWs’ working conditions, could boost the remittances by 4 percent this year.
However, the global economy remains volatile. This, the experts say, makes it the perfect time to create and maintain better money habits for a better financial future in 2023.
“The financial landscape has been anything but stable over the last few years. Filipinos, especially OFW families, should ideally still exercise ‘cautious optimism’ when planning their finances for the coming year.”
Earl Melivo, Interim APAC Managing Director
For OFWs, there is the added challenge of helping their families maximize remittances back home while also budgeting for themselves abroad. Most times, the way through is for workers to make the most of their hard-earned income as they work towards better opportunities.
Here are three OFW families can save and do more amidst inflation and other economic challenges this year:
Avail special benefits or privileges for OFW families
There are many programs that look out for the welfare of migrant workers and their families. In the Philippines, the Overseas Workers Welfare Administration (OWWA) is an attached arm of the Department of Migrant Workers which provides benefits for its active members and their beneficiaries. These include medical insurance, livelihood assistance, and scholarships for dependents.
Maximize value out of sending money
Sending the right amount of money can make a difference. Sending big or small amounts at a time each has its pros and cons. Smaller and more regular transfers are often easier to budget. On the other hand, transferring larger amounts on occasion could be maximized when foreign exchange rates are high.
Set financial goals as a family
A recent trend on social media is forecasting and setting goals for the year. OFW families can ride on the same trend and discuss what they want to achieve together, and as individuals, over a meal and/or a video call. While everyone has personal goals, having specific financial goals for the family in mind, like saving for a down payment on a house or paying off debt, can help motivate each member to make their own adjustments in working towards this common goal. This is not only a productive start to the year but also a good way to build stronger family connections.
“Budgeting and realigning our individual and family priorities to achieve financial goals may not be easy, but it is not impossible. Services like WorldRemit can help OFWs and their families achieve these goals quicker and support the foundations of a financially secure future in the long run,” said Melivo.
