11 Financial Planning Basics for OFW Parents

If you're an overseas Filipino worker (OFW), you're already doing one of the biggest acts of love—sending money home. But here’s something just as important: financial planning.

Studies show that many overseas workers end up with little to no savings to rely on. Researchers from Ateneo de Davao report OFWs tend to funnel most of their income into remittances with very little left for actual savings or financial goals. That also means most of what you send gets used up quickly, leaving little to grow or protect your family’s future.

Financial planning helps you go from scraping by to gradually building a solid future for yourself and your loved ones. Here are a few basic steps to manage money better.

1. Know Where Your Remittance Is Going

Filipino culture often ties money to love, sacrifice, and trust. When you question where the remittance goes, it can easily be misunderstood as "kulang sa tiwala" (lack of trust).

But good financial planning always starts with transparency. Every member of the household needs to understand the budget they’re working with. And to create a budget, you need to know where your money is going.

Your next step: Share an Excel file or Google Sheets with your spouse or the designated money manager where they can log expenses. This shared system helps you both understand spending patterns.

2. Set Financial Goals as a Family

If you feel that your family thinks creating a budget means you're controlling every cent, then they may not understand that you're working for something bigger. That “something"—aka financial goal—should be clear to everyone.

Ask yourself and your family:

• Are we saving for a house?
• Is the priority education?
• Do we want a small business back home someday?
• Or is retirement the goal?

Your next step: Once the financial goals are clear, you can work backward and assign timelines and budgets to each. Write these goals down, post them on the fridge or save them on your phone’s notes app. Having a visible reminder helps everyone stay on the same page and stay motivated.

3. Create Your Financial “Map”

This document answers the question of how to achieve your financial goals. Just remember that as your earnings grow or expenses change, your financial plan should adjust, too. Here's how to make a financial plan with a notebook or spreadsheet.

• List the target amount of your goal, how many months to save, and how much to save per month.  
• Next, put your income sources and expenses, from your basic needs to the remittance you send home. Don't forget to include loan payments or credit card debt in your costs. 
• Deduct all expenses from your net income. The result shows how much you can save after covering all your essential expenses.

Did you end up with a negative result? Check items no. 4 to 7 for possible options. If you have money left, no matter how little, congratulations because you have savings! You can skip to no. 7.

4. Adjust When the Numbers Don’t Add Up

If you don’t plan your finances, years of hard work might just lead to money troubles later on, especially when it's time to head back home.

Take a good look at your spending habits and those of your family. It’s not just about slashing expenses; it might also mean changing the way you think about saving.

This study in Human Behavior, Development and Society shows that many OFWs may view saving money as a form of loss. Because spending feels rewarding, saving is often seen as giving something up.

Long-term financial goals require patience and discipline, qualities that don’t always come easy with family expectations or the urge to reward yourself after months of hard work. That’s why being intentional with your spending is so important.

Your next step: Review your last three months of expenses and sort them into “needs,” “wants,” and “can wait.” Then, commit to cutting back or delaying at least two non-essential items. Redirect that freed-up money straight into your savings because every peso counts!

5. Send Remittances With a Purpose

There's nothing wrong with being generous during birthdays, holidays, and even school reunions. But if you're constantly giving in to emotional spending just because you feel guilty or don't want to look bad, it can mess with your long-term goals.

Your next step: Create a remittance schedule with a fixed monthly amount that covers basic needs, some allowance for emergencies, and a small “extra” for celebrations. If someone asks for more outside of that, ask: “Is this something we planned for?” If not, consider delaying or adjusting future expenses to accommodate it.

6. Pay Off Debts

Money-saving tips don't matter without a plan to clear debts, which eat into the money you could be saving or investing. Debt can keep you stuck in a cycle that delays your goals year after year.

Your next step: List your debts with amounts, interest rates, and due dates. Focus on the debt with the highest interest rate first, allocating extra money toward it while making minimum payments on the others. Once it’s paid off, move to the next one. It will take time, but watching your debt shrink month by month is a rewarding experience.

7. Find Another Income Stream

Depending only on your monthly paycheck can hold you back from reaching bigger financial goals. Many OFWs boost their income by starting small family businesses back home, such as getting into ride-hailing or food delivery services with a trusted relative in charge.

Your next step: Test the waters with little cost by turning on your phone camera! Share your life abroad when you explore your host country or go shopping for ingredients for your Pinoy dish. With time and effort, that content can lead to ad revenue, sponsorships, or even small online businesses when you've built a following.

8. Build an Emergency Fund

Don't let financial planning get off track by not having a financial buffer to cover a medical emergency or global crisis (hello, pandemic!). This emergency fund is your financial seatbelt. You hope you won’t need it, but you’ll be glad it’s there.

Your next step: Aim for one month’s worth of expenses, then slowly grow it to cover three to six months. Keep it in a separate account that's easy to access but not easily accessible for impulse buys.

9. Put Your Money to Work

That's the idea behind passive income: earnings that come in regularly with little effort once set up. It won’t replace your salary overnight, but it can give you an extra layer of financial security. For example, buying a small piece of land or property to rent out—even if it’s just one apartment or a boarding room—can generate a steady monthly income.

Your next step: You can explore other investing opportunities but with caution.

• Reach out to a trusted bank, which will typically offer products such as bonds, mutual funds, and unit investment trust funds (UITFs). These pool money from multiple investors and grow it over time.
• Note that even good investments for beginners typically yield returns after years, not months. Those returns also depend on how well the economy is doing, so there's a risk of losing money.
• Understand what you're investing in, avoid “get-rich-quick” scams, and only invest money you won’t need in the next three to five years.

10. Don’t Forget About Yourself

Managing your remittances wisely protects your family’s future and your own. 

Paying yourself first sounds so simple. But when you're the primary breadwinner, it's always the first to go when you know the budget will fall short. Financial planning is all about looking out for your health, your retirement, and even your dream of coming back home to your family for good.

Your next step: Start small and stay consistent. You can choose one or several from these options, depending on your financial situation.

• If possible, automatically transfer 5–10% of your income to a personal savings account.
• Try a digital bank with higher interest rates and no minimum balance requirement. Keep this account separate from your remittance account!
• If saving isn’t yet possible every month, prioritize your SSS contributions at least. It’s a steady way to ensure you’re covered with a basic pension later on.
• Consider getting an insurance plan that includes critical illness coverage so a medical crisis won’t wipe out everything you've worked for.

11. Talk to Your Kids About Money

If you have young kids, talk to them about why you’re working abroad and how the money is used. Teaching your kids about money—saving, budgeting, and spending wisely—is one of the best investments you can make.

Your next step: If they’re old enough, involve them in small savings projects like opening a bank account or planning a family goal. This helps them appreciate your hard work and makes them better money managers as they grow older.

With a bit of financial planning, your hard-earned money can do more than survive the now—it can protect your family’s future and your own. So take charge. Set clear financial goals, save and invest wisely, and don’t be afraid to talk about money. You’ve already made the sacrifice of being away. Let that sacrifice count for something that lasts.

How are your savings efforts coming along? Share your tipid tips on ParenTeam Moms and Dads Facebook group!