KM Viray
If you were to ask Overseas Filipino Workers (OFWs) why they opted to work abroad instead of the Philippines, many would answer you, “To provide a better life for my family.” No one can question their desire to have their families live easier lives. However, why is it that some OFW families remain poor despite the monthly remittances they get?
According to the Commission on Filipinos Overseas (CFO), over-dependency of families and relatives of OFWs is one of the common causes why workers abroad struggle with their finances, despite their higher pay.
“People tend to think that once you go abroad, it seems that you get a higher income and that will solve all your problems,” says Andrea Anolin, CFO executive assistant for joint migration and development initiative, in an interview with ABS-CBN News Channel (ANC). She also noted that most of the time, when OFWs leave for the first time, they leave behind them a mountain of debt that they must first pay off before they can fully focus on their families.
Anolin says that the families left behind—and even the migrant workers themselves—unfortunately have very unrealistic expectations. They automatically think their status in life has been upgraded because they will be earning in foreign currency which are relatively high compared to the peso.
According to a study, about 60% of OFW families remain financially challenged even with all the opportunities migrant workers have outside the country. According to Edwin Corros of the Episcopal Commission for the Pastoral Care of Migrants and Itinerant People, the challenges faced by OFWs include lower wages than what was promised, abusive employers, and other external factors that contribute greatly to the worsening economic situation of overseas workers. However, the biggest problem actually lies in the OFW himself most of the time.
There are two types of mentality that some OFWs have that hinder their progress:
Balikbayan box mentality
Nothing is more exciting than opening a large box full of goodies. These include clothes, shoes, chocolates, canned goods, accessories, and other luxury items that can only be brought from other countries. According to Corros, while some people see the balikbayan boxes as heaven-sent, these boxes actually are one of the main culprits why OFWs remain poor. Many OFWs tend to splurge on these boxes just to give their families a taste of the good life. There’s nothing wrong with wanting this, of course. However, many OFWs fail to save up for a rainy day.
“We don’t really save for the rainy days. We don’t really think long term. Our plans, our objectives are vague and we don’t really know how to get from one place to the next. So it’s easy to be lured by commercial spending,” Anolin said.
One-day millionaire
It’s natural for Filipinos to celebrate the homecoming of a family member who has been away for a long time. What better way to welcome them than with a nice party with good food and a roomful of friends, right? But then, these parties go on and on and on. During their short vacation, some OFWs tend to go overboard and blow their budget on a lot of unnecessary things: nightly parties, weekend getaways, shopping sprees, gambling, and so much more. Sometimes, in a two-week vacation, some end up spending tens of thousands of pesos. According to the study, “This whole one-day millionaire attitude exhibited by OFWs whenever they come back is a pitiful waste [of] hard-earned money. What could’ve gone to something more profitable or lucrative has simply gone down the drain in their stint back in the country.”
Instead of putting this money into banks where they can be used in the future, they’re spent on unnecessary items and even on people who’ll just forget about you when you go back abroad.
On the other hand, if it’s not the OFWs shortcomings, we have the families themselves to blame. The moment they get their remittances, they splurge on new appliances, parties, gadgets, and toys for the children. Many end up spending every single centavo and eagerly wait for the next remittance to be sent the following month.
Wanting the best for one’s family is certainly not a wrong thing. Who doesn’t want their children going to good schools and their family tasting treats from all over the globe? It’s a must, however, for OFWs to learn about financial literacy. CFO stresses that they should not let themselves end up without savings and should not forget to save more than they spend. Many OFWs have done this, but many more need help.
Be practical and learn to save for a rainy day and only indulge in an occasional treat. It would be tragic if an OFW who spends years toiling abroad returns home for good one day only to realize he has nothing left for his sunset years.
Banner photo from burngutierrez.com.
