You would expect that Overseas Filipino Workers (OFWs) would be the image of financial success. But in reality, the opposite rings true. Most OFWs suffer financial problems even with their better earnings and years of hard work. This is because they have inefficient money management.
Commission on Filipino Overseas (CFO) states that the main cause of the problem is the over-dependency of the families and relatives.
The common misconception of most Filipinos is going abroad is the solution to all their money problems, that is why workers abroad struggle despite their higher incomes.
Another source of the problem might be because even before being abroad, the family might have accumulated debts already due to loans and over-borrowing in the belief that the money would be returned once hired overseas.
There is also the unrealistic expectations of both the family and the migrant expecting automatic improvement in the quality of life and finances. They also have less restraint and easily give in to requests from their families and remittances and gifts from abroad.
The worst thing is that they don’t save or plan for long term. They don’t have specific goals and are easily distracted by commercial things.
Bangko Sentral ng Pilipinas (BSP) states that eight out of ten Filipinos don’t have bank accounts which support the statement of CFO that financial literacy among Filipinos are very low. Filipinos simply lack the will to save and most think that remittances last forever.
There is no law that states that you shouldn’t do all those things mentioned above but experts advise that you save for the future rainy days and follow that golden rule, to save more than they spend and not to live beyond their means.