OFW families now saving more for the future

MANILA, Philippines – More beneficiaries of overseas Filipino workers (OFWs) are turning to savings to secure their future, data from the Bangko Sentral ng Pilipinas (BSP) showed.

BSP Deputy Governor Diwa Guinigundo told reporters that the percentage of households that allocated portions of their remittances to savings has steadily been increasing since the second quarter of last year.

Guinigundo pointed out that the central bank’s Consumer Expectations Survey (CES) for the first quarter of 2010 revealed that percentage of households that allocated money sent home by their relatives abroad increased to 50.4 percent in the first quarter of the year from 44.8 percent in the fourth quarter of last year.

“The percentage of households that allocated portions of their remittances to saving, which has been steadily increasing since the second quarter of 2009, rose further to 50.4 percent,” Guinigundo added.

Of the total 5,496 household respondents of the survey conducted between Feb. 10 and Feb. 29, the BSP said about 534 households with relatives abroad received remittances.

The BSP official said the survey showed that households that used the money sent home by their relatives for investments went down to 5.8 percent in the first quarter of the year from 7.1 percent in the fourth quarter of last year.

However, he pointed out that those that apportioned their remittances for amortization or full payment for houses purchased increased significantly to 15 percent from 10.5 percent during the period.

OFW remittances inched up by 5.4 percent to a new all-time high of $17.35 billion last year from the previous record level of $16.43 billion in 2008.

This year, the BSP sees the amount of money sent home by Filipinos abroad growing by six percent to at least $18.1 billion. OFWs remittances went up by 8.5 percent to $1.372 billion in January from $1.265 billion in the same month last year.

The survey showed that 97 percent of the respondents spent part of the remittances for food and other household needs while 69.5 percent used the money for education expenses.

Data revealed that 56.7 percent used the remittances for medical expenses while 48.5 percent spent the amount for debt payments.

Guinigundo also noted that the percentage of OFW households that utilized remittances to purchase consumer durables or appliances increase to 30 percent in the first quarter of the year from 26 percent in the fourth quarter last year. –Lawrence Agcaoili (The Philippine Star)