WHILE ON a recent trip to Japan, I heard a story about an OFW driver who nearly wasted away his earnings. He worked in Japan for close to 30 years, and at one point was earning an equivalent of P400,000 a month with overtime pay. He had a wife and child back home in the Philippines and was able to send his child to school. However, he was always out drinking at bars in expensive Tokyo while having several relationships with other women. "Puro good time," they say.
Well the guy wasnât able to hold on to his job due to his drinking problem. His employer asked him to resign, and he was given an equivalent of P2 million as separation pay.
His Filipino friends could only shake their heads in disbelief at how he wasted away the opportunity to have a well-paying job, and how he was not able to save any money to make his life better. Last they heard, he was back home, bought himself a tricycle which he drives for a living, and is staying with his parents since he could not afford to buy a house of his own.
Filipinos who leave the country to work overseas do so to earn more money in order to help support their families back home. However, not every OFW gets to lay out a stable financial future.
The problem, says Raul D. Dimayuga, senior vice-president and head of the global remittance division of the Bank of the Philippine Islands, is âinitially a lack of awareness of what to do. For many of [OFWs], it is the first time that they are able to receive a larger amount of money than what they used to and if they are not properly advised, they would tend to use the funds for consumption.â
This is why BPI has embarked on providing a financial literacy program to its clients, especially OFWs and their beneficiaries. It has conducted the BPInoy Learning Series caravans in Iloilo, Cavite, Dumaguete, Davao, and most recently, in Cebu, and Cagayan de Oro, among others. The series seeks to show that financial control is possible even away from home. By using interactive modules, participants are taught how to save, invest and make use of available technology to do banking transactions. BPI services and products designed specifically for the global Filipino are also introduced, such as the BPInoy Remittance, BPInoy Savings Account, BPInoy Save-up (build up savings account with free life insurance), BPInoy loan products, and Credit Card.
Dimayuga says these are the basics that an OFW must have to be on the road to financial stability:
1. An account for himself separate from that of his beneficiary. âThis way he is able to segregate his savings from his transactional account, i.e., funds needed by his beneficiary for day-to-day expenses.â
2. A plan for himself in terms of how much to save and set aside as budget for the family expenses which he agrees on with his beneficiary. âThis way his plans are aligned with that of his family and the road to financial stability becomes a family affair. Ideally, he should be saving between 10 to 20 percent of his monthly income.â
3. An investment plan.
âOverseas Filipinos contribute substantially to our countryâs growing economy. As a bank, we want to provide financial education to empower our global Filipinos to fulfill their dreams that fueled their decision to go abroad,â adds Teresita B. Tan, head of overseas banking and channel services group of BPI.
Great article. Thanks for the info. Now, if you can only make the font size larger and stop being cute, it'd be easier to read.
Of course, you can always expect lazy-reader like me to press Control+ just to read you, then Control- afterwards, right?
There should be a pre-departure orientation for OFWs where they orient the workers on their rights, where they go to for help, and handling money. OFWs should only target 5years of working abroad and return home with enough savings to start a business.
I hope most of our Filipino OFWs learn from this mistake. This lesson should also apply to us families who receive remittance from them. Hopefully we learn to save some of these remittances and spend them wisely.
hi, the font is too small for us with eye problem
Hi, sorry about the font problem. I can't figure it out--I am so non-techie. :-) Bear with me please. I will ask the geek squad to help.
While OFW needs pre-departure Orientation, it might also be a better idea if the gov't. can find a way to give orientation to the families or beneficiaries to help them better understand the life of an OFW.
First time OFWs are required to attend PDOS (pre-daparture orientation seminar). I never attended one but according to my husband it's crap. It could be a really great opprtunity to provide useful information to our OFW pero la daw talaga kwenta.
just want to let to know the Filipino people about the devils work por el Presidente .... investigate or else everyone will be a conspiracy of her SIN...
Gracias y Dios bendicen!
this is a forwarded message:
The Financial Analyst of World Bank would like to inform each and everyone of you that the present currency exchange rate of US Dollar to Peso is actually $1 = P52. Your government is manipulating the exchange rate for some years now. It is very much improbable and impossible that the Philippine Peso is appreciating compare to Euro, British Pound, Rials, and any other foreign currency. Even your ASEAN neighboring countries are suffering from the Global Crisis. Singapore , a developed country is affected by depreciation of their currency what more of your country?
> We admire you for your hard work but we also pity you for having such a very corrupt government that is taking advantage of your hard earned
money.
>
> The ARROYO ADMINISTRATION is blatantly milking each and every OFW's all over the world of billions of pesos for its own greedy, selfish ends. Investigations reveal that this milked money from OFWs will be spent to BRIBE not only PGMA's pet CROCODILES in CONGRESS but some in the SENATE as well for her to PERPETUATE IN POWER BEYOND 2010. The rest would be deposited to the family's SECRET ACCOUNT in Switzerland .
>
> Another money-making scheme is the LOTTERY DRAWS. Filipinos should be aware that all LOTTO DRAWS are orchestrated, and big money goes to the two sons of the lady president. Recent example is the SUPER LOTTO 6/49 draw, where supposedly two individuals from Luzon won. Do you know WHO these individuals are? It's Mikey and Datu, who else? One might ask how can the draw be rigged when it is being televised in front of millions of viewers. The answer is simple. As you all know, all bet combinations are being entered into PCSO's main data base as it is on-line, therefore, it is easy to determine which combinations were NOT betted upon. If they want to raise big money, no winners will be declared until the JACKPOT reaches sky-high because they could dictate the outcome at will.
When it's "HARVEST TIME", viola!, there would be "winner or winners" and the process repeats all over again. One might ask how this is being done.. One insider told our investigators that actually the "DRAWN BALLS", six balls to be exact, are the only set which could fit into the transparent tube which sucks the balls up. All others are slightly bigger than the diameter of the tube which could not be distinguished by the viewers, therefore, there's no way they could be drawn! You Filipinos are being skinned alive, fried in your own fat and lard by your own government. Do you ever wonder why president-elect BARACK OBAMA, avoids your president like a stinking leper?
-World Bank-
> KINDLY PASS THIS MESSAGE TO ALL YOUR FRIENDS UNTIL IT REACHES MILLIONS OF FILIPINOS AROUND THE GLOBE.
Government should spend some advertising campain to educate the OFWs more about saving money and financial literatures.
OWWA/POEA centers should think of any regular training for OFWs in a recurring basis.
nabulag ako dahil sa font mo . . . . Anyway, good read. Printed it na lang.
The Goverment together with the Private Buss. sector should provide an Investment Scheme for the OFW's, if they really care about our earnings they should help us to look for high yielding investment but secured one.
please advice further to your program save with full time insurance.
thanks,
joel
Nice post
ofw's should have pension fund program something like GSIS for those in goverment service
This is a common stereotype. As a former OFW myself, I don't think this problem is unique to OFWs. The problem is magnified for OFWs only because they have more money, hence, more opportunities to have money problems.
The reason most people are poor is because all their lives, all theyâve known is not having enough money. They have never experienced having more money than they could ever expect to spend so they don't plan for it. When they do receive more money, they don't know what to do with it. This makes them uneasy. To solve the uneasiness, they spend the money so that it goes back to a level that is comfortable for them. This is the "psychological wallet" that Bo Sanchez is talking about in his financial seminars.
The challenge to every Filipino (not only to OFWs) is to increase their own financial IQ. When we become wiser financially and learn to build rich money habits, we will be able to solve our own money problems. If we can take care of ourselves financially, then becoming an OFW would be a thing of the past.
As an OFW myself, in addition to my remittance covering the monthly expenses of my family, I had opened time deposits about the rests of the money I earned in excess during every six month of my contract as an engineer in Middle East. In that way, I was able to plan the investment I want to take while working as an OFW.
I'm an OFW with a travelling habit. I sometimes have that problem splurging on something that I wanted. However, that's where it ends as I know when to stop. I'm able to save some but I still need financial advice on where to maximize investment. It would be great if the OWWA will conduct something about it.
Oh yeah. why do they put Philhealth as a mandatory payment? It's ok if you can use it but for a single person whose parents are not even 60 and not in the Philippines, that 1000pesos is just a waste of money. If I could give it to my sister or brother as a beneficiary, then at least it would be useful. Sorry! I'm just ranting as I feel that I was robbed by the government of something that I can't even benefit from.
As an OFW, the security of tenure for our work is not stable as we can be terminated when our employers decide any time they think it is necessary. In such case, we whould save our monthly salaries in excess of the regular needs of our dependents and invest it intelligently when we settle for good in our country. in my case, I place my savings thru time deposits while I'm still working overseas.
Thanks to Banks like BPI for encouraging OFWs to save. But still, OFW's (or nearest relative-beneficiary) who wishes to set up small business are still hesitant to get loans from banks due to (maybe bashfulness or ignorance from their part?) afraid that the banks might charge higher interest. Suggest, to banks to offer assistance in setting up their own businesses in how the banks could help them (OFW beneficiary) and grow together their business.
I think we have the PDOS w/c is d orientation. It needs only to be improve. It must be free (shouldered by d gov't) and compulsary. Why free we owe OFW very much.
Great tips for OFW! :)
Hope the said story will not happen on our kababayans abroad, espclly in the Mid East.
Maybe they could target the large OFW groups in the usual destinations rather than having the caravans locally. Financial literacy should not just be for the OFW but for the entire family.
Great article.. only thing that must be strike out if indeed we are concerned about OFW financial future is not to drown them with loans and credit cards or at least educate them on asset accumulation.
Another thing is to make sure they are really given the investment guidelines for higher rate of returns and not to put their investments on savings account....
God bless!
I was an OFW before and is currently working as a Service Desk Supervisor in a call center. What OFWs should think about is what life has to offer them when they get back to Pinas. Is there a local job they can get or a business to start with? Or are they just looking forward to work in a foreign country again? Kasi kung tapos na kontrata mo abroad after say 3-5 years, ano na ang susunod? We should all learn how to generate assets and become financially free. Hindi madaling gawin yun. we need to research and ask qualified people on how to do that. We should maximize our idle times. Magbasa ng mga articles or news na makakatulong. Read books like that of Robert Kiyosaki's "Rich Dad, Poor Dad". We must use our time wisely. ;)
sa WESTERN UNION pa rin
ako kahit na medyo mahal..
pease of mind ka sa pera mo..
mabilis pa!
IRELAND
Sooooo smallll
Thanks for this post. I've done a similar post in my blog calling OFWs to save, save, save! Because the truth is, we're not going to be OFWS for the rest of our lives.
To educate OFWs on financial education is very important. OFWs will learn how they make more money while spending less than what they earned. They be taught how to protect their money from predators. They will know the proper budgeting. They will know how to leverage their money- this means they will be taught how the money will work for them. In Saudi Arabia there are already OFWs as we call them (Over Financially Worried) who are now engaged in network marketing business or MLM (multi level marketing). I hope that our government will support financial education to be taught in schools, colleges and universities. Makakatulong ito na masolusyunan ang poverty sa Pinas. Gumagalang, Paul Pruel, OFW, Riyadh, KSA
The security of tenure of an OFW is only short lived and therefore should save his money in excess of the needs of his/her family. Avoid excessive spending.
The Bible says if we are not good managers in little items, how much of the bigger things. This goes well for the OFW's story.
Money. Much money for the OFWs'. More than they can handle.
This is another challenge for the Church and more work for the Government.
Let us help the OFW's see the pros and cons of money. Lets pray for them.
I agree to save a fixed % of our monthly earnings for retirement and future investment. We should keep a life style within the boundary of our net earnings.
as the saying goes... ubos-ubos biyaya pagkatapos ay wala, we have to know that working abroad especially being ofw is not a lifetime opportunity compare to immigrants, ang happenings pag natikman mo na e control na dapat sa susunod pare2ho lang naman ang lasa nun eh, nasa huli ang pagsisisi talaga, sbagay ang hirap din naman magtrust sa financial institutions sa pinas kasi nga wala rin namang kasiguruhan pagdating ng oras once na pasukin ng pulitika ang investment just like what happened to lots of preneed companies tsk...tsk...tsk..
yes i agree on this article and some ofw's really spend their money wastefully. but some are out there who has hard earned money, but cannot put up a business because of governments red tape and bureaucracy. its really bad. not to mention the high prices of commodities, its really hard to earn nowadays.
kaya nga sometimes - - others may think - magamit na ang pera, kaysa mamatay ako ako di ko nagamit.
This is great... but please make your font internet-friendly or readable. I have a hard time smelling...err reading it!
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I think the financial literacy program of BPI should be adopted not only by Banks, but by all companies as well here in our country. It should also be taught in schools (as early as high school).....the main problem with handling finances is that most Filipinos are not exposed early enough to financial literacy programs. This must be now part of school curriculum. This is applicable not only to kids from struggling families but also to kids who are "well-to-do". Handling money well (being able to discipline one's self to save and invest) is one critical step towards improving one's present economic condition.
Hi, thanks to the advice. Its own common sence to save while still an ofw. Many ofw (not all), do the same thing as this guy who work in japan. I have my co-worker did the same, so, its not too late to start's savings. We are all always an OFW.
i don"t know if you really know what ofws need. They need a real working example or options on how to go over and invest their hard earned money. An advice from people like you for them to have an investment plan without any explanation is no good! many ofws got savings but they dont know how to maximize those savings .
Thanks for the tip Jose Bay, pressing "Control +" it helped a lot to me, I got blurry eyes. I also agree with you, this is a good article with a "moral lesson" to learn.
I'm sorry, but while I realize the intent of your article is good, I find it very difficult to believe that a driver in Japan would be earning that much (>USD $8k per MONTH) unless he works for the Japanese mob. Then again, if he works for the mob, why give him separation pay?
after reading this I wanted to leave my blue collar job and work as a driver in Japan. Is the driver mentioned in the story a taxi driver or a private driver? Is it really possible to earn that much in one month? Php 0.4M in one month?
My colleague has openned an account in BPI a year ago and transfers a part of his earning to that BPI account. Im not sure how much saving he has at the moment.
In my opinion, we should not discourage Filipino workers seeking job abroad since compensation and benefits outside our country are more significantly better. Plus, the remittances coming from OFW helps our economy to stay afloat amid the global crisis. What the government and non government institutions should do is to improve financial literacy of Filipinos through proper education and trainings. Education about entrepreneurship is also highly recommended to alliviate poverty in this very rich country.
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Great Stuff.. I wish you could publish more on this issue to enable you educate OFW's on proper handling of their income. Suggestion, advice, and business ideas is also helpful.
Good topic. Very normal ang 'puro good-time' mentality sa mga OFWs. They should save as much as they can while they still have their jobs. Hindi naman permanent na nasa ibang bansa tayo.
BPI sponsored article?
useful insights from both the author and feedback
nice article. it is a good reminder for OFWs, myself included, to save. i must point out though that the interest banks pays their depositors is a joke.
apologies for the bad english above...should be..."banks pay their depositors....". tnx