Mother's Day: tips to make the most of the remittances received

Updated on 05/06/2022 07:28 pm

The Mother’s Day It is a day considered important by banks because the Peruvian population abroad traditionally sends more money to their mothers, especially if they are in the States. Thanks to these dates, it was possible to reach 67 million dollars in the second quarter of 2021, according to the Central Reserve Bank of Peru. Apart from economic support, it serves as a gift for the mother.

According to the World Bank, remittances will rise by 4.44% in Latin America, noting that in the first quarter Mother’s Day is the only holiday that drives so much money mobility. It makes sense, since love and duty to the family is a fundamental characteristic that Latin American cultures share with each other. Apart from sending more remittances around these dates, the average amount sent also increases.

LOOK: Follow these tips to send remittances safely

economic education

Therefore, it is necessary for mothers to be aware of their money. Mauricio García, regional vice president for Latin America at Western Union, advises how to correctly manage remittances:

Reserve a percentage for emergencies. Garcia advises saving 10% of remittances, as saving leads to economic growth. This reserve will serve to cover emergencies, buy future goods, or serve as backup in the months when remittances do not arrive.
Expand an existing business. If the needs have been covered and there is still a significant reserve left over, it is a very good option to invest in a profitable project in the short or medium term. It is best to make the decision that gives the highest income to cover all possible costs.
Open a high-yield savings account. If you constantly receive remittances, you can access a range of banking services, such as a high-yield savings account. “It is a type of savings account that pays more interest than the national average, that is, more than a standard or classic savings account. Achieving an effective annual rate of return (TREA) greater than 3% is an excellent opportunity”he explained.
Start a business. According to the National Institute of Statistics and Informatics (INEI), more than 235,000 companies have been created in Peru since the start of the pandemic. García suggests that with money from abroad one would have the necessary income to invest in some desired project or strengthen an existing business.