When people with low or middle incomes send money back to their home country, it helps the economies of many places a lot. Here are 10 reasons why remittances are important:
Sending money back to a family helps them get out of poverty by giving them extra cash to spend.
Family budgets stay stable because these funds pay for things like food, clothes, and utilities, making sure that basic needs are met.
When you send money back to a friend or family member, it's often enough to cover their school costs. The person who gets this can go to school or college, which will help them get a better job one day.
Families can get health care, buy health insurance, or pay for emergency medical care that they might not be able to afford without the money transfers.
In the home country, some of the money sent back is used to start or grow small businesses. This makes people want to start their own businesses and creates jobs.
When people send money back to their families, they often build or fix up homes. This makes living conditions better and drives up the value of the homes they buy.
Adding money to the economies of the countries that receive remittances helps keep those economies safe, especially when the economies are bad.
Sending money right away during natural disasters or economic crises can save the lives of families back home.
When people use legal ways to send and receive money, they become part of the financial system. This can help them save money and get credit.