Family Remittances are worth celebrating! Today, on the International Day of Family Remittances let’s take a moment to reflect on just how important family remittances are. We at SaverAfrica thought an important way to do that was to also share some information to help you and your family understand different ways to send money.
Around the world there are 281 million migrant workers and for every person that sends money, 4 more people (their household) benefit. This means that over 1 billion people are benefiting from family remittances. Remittances are a big deal. Last year, remittances were responsible for moving a total of nearly $647 billion USD. Of this huge amount of money it is estimated that 75% was spent by the receiving families on immediate needs like groceries, rent and health expenses (Data provided by FamilyRemittances.org, check out the link for more information).
This International Day of Family Remittances, millions of migrants will be working abroad to improve their families’ livelihoods. Migrants share one thing in common – they are striving to improve their lives and their families. SaverAfricawants to help you do exactly that.
When sending money overseas, you will be thinking about an option that is cheap, easy and secure. SaverAfrica provides you with a simple way to compare the costs of sending money to your loved ones at home.
To help with this we will be launching SaverLearning, an innovative financial literacy app designed for migrants and their families. With SaverLearning, you can enhance your financial knowledge, gain valuable insights into budgeting, and conveniently send money back home with the powerful Compare Rate tool. This user-friendly app provides a comprehensive learning experience, empowering migrants to navigate the complex world of finance confidently. Explore interactive modules that cover a wide range of financial topics, from understanding credit to effective money management strategies. Seamlessly track your expenses, set budgets, and receive personalised tips to make informed financial decisions. Moreover, with the Compare Rate tool, you can easily find the best exchange rates and securely send money to your loved ones back in your home country. SaverLearning is your ultimate companion for financial empowerment and seamless cross-border transactions, making your journey towards financial stability and supporting your family a smooth one.
There are several different ways of sending money that we will discuss below. Finding a new way to send money home can make your transfer even cheaper or faster.
Money Transfer Operators
Mobile wallets are sometimes used to send money to other mobile wallets but can also be an easy way to receive money from money transfer operators. Many transfer operators will have a partnership with a mobile network operator in the country where you are sending money. Mobile wallets can receive both cash and digital money, which can be loaded on to an app or cashed out via a mobile money agent or an ATM. They are usually very cheap because they do not charge you to open or maintain an account. Mobile money can also be sent to other people in your home country via the app. The process is very secure because it is linked to your mobile phone number and security codes protect all transactions that take place. All you need to do is download the app, register an account and you are ready to send money instantly!
Several Money Transfer Operator examples: MoneyGram, Western Union, Ria, WorldRemit, small world.
Mobile Wallets
Mobile wallets are most often used to send money to other mobile wallets but can also be an easy way to receive money from money transfer operators. Many transfer operators will have a partnership with a mobile network operator in the country where you are sending money. Mobile wallets can receive both cash and digital money, which can be loaded on to an app or cashed out via a mobile money agent or an ATM. They are usually very cheap because they do not charge you to open or maintain an account. Mobile money can also be sent to other people in your home country via the app. The process is very secure because it is linked to your mobile phone number and security codes protect all transactions that take place. All you need to do is download the app, register an account and you are ready to send money instantly!
Bank transfers
Bank transfers allow you to send from one bank account to another, they are a good option if you have a bank account registered in your host country and your loved ones also have a bank account in your home country. Although it may cost money to open or maintain an account, they offer a secure service that can usually be done easily online or via an app. It is a good idea to check out the exchange rates banks offer, because they can differ from other ways of sending.
Banks: Depends on the country you are sending to and from.
Cash transfers
There are two main ways to get cash to friends and family at home, you may use a service (money transfer operator or bank – explained above) or you may carry physical cash home. Carrying cash home can be one of the least secure methods of transferring money home, although it can appear cheaper. While there are no fees associated with the transfer, the exchange rate of local venders will often not reflect the best price you can receive. It can be hard to know how to compare their currency exchange to the market because they do not provide this information, so you can get less money back.
We recommend comparing money transfer services to find the best way to send cash, you can do that using our SaverAfrica compare tool or trying out the compare tool in the SaverLearning App once it is available.
Hopefully, this brief summary can help guide the decisions you make to ensure future savings!
Happy sending!