Top 10 Ways Remittances Support Families Back Home

Countries worldwide rely heavily on remittances to support their economies. Take Tajikistan, for example, which generates a massive 51% of its GDP through international money transfers; Samoa derives 34%, and Nepal relies on 26.6% from this vital source. Undoubtedly, these money transfers from overseas workers, travellers, and expatriates are a vital lifeline for these nations. But, remittances are important not only for the economic contribution they make to the country but also for their impact on families back home. In this article, we will explore the various ways remittances help the families of immigrants who tirelessly work abroad to improve the lives of their loved ones.

How Remittances Help Families of Immigrants Back Home?

Here are the ways cross-border money transfers make a difference in people’s lives: 

Fulfilling Household Needs

The most basic, yet crucial, role of remittances is fulfilling the household needs of families waiting for their loved ones to send money home. These basic household needs include food, utilities, and clothing, which are essential for survival.

Families with a single income from a family member working overseas rely entirely on international money transfers. For this reason, expatriates prioritise sending money home in a timely manner. It ensures their dependents have food on the table, a place to sleep, clothes to cover them, and basic utilities like electricity, water, etc., to live a decent life.

Funding Education Of Children

Migrants transfer money to homes to pay for their children’s education. Remittance is crucial in paying their tuition, school, and college fees, as well as buying books and uniforms, and accessing essentials to pursue their academic endeavours. Educating future generations further helps the immigrants invest in their families’ tomorrow, making them self-reliant and breaking the cycle of poverty.

Paying Medical Expenses

Timely medical assistance is critical for saving lives and maintaining overall well-being. It is a universal need that affects everyone, from newborns to the elderly, but it often requires significant financial resources.

Remittances make these healthcare services accessible for families of migrants living in their home countries. They use the money they receive to access essential health services, such as physician visits, surgeries, and medications.

Supporting Elderly Family Members

After taking care of their children for so many years, parents eventually become reliant on their children for finances to survive. Additionally, most countries don’t have strong pension systems or social security, making it challenging for the elderly to financially sustain themselves in their later years.

The majority of people choose to work overseas because there are few opportunities in their home country and they want to provide better care for their parents. Money transfers enable these immigrant children to deliver financial assistance to their elderly family members from overseas. The money these parents receive helps them to live comfortably and pay for their daily expenses and medical bills, among other needs. 

House Payments

Whether renting or purchasing a new housing unit, the capital families receive through international money transfers can help them secure a place to live. Remittances even provide the financial means to upgrade housing and renovate their homes to protect them from harsh weather conditions. Additionally, these funds enable families to enhance their living conditions by purchasing new land and building their dream homes.

Special Occasions

Expatriates can’t physically join their families on every special occasion, such as close weddings, birthdays, anniversaries, and even festivals. However, they send money home so that their loved ones can savour these special events even in their absence and make lasting memories. The money transferred on these special occasions isn’t only used for celebration but for gifting purposes.

Each year, RemitBy gets a lot of money transfer orders to send money to Nepal from Australia near festivals like Dashain, Maghe Sankranti, Lhosar, Tihar, etc.

Shopping

Every household needs to make essential purchases from time to time, whether it’s goods or services, in order to maintain a better lifestyle. From furniture to electronics, having the necessary funds allows them to shop for quality items. 

Respondents work hard in foreign countries to provide the best life for their families. Remittances allow them to support their loved ones and make these purchases.

Security During Emergencies

Emergencies can happen to anyone, anytime and anywhere. It could be anything from natural disasters to sudden financial loss or major health crises. As most of these emergencies require finances too quickly, remittances help make this possible.

Online remittance platforms like RemitBy offer quick money transfers from Australia to Nepal, allowing individuals to handle urgent situations at the right time.

Consequently, through remittances, families receive immediate financial relief and avoid falling into debt and even permanent losses. 

Encouraging Savings and Investments

As important as cross-border transactions are for emergencies, they are also significant for encouraging savings and securing the future. The money dependents receive through remittance can be used to pay for basic essentials or related expenses as well as save the rest. They can even keep their savings in a savings account or invest in gold or real estate.

Reducing Poverty

Remittances have aided families in escaping poverty’s grip. By covering basic necessities and even desired purchases, remittances improve their standard of living. In fact, it is even seen by the World Bank in recent studies that cross-border money transfers are linked to lowering poverty levels.

Wrapping Up

It is quite apparent that remittances have a huge financial impact on families by supporting and enhancing their living. However, beyond monetary impact, remittance acts as an expression of love, care, and responsibility, connecting people despite the distance. 

If you also wish to leverage the perks of remittance and send money to Nepal from Australia to support your families, RemitBy can help. Our online remittance platform is accessible 24/7, facilitating quick and secure money transfers to Nepal. Explore our website to learn more about our services. 

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