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OFWs send home up to 40% more during Christmas

DUBAI: An average Overseas Filipino Worker (OFW) in the UAE sends up to Dh2,200 (Php30,000) to loved ones back home for Christmas, according to remittance company officials.

“Usually maramihan at malakasan ang padala ng mga OFWs during December,” said Edwin Punzalan, Assistant Vice President for BDO Remittance and BDO Country Manager in the UAE.

“December – iyan ang pinaka-peak season sa buong taon,” said Punzalan, who has been in the UAE money transfer business for the past 19 years.

He said the figure was based on “ticket size,” or the range value of the remittance transaction.

Purple Juachon, Philippine Corridor head at Al Rostamani Exchange, has similar numbers, adding that December comprises 10% to 12% of the year’s remittance.

“The only months that come close are March and October,” Juachon said.

Gil Butigan, person-in-charge for Philippine marketing and remittance at Redha Al Ansari said remittances increase by a staggering 100% during the holiday season from 50%, peaking up beginning November and lasting till mid-December.

Butigan also noted that in terms of the number of transactions, the remittance business increases by approximately 30%.

And as remittances go up, so does the volume of balikbayan boxes leaving the UAE for the Philippines.

Allan Michael Bautista, LBC Express senior maketing and sales manager for Middle East operations, said industry estimates peg the number of boxes being shipped per week at between 6,000 and 7,000 during peak.

“We know that sending balikbayan boxes is just one of the many ways overseas Filipinos express their love to their families during this season. Should they choose to make padala, we recommend that they find the best value items to fill their balikbayan boxes with and that they find a freight forwarder they can trust who will ensure that their boxes are safe and secure, handled with the utmost care, and are delivered safely to their families,” Bautista said.

Making up for their absence

Francis Medina, financial literacy advocate, said OFWs spend so much on gifts, balikbayan boxes, or send huge amount of remittances because they want to make up for their absence during this traditional period of family reunions.

“Many OFWs are spending or sending remittances as gifts in exchange for the time they will not spend Christmas with their loved ones. We also believe in the season of gift-giving, a tradition which can be rooted back to our great grandparents,” he said.

Medina said some OFWs over-use their credit cards or take a loan to buy stuff for the whole family back home.

Ben Lebig, Jr. who works as Finance & Decision Support Analyst at an American multinational energy corporation, echoed Medina’s remarks, saying: “During the yuletide season, it has become a tradition among Filipino expats to send extra to their families back home in the form of cash for Noche Buena.”

‘As long as families are happy’

Many experts believe that a downside to the Philippines’ holiday period is the tendency for Filipinos to splurge—approaching the season with a “give, give, give” and “Bahala na” attitude.

Louise Marasigan, an OFW in Dubai, says giving money or gifts to parents—especially during Christmas—is also a way of showing appreciation for them.

“Para kasi sa akin, wala naman ako dito kung hindi dahil sa tulong nila. Ano ba naman ‘yong minsang magbigay, kung buong buhay ko naman tinulungan at pina-aral naman nila ako,” he said.

Meanwhile Butigan said many Filipinos don’t mind going through loans and overspending during Christmas as long as families are happy—even if they become bankrupt for days and it takes long for them to get their finances back in order.

On spending money wisely

Rakhel Camille Pagsanjan, OFW in the UAE, said she has “standards in choosing gifts, (making) I make sure that the gift is something they will use, personalized and they really wish to have.”

However, she said she is not willing to spend more than what she has, just the budget that she can handle.

Medina said it is important to know that the season of giving is not measured only by expensive material things, and that Filipinos—especially OFWs—should have the discipline to plan their finances regularly because they don’t need to overspend during Christmas.

“I advise Filipinos to buy gifts when they are on sale, and buy only one per person. You have a good 10 months to wait for sale events and to know what they want. It’s the thought that counts after all,” he said.

Butigan also supported this point, saying:

“OFWs should save at least Dh100 or Dh200 a month. As you can see, it’s a small amount but it makes all the difference when you decide to buy gifts or spend the vacation in the Philippines, because in a year it will become Dh1,200 or Dh2,400,” he said.

What being an OFW really means

Medina said OFWs should learn how to discipline their loved ones as well when it comes to the value of saving money.

“It’s not at all bad to buy what you want, but emergency also comes unexpectedly,” he said.

Butigan meantime said saving is essential because nothing is assured for OFWs. “I always remind our clients to save, because nothing is guaranteed. Even if you have a very good job with good salary now, you’ll never know if tomorrow, you’ll be out of it. So, learn to save regularly,” he said.

Medina added that at the end of the day, “You’d want to reintegrate back home soon and live with your family comfortably with the fruits of your sacrifices of being an expat.”

Lebig , a Registered Financial Planner, offered two suggestions: “First, celebrate based on financial capacity, this means avoiding disproportionate Noche Buena and really expensive gifts for our pasalubong boxes.

“And secondly, we use the art of budgeting, we all know that come December each year we are bound to send extra cash and our pasalubong box tends to be more expensive,” he said.

Lebig said it would help if OFWs start building up a “Christmas Fund” as early as January by saving a small portion of their salary each month.

Table

(By Jamille Domingo and Jojo Dass)

Staff Report

The Filipino Times is the chronicler of stories for, of and by Filipinos all over the world, reaching more than 236 countries in readership. Any interesting story to share? Email us at [email protected]

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