Global financial advisor, Suze Orman who runs her own show on CNBC recently released a statement cautioning family reliance on Overseas Foreign Workers (OFW) remittance. The money flow will sadly end eventually and will the family be financially capable to carry on?
“Anything can happen at any time and the problem that is going on out there [abroad] when one person from over there stops sending money in here, you’ve not only affected one person there but also four, five or six people over here. Then that starts the very dangerous possibility of things going wrong,” Orman stated.
The Filipino economy has been highly stimulated by an OFW’s monthly pension. These workers have accumulated $20 billion dollars and have invested it into the Filipino economy through daily purchases bought with remittances.
“And once we understand it is possible that that check would stop [coming], you would think twice before you go out and buy a flat screen TV or you do things other than saving that money,” continued the financial guru.
Orman who is familiar with this topic because she herself has hired Filipinos as a part of her household staff noticed the pattern of these hardworking laborers mailing their paycheck home to the Philippines. Orman questions why they never save money for themselves. She also noticed that her staff members were not taking their normal month long vacation back home. These OFWs do not want to spend the money to buy the plane ticket to return home.
This pattern of sending the entire check home is not only seen with Filipinos but with the African culture as well. Does this really help families in need? In ways it can be beneficial; however, this does not give people in the Philippines the opportunity to make their own living. Hence, they do not work as hard because they are counting on their monthly capital boost to pay the bills. They are unaware of the harsh reality which could happen any day—no more remittances.
“But nothing feels greater than to have a sum of money in a bank account somewhere. And that’s what they should be striving for,” Orman concluded. This is a goal that people worldwide should aim for whether or not they rely on OFW checks.
What do you think will happen to these families once the remittances come
to an end? Comment below to answer.