I found this video on YouTube produced by the Economic Resource Center for Overseas Filipinos (ERCOF).
The video starts with testimonials about how OFWs money goes down the drain through
- consumer spending by their family (latest cellphone, new shoes and other non-essentials)
- excessive spending when the OFWs visit home (pa-kain, lakwatsa, kasama buong barangay),
- loans (utang) that don’t get paid
- “investments” in failed businesses or scams
The discusses the value of savings to build a strong financial foundation. At the end, you’ll find a strategy to manage OFW money. It’s an advocacy, really. See the video, then I have some remarks after.
Key Message: Save your money in Rural Banks which have higher rates for time deposits.How they do it: The money you save in the rural bank is eventually made available as loans to local micro-businesses. The micro-businesses create products/services which makes the loan a productive loan (i.e. generates more money for the borrower). As the video states: “Kumita ka na, nakatulong ka pa”.I know of the FirstCountry Bank that has a “Katuparan Special Savings” product that could give you as much as 10% per annum interest (compared to ~2.5% p.a. for commercial bank time deposits). I personally invested in FirstCountry Bank two years ago. Check out their products, ask the important questions and see if it’s the right investment for you.
Visit your nearby Rural Bank and find out if they have savings or investment products that work for you.
rural boy in an urban world
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