The financial challenges faced by OFWs are worthy of deeper analysis if only to solve the great mystery of why many OFWs return home practically with nothing to show for years of hard work in a foreign land. The very reason why OFWs willingly face the hardships related to being away from the family is to gain financial stability. What happens between the time of departure up to the time of arrival will determine the results.

financial problems abroad

The Overseas Filipino Workers

Overeseas Filipino Workers or OFWs are of two main groups: the OFW group that flies out of the country in search of career fulfillment and the OFW group that packs up their bags in hopes of providing a materially better life for their families. Of these two, the latter comprises the majority. Of these two, it is the latter who faces the greater financial challenges associated with being an overseas contract worker.

Although not always true, the former usually has more options compared to the latter. It is typical for Filipinos to join the long line of OFW hopefuls because they see no other option left for them in our country. This is probably the reason why majority of OFWs are married and have families of their own. Being married and having  a family puts greater pressure to provide more and working in another country is widely believed to make this happen. There are however challenges that need to hurdled to succeed in this objective.

Financial Challenges Faced by OFWs

Saddled with Debt

Many OFWs carry a  heavy baggage of debt even before they board the first plane that will take them to their destination country. For some, paying an existing debt is the main reason. For others, it is the start of being in debt to pay agency fees and the expenses incurred in employment arrangements.

Taking out a loan from financial institutions or individual lenders is easy enough to accept when the OFW hopeful thinks of the possible returns in terms of higher salary and better benefits. In an ideal world, everything is supposed to work out fine. The OFW goes to another country to work and then sends the payment for loans from the first salary or in several monthly salaries depending on the amount and everything ends well.

In the real world however, there are unscrupulous employers who will change the nature of the job and the amount of the salary agreed upon. There will be unexpected fees that have to be paid for work to begin. There will be unpaid salaries.

Provision of Material Things to Compensate for Absence

This particular phenomenon where OFWs provide their family in the Philippines all the luxury their salary can buy while they try to make do with the meager “left-over’ sum is not rare. In fact, it is so prevalent that OFWs are constantly being reminded to be careful from being trapped in this particular mindset. This phenomenon is said to arise from the feeling of guilt associated with trying to compensate for being away.

There is also a tendency for many OFWs to “spend to the max” whenever they go home. Aside from the many imported goodies they bring, every homecoming may be marked with celebrations like family eat-outs and travels. There is nothing bad about all these since most OFWs are working hard to give their family a good life. The problem lies on overdoing it to the point of compromising sound financial practice in relation to ensuring that the family will still have a good life when the time comes for the OFW to come home permanently.

Too Much Investment and Wrong Investments

OFWs are natural magnets for all kinds of investmentoffers. The reason is obvious. They appear to have the capability to invest because of the monthly pay they get.

Granting that this is true, not every investment offer will be a wise move. There will be many offers for real estate properties, financial schemes, and all sorts of luxury items. Too much investment activities going on at the same time tend to fog the financial direction of a person. Wrong investments usually arise from investing without studying the proposition thoroughly. OFWs need to stand up to the pressure and learn to say no when necessary.

My Say

The greatest heartbreak for any OFW who has toiled in a foreign land for his or her family is to come home worse off from the time of departure. Broken families, rebellious children, physical illness, and even death continue to mar the plight of an OFW. In spite of all these however, Filipinos continue to troop to placement agencies and try their luck because we have to admit that there are OFW success stories happening as we speak.

OFWs will do good to cover the basics first. Pay off debts. Set aside savings. Purchase and invest according to what is applicable. That is essentially how it should work.

OFW success stories are made. They will never be told unless  OFWs wisen up to the financial challenges being presented to them. Knowing the roots of why many OFWs act and decide as they do will help OFWs and their families understand what needs to be done to create their own success stories.