Although it’s undeniable that one of the biggest lures of working abroad is the higher salary, it stands as a fact that many OFWs are still experiencing money-related struggles even after working for many years in foreign countries.
This, of course, is a common scenario for many OFWs and their families. Why does this happen?
Here are the top 3 reasons:
1) Over-Dependent Family Members
According to the Commission on Filipinos Overseas (CFO), the big reason behind this problem is ineffective management of finances. For instance, too many families and relatives are depending on OFWs as their main financial sources.
According to Andrea Anolin, CFO executive assistant for joint migration and development initiative:
“People tend to think that once you go abroad, it seems that you get a higher income and that will solve all your problems.”
2) Excessive Debt
On top of that, many have the false notion that borrowing big amounts of money is acceptable since they can easily pay it off once they get employed abroad.
As Anolin accurately summed up, “The families who are left behind and also the migrants themselves have very unrealistic expectations. They equate going overseas with an automatic improvement in the quality of their lives.”
3) Some Aren’t Saving Money
Another factor that leads to financial difficulties is that many relatives and even friends are pestering OFWs for gifts. Thus, it can be hard to save money from the hard-earned pay.
Bangko Sentral ng Pilipinas (BSP) has previously released an alarming report that said about 8 out of 10 Filipinos do not even have bank accounts. Anolin pointed out that financial literacy is particularly low in the country.
Warner Dawal, senior emigrant services officer for Peso Sense Program said “It’s not the lack of money to save. It’s the lack of the will to save. The most common misconception is the families here in the Philippines think that the remittance they receive is forever.”
Video: Watch abs-cbn report here: