personal finance tips

5 money management tips from OFW families

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5 money management tips from OFW families
Let BPI Pinoy Abroad, a program consisting of financial products and solutions, help you achieve your goals

Try to look up “OFW money management” on the internet and you’ll see tons of articles sharing how overseas Filipino workers (OFWs) can save money.

Even though OFWs know how to manage their finances, if their families don’t know how to grow their remittances, they could end up with no savings or worse – fall into a debt spiral.

BPI recognizes the struggles that Filipino families experience when it comes to managing remittances sent by their loved ones. That’s why this year, they’re launching the BPI Pinoy Abroad program.

BPI believes that the responsibility doesn’t only lie on the overseas Filipinos’ shoulders. The families who receive remittances back home should be financially responsible as well.

Here are some tips from Filipinos who have family members who are working abroad and how BPI Pinoy Abroad programs can help you do what they do, too.

Have a savings account specifically for remittances

Jessie Inid, who has been working as a seafarer for 26 years, relies on the trusty old formula of growing money which is INCOME – SAVINGS = EXPENSES. He trusts his wife to properly manage the remittances he sends monthly to keep them from going into debt.

While it’s helpful to properly manage your budget, things shouldn’t have to stop there. Take your money management skills to the next level by creating a dedicated savings account for remittances.

An easy way to do that is through the BPI Padala Moneyger. It’s a safe and secure way of managing your money. And it’s specially designed for OFW remittances. You can check your balance, transfer funds, even pay bills through online and mobile banking. The best part is there’s no maintaining balance required as long as you receive 4 remittances in your account in a year.

Minimize the costs of sending and receiving money

Whenever Karen Aragones’ uncle sends her money, she always looks for the best foreign exchange rates first. “Cino-compare muna namin sa ibang money changer yung rates para malaman namin kung saan kami pwede magpapalit (We compare rates in different money changers first to know where we can get the best exchange rate),” she said.

Aside from waiting for the best foreign exchange rate, it’s also wise to look for sending methods with lower fees like the BPI Pamana Padala. It has lower remittance fees compared to cash pick-up. It’s also convenient because you can send money anytime, anywhere through online and mobile banking.

Know the difference between savings and investments

Just like Jessie, Osea de Guzman’s aunt, who works in the U.S. as a caregiver, says they create a budget list and only buy discounted or on sale grocery items. This is so they can allot more money for both savings and investment. Savings are for emergency purposes while the investment is in preparation for their aunt’s retirement.

There are many investment options to choose from but BPI’s Investment Fund makes it easy for overseas Filipinos like her aunt to invest. Whether you’re a conservative investor or willing to take bigger risks, with the help of their Investment Advisors, you can feel at ease knowing there’s someone who can guide you to achieve your financial goals. There are no penalties if they decide to cash out their investments.

Look for loans with fixed interest and flexible payment terms

For Dianne Santos, whose sister works in Singapore, having a second source of income helps make ends meet for their family. They applied for a personal loan with the lowest interest rate to fund their small laundromat business and help them pay for their expenses.

Since they’re not restricted with high credit interest, they’ll have a more comfortable cash flow during days where there aren’t many clients and they’ll have to pay for their laundromat’s dues. One loan provider that does that is BPI’s Personal Loans. They offer OFWs fixed interest and longer payment methods. And it’s easy to apply because unlike other providers, they have minimal requirements and no pre-termination fee should you decide to pay your loan earlier than its maturity.

Constantly educate yourself with financial solutions

Marami naman yan dyan eh. Kailangan mo lang talaga tyagain matuto (There’s a lot of financial solutions available out here. You just have to be willing to learn),” said Paula Lopez. Her father has just left for UAE to work as an engineer. “Determined ako mapalago ng mabilis yung pera namin kaya nagtitingin ako ng mga pwedeng pasuking investments at best ways to manage our money (I’m determined to grow our money fast that’s why I’m constantly on the lookout for best investments and ways to manage our money).”

Understanding and maximizing different financial services is the key to financial freedom. Both OFWs and their families should stick to these practices and work together to achieve their dreams.

Know more about how BPI Pinoy Abroad program can help you manage your money by checking their website: –

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Bank of the Philippine Islands

The 167-year-old Bank of the Philippine Islands is the first bank in the the Philippines and Southeast Asia. We are licensed as a universal bank by the Bangko Sentral ng Pilipinas to provide a diverse range of financial services: deposit taking and cash management, payments, lending and leasing, asset management, bancassurance, investment banking, securities brokerage, and foreign exchange and capital markets.