What do remittances mean for families?

A Remittance can be described as a sum of money sent by a migrant worker to his or her family back home. It is derived from the word ‘remit’ which means to send back and is the most direct and well-known link between migration and development. Every 16th of June, the International Day of Family Remittances (IDFR) is celebrated. The United Nations set out this day to recognize and encourage migrant workers who still send money back home despite economic insecurities, global pandemics, and other hardships.

In 2022 remittance flows to low-income and medium countries are likely to increase by 4.2% thereby reaching an estimated figure of USD 630 billion. As of 2021, there was an 8.6% growth, and this was largely contributed by the payments of migrant workers to their families back home. Based on World bank data, most families in these countries receive an average of $200-$300 every month in remittances. Not only are these payments beneficial to families, but they are also developing the country’s economy.

For families, remittances have been proven highly beneficial, as it helps increase their income and standard of living. Some other benefits of remittances to families are;

  • It has helped reduce the effect of Inflation: Inflation leads to a hike in the prices of goods and services, which leaves individuals struggling to pay for their basic needs and necessities. Remittances provide more income to these families and help reduce their struggle by providing more income.
  • It has helped provide more assets to migrant workers and families: Remittances have also provided migrants with the opportunity to invest and purchase assets in their home countries with the help of their families and loved ones. It has also provided an avenue for savings and other financial decisions.
  • Families can afford basic necessities and better quality services: With more sources of income, families can afford basic necessities like shelter, food, and clothing. They can also pay for education and good health services.
  • It protects the family against economic crisis and other financial insecurities: Remittances can protect families from economic and financial crisis to an extent, this is because most economic insecurities affect the country’s currency and prices of goods and services, so receiving income in a higher currency will help guard families against situations arising.

Remittances have not only helped families but have also helped migrant workers invest in their home countries and contribute to the growth of their loved ones and society as a whole. Thanks to technology remittances can be done easily and within a short period of time from the comfort of your home.

With a platform like ATL money transfer, you can now make payments without hassles and also at a low fee. ATL money transfer is a platform dedicated to providing you with a quick and seamless experience. We are based in London, United Kingdom, and our mission is to make money transfer transparent and secure for everyone; we provide financial inclusion to millions of people with great exchange rates and low fees.

How can I send a remittance using your platform?

To make a payment using our site, simply follow the steps below;

  • Visit the website or download the ATL money transfer app
  • Enter the amount you wish to transfer
  • Fill in the details of the recipient
  • You will then be directed to the payment section, after which your transaction is complete.

All transactions made on our platform are 100% secure and we are registered as a Money service business,  regulated by the Financial Conduct Authority (FCA). To learn more you can visit our site.

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