MOA for OFWs’ financial literacy signed
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Mon, 18 Feb 2019 16:17:08 +0000
A financial literacy program meant to teach overseas Filipino workers (OFWs) and their families how to manage their hard-earned money was forged on Monday.
The memorandum of agreement on “Pinansyal na Talino at Kaalaman or PiTaKa” was signed by the Bangko Sentral ng Pilipinas (BSP), Overseas Workers Welfare Administration (OWWA), and BDO Foundation in a ceremony held at the BSP Complex in Manila.
The program aims to equip OFWs with the ability to better manage their remittances, get out of debt, set aside savings or make prudent investments, in preparation for a better life when they return home to the Philippines. The program also targets OFW families to sensitize them of the temporary nature of overseas employment, and encourage them to support their loved-ones by spending wisely, saving regularly and looking for ways to augment their family income.
The program includes three entertaining videos with embedded financial literacy lessons and messages, which will be used as tools in the financial literacy sessions to be incorporated in pre-departure orientation seminars (PDOS) and post-arrival orientation seminars (PAOS) that all OFWs are required to attend.
It will also be used during general orientation for OFW families. Session guides/training kits will be developed, and a training of trainers will be conducted for OWWA trainers and OWWA-accredited PDOS/PAOS providers to ensure sustained and effective delivery of financial literacy lessons.
BSP Governor Nestor Espenilla Jr., in a speech read by BSP deputy governor Chuchi Fonacier, said some OFWs continued to face financial struggles despite being hailed as the country’s modern-day heroes because of their remittances that account for 10 percent of the Philippine gross domestic product.
Espenilla added that the latest consumer expectations survey showed that only 35.5 percent of 470 OFW households polled in the fourth quarter of 2018 used remittances for savings. Meanwhile, only 5.1 percent of these households allotted part of their remittances for investments. The survey also revealed that 98.5 percent of the OFW households used the remittances received to purchase food and other needs.
For his part, OWWA Administrator Hans Leo Cacdac said the “PiTaKa” campaign would complement the existing and current financial literacy initiatives, both of the government and private sector, by reinforcing a more “reachable,” “likeable” and “shareable” campaign.
On the other hand, BDO Foundation President Mario Deriquito said the foundation is expanding the scope of its financial inclusion advocacy through a corporate citizenship initiative that benefits millions of migrant workers and their families in the Philippines.
Last year, money sent home by OFWs hit a record high $32.21 billion, up 3.0 percent from 2017’s $31.29 billion.
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