How to deal with Financial Expectations and other Money Issues for Balikbayans
Dealing with different Money Perspectives (Pesos Series #1)
The first time I travelled back to the Philippines, I didn’t announce my arrival. Yes, I wanted to see relatives and friends but I just didn’t have the budget for it then. Today, I have a better understanding of the different perspectives of Filipinos based abroad and those who stayed at home. It is all about the money conversion trap. In this series we will talk about:
different money perspectives and how Balikbayans (Filipinos returning or visiting home) can prepare to lessen financial stress
challenges in opening a peso account and why banks need to you fill out forms that includes revealing your Social Security Number (SSN)
IDs and other Philippine bank requirements for opening accounts
paperwork required to inherit bank balances of your departed loved ones in the Philippines
maintaining Philippine bank accounts while abroad
Subscribe for free so you will not miss any of the coming posts. Now let’s go back to the money conversion mindset and how to deal with it.
When I first arrived in the USA, I was constantly converting dollars into pesos. It broke my heart to find out how much groceries and a bus ride cost compared to Philippine prices. Later on, I learned to think in dollars and it freed my mind. When I went to the Philippines in 2022, I can’t help but convert peso prices into dollars and appreciate how much less I am paying for food and services. However, I was not the only one converting dollars into pesos.
Money Conversion Trap
Many Filipinos think that people who came from abroad have money to spare. They unwittingly convert dollars into pesos and see money multiply. That is not true. Every OFW (Overseas Filipino Worker) will tell you how hard and lonely it is to earn from afar and some barely have money to spare after sending remittances to the Philippines. It gets worse. For instance, a nurse told me that a villager in her hometown woke her up early in the morning. She barely knew this person yet he assumed that she can spare money for an emergency. Again and again, I hear of similar stories where relatives of Filipinos working abroad contact them if they have a medical bill, their utilities will be cut off or their kids need tuition money. Thankfully, not everyone think this way.
Pleasant Experiences
I treated one of my cousins with her first plane ride to Mindanao. For me, the plane fare and other expenses were relatively cheap as I convert it to dollars. Imagine my surprise when she treated me with a special home-cooked dinner and other gifts! Moreover, we reignited our long-lost relationship. My high school barkada, on the other hand, didn’t let me pay for anything during our overnight reunion. We roamed Venice Grand Canal Mall, ate dinner in a members-only restaurant, and had a pleasant midnight stroll at Bonifacio Global City (BGC). I was getting ready to pay for our breakfast meal but one of them stopped me. Again and again, I was on the receiving end during that 2022 visit. But there were others who expect something else.
Consequence of Social Media
I posted a picture of me and my friends at BGC in Facebook. Shortly, a cousin contacted me and asked for money. My aunt told me not to give any for he might squander it. Well, I gave that cousin the benefit of doubt and found out he needed cash to find work in Metro Manila. I met with him and tried to give him job pointers. He barely listened and acted as if he needed to go right away. From that instance, I knew I made a mistake. Whatever I say will not make a difference on what he will do next.
Give to Empower
It is great to share your financial blessings. However, there are times when the receiver becomes dependent to others. I should have listened to my aunt. She knew the spending patterns of that particular cousin. Actually, she warned me about him. Sometimes it is better to encourage people and give them ideas on how to earn a living. Elisha didn’t give money to the widow with great debt. He asked what she has and instructed her what to do with it (II Kings 4:1-7). But like the widow, the person you are encouraging must listen and act to expect multiplication. My cousin barely listened.
Set Aside to Give
Unlike my first trip to the Philippines, my next trips have less financial stress. I accepted that many think people from abroad have money to spare even though it is not always true. My solution is to open a separate online bank account and put a little bit of money in it every time I earn something. I call it my giving account. I decided in advance to put 5% (sometimes more) of my income there. It might seem little at the start but it accumulates to something significant later. When a relative from the Philippines ask for help, I just get some there. If nothing is left, I can honestly tell them I have no budget at that time. I do not say anything else. Why? I learned that many Filipinos covert dollars into pesos and see extra money. I cannot change the way they think. My high school friends think differently on their own merit. My other cousins, give what they can. I cannot change their money perspective. It is better to decide, in advance, how much to give. So far, my giving fund gave peace of mind to me and whoever I need to give to. My next post will be about the challenges I experienced when I tried to open Philippine Peso accounts. Subscribe for free so you’ll not miss a post.