How Migrants Use Money Transfer To Support Family Back Home

Migrants send back more than three times the amount of money provided through global foreign aid. Reducing transaction costs can make these contributions even more effective in fighting poverty. With the support of financial institutions, Money Transfer has become a reliable tool for sustaining families and strengthening communities across the world.

Every year, countless workers abroad send thousands of euros to help their parents maintain homes or cover daily expenses. During the pandemic, many also supported siblings or relatives with extra funds to cover school costs, rent, and essentials. These actions show how important Money Transfer is during both stable and difficult times.

Today, around 200 million migrants regularly send financial help home to their families. These transfers reach nearly 800 million people worldwide, which is more than the combined populations of several major global regions. To put this into perspective, imagine a classroom of 30 students where at least three rely on money received from relatives abroad.

These payments have quietly become a major source of stability. Families often use this money to pay for education, repair homes, or cover medical bills. For many, Money Transfer means the difference between progress and financial struggle.

Reports show that money sent home by migrants makes up about two-thirds of what is recorded as global remittances. The remaining portion comes from seasonal jobs, short-term work abroad, and employment with organizations outside the home country.

To keep things simple, we can think of remittances as money either sent back or brought back by migrants. Money sent back means personal transfers to loved ones, while money brought back refers to wages earned abroad. Understanding this highlights the critical role of Money Transfer in improving lives and supporting entire communities.

The Global Impact of Migrant Money Transfers

Migrant workers send back more than just money; through each money transfer, they reshape economies worldwide. These transfers surpass foreign aid, reduce inequality, and provide lifelines for millions in developing nations. By looking at where the money flows and how it fuels economies, we see its vital role in global progress and stability.

Migrants Send Home More Money Than Global Aid

Migrants send and bring back far more money than the total amount of global foreign aid. The scale of these transfers is massive and often overlooked. To understand just how big it is, it helps to compare it with international aid.

Foreign aid is money provided from one country to another, usually aimed at helping people in lower-income nations. Many view it as one of the largest tools for redistributing resources across borders. It has long been seen as an essential way to support development and provide relief during crises.

Yet, the money that migrants send or bring back to their home countries is far greater. In 2021, these flows were more than three times larger than the entire amount of foreign aid worldwide. Despite their importance, these transfers rarely get as much attention as government-funded programs.

The difference shows how Money Transfer plays a much bigger role in shaping lives than many realize. These funds go directly into households, helping with school costs, home repairs, and daily living expenses. For many families, this support makes the difference between getting by and moving forward.

Most Migrant Transfers Flow From Wealthy Nations to Developing Countries

Most of the money sent or brought back by migrants flows from wealthier countries to those with lower incomes. While foreign aid is created to reach low and middle-income nations, migrant transfers follow a similar pattern, directly helping families where support is most needed.

If these transfers only moved between wealthy countries, the effect on reducing inequality would be very limited. But that is not what happens. Migrants working in developed nations send a large part of their earnings back to relatives living in less advantaged regions.

Reports show that high-income countries send out around $680 billion while receiving only about $195 billion. This means wealthier nations provide nearly 87% of the funds while receiving just 25% in return. In short, resources from strong economies are being redirected abroad, making a real difference in global communities.

This redistribution has a powerful effect. Families in lower-income countries often depend on these funds to pay for education, healthcare, and daily needs. Money Transfer is not just a transaction, it is a lifeline that helps reduce inequality and creates opportunities for progress.

Small Amounts Create Big Impact in Developing Nations

Money sent or brought back by migrants makes a huge difference in the economies of recipient countries. Even small amounts, when transferred from wealthier nations, stretch much further in poorer regions and provide meaningful support.

Studies show that migrant workers send back around 15 percent of their earnings on average. While that may seem small, the impact is significant. For example, 15 percent of the average annual income in a high-income country equals nearly twice the annual income in Colombia. This demonstrates how powerful Money Transfer can be for families in lower-income nations.

In many countries, remittances represent a big share of the overall economy. More than thirty nations receive transfers that equal over 10 percent of their total gross domestic product. This shows just how important these funds are for supporting national growth and household stability.

Central American countries highlight this impact clearly. In nations where many people have migrated abroad, the money they send back makes up a major part of the economy. In Nicaragua, El Salvador, and Honduras, transfers account for 20 to 30 percent of GDP. These flows demonstrate the essential role of Money Transfer in sustaining entire communities.

How Money Sent Back Improves Daily Life Around the World

What happens when families in lower-income countries receive financial support from relatives abroad? The results are life changing and long lasting. Even small amounts of money can dramatically improve living conditions and create opportunities for growth.

In many poorer nations, an extra $100 from abroad can mean the difference between a child going hungry or being well fed. Research shows that transfers help reduce child malnutrition, giving children the chance to grow stronger and healthier. Families also use this money to cover healthcare needs. It pays for doctor visits, essential medicine, and treatments that would otherwise be unaffordable. These transfers even reduce child deaths by helping families access clean water and sanitation. For many households, this support works like a private safety net.

Money Transfer also helps children stay in school longer. When families receive financial help, they can afford tuition, supplies, and living expenses that allow children to continue their studies. For example, many students in developing countries finish secondary education because relatives abroad support them with regular transfers. In Ghana, studies show that families receiving this type of help enroll children in both primary and secondary schools at higher rates. Education funded through migrant support opens doors to better opportunities and brighter futures.

Overcoming Challenges and Maximizing Benefits of Money Transfer

While migrant transfers are powerful, challenges like high fees and unreliable services limit their full potential. Reducing costs, improving systems, and ensuring secure transfers can make a lasting difference. With better access and lower barriers, families will receive more of what their loved ones send and enjoy greater financial stability.

Note: Depending on the total you send, Order Express may need to confirm a government-issued photo ID. Verification is required when transfers reach USD 3,000 or more within any 48-hour period, and lower limits apply in some states. 

High Fees Reduce the Support Families Receive

One of the biggest challenges for people living abroad is the cost of sending money home. A large portion of their earnings never reaches their families because of transfer fees. These charges, called transaction costs, prevent loved ones from receiving the full benefit of what is sent.

Transaction costs reduce family support in two ways. First, they directly lower the amount of money that arrives. Second, research shows that when fees are high, migrants often send less overall. Many hesitate to send larger amounts, knowing a big share will be lost before it even reaches home.

For governments and financial systems, lowering fees is one of the most effective ways to help families abroad. Reducing costs would allow more money to reach households, directly improving their living conditions. Encouragingly, fees have been moving in the right direction. The median cost of sending money has dropped from 8 percent in 2011 to 6 percent in 2020.

The Goal to Reduce Fees Worldwide

The United Nations has set a clear target: bring the global average fee for transfers below 3 percent by 2030. It also calls for no single transfer route to exceed 5 percent. This goal is part of the Sustainable Development Goals aimed at improving financial inclusion worldwide.

While there has been progress, the target is still far away. In some cases, sending $100 can cost as much as $10, which is more than double the UN’s recommended maximum. Even the current global average of 6 percent remains twice as high as the goal. High fees continue to block families from receiving the full benefit of migrant support.

There are clear steps that governments can take to make sending money cheaper. First, they can require service providers to clearly display all fees and exchange rates. Transparency allows migrants to compare options and choose the most affordable service. This competition can push providers to lower prices and give families a larger share of the money sent home.

Shared Payment Networks Can Lower Costs

Another effective way to reduce fees is by creating shared payment networks that link banking systems across countries. When central banks establish these direct connections, the cost of sending money becomes much lower compared to traditional transfer methods.

One example is when two neighboring countries connected their payment systems, making transfers faster, cheaper, and more transparent. This model proves that cooperation between nations can ease financial barriers and help families receive more of the money sent home.

If expanded to more regions, these networks could save migrants a significant amount over time. Families would be able to benefit more from each Money Transfer, improving household stability and creating new opportunities.

Cost Comparison Tools Can Empower Migrants

A third step governments can take is launching official remittance cost comparison websites. These tools allow people to see fees and exchange rates clearly across providers, helping them choose the most affordable option. By making prices transparent, competition increases, which drives down costs and ensures families get more of what is sent home.

Experts estimate that reaching the UN’s fee reduction targets would free up billions of dollars each year. That extra money could help millions of families pay for education, healthcare, and basic needs in countries where every dollar makes a difference. Lower costs mean higher impact, and the benefits extend directly to households and communities.

The impact of migration is not only seen through Money Transfer. As more migrants move to high-income countries, their earnings create a ripple effect. Even the lowest earners in wealthier nations often make more than top earners in many developing countries. This difference shows how migration itself redistributes income globally, opening doors for better living standards across borders.

Note: Every Order Express transfer comes with two written disclosures, one before payment and one on your receipt, listing the amount sent, all fees, the exchange rate, and the amount the recipient will receive. You have 30 minutes to cancel a transfer for a full refund and 180 days to report an error. To start a cancellation or error claim, call 888-666-1602 or email customer.service@orderexpress.com.  You may also write to Customer Service, 685 W. Ohio St., Chicago IL 60654.

Why Secure and Reliable Transfers Matter

When migrants send money to their families, trust is everything. Families depend on these funds to pay for food, school fees, or urgent healthcare, so delays or hidden charges can cause serious stress. A secure and reliable Money Transfer service ensures that every payment arrives on time and in full. 

It also protects senders from fraud and gives families confidence that the money will reach them without problems. Transparency is another key factor. Clear information about fees and exchange rates allows migrants to make smart choices and avoid unnecessary losses. Reliable transfers are not just about speed; they are about safeguarding hard-earned income. 

Families receiving money often plan their monthly budgets around these funds, which means even small disruptions can have big consequences. For migrants, knowing their money is safe provides peace of mind. For families, it means stability and the ability to plan ahead. Secure transfers turn earnings abroad into a steady lifeline for loved ones back home.

Seasonal and Emergency Support Through Transfers

Money Transfer is not only a regular flow of support; it is also a critical tool during specific times of need. Many families rely on extra funds during school enrollment seasons, when tuition and supplies become due. Migrants often increase their transfers during these periods to make sure children continue their education without interruption. 

Beyond seasonal expenses, emergencies also highlight the importance of these funds. When natural disasters strike, when medical emergencies arise, or when unexpected hardships occur, families look to their loved ones abroad for urgent help. Migrants respond quickly by sending additional money to cover hospital bills, food supplies, or temporary shelter. Unlike foreign aid programs that may take months to arrive, personal transfers are immediate and direct. 

This speed makes them one of the most effective safety nets for vulnerable households. Seasonal support helps families prepare for planned costs, while emergency transfers provide a vital cushion in unpredictable situations. Together, they show how flexible and life-saving migrant support can be.

The Human Side of Money Transfer

Behind every transfer is a story of care, sacrifice, and connection. For migrants, sending money is more than just sharing financial support, it is a way to stay close to loved ones across great distances. Each transfer represents hours of hard work abroad and a choice to prioritize family needs over personal comfort. 

For families receiving money, the impact goes beyond bills and expenses. It brings peace of mind, knowing someone is always thinking about them. A father abroad might send money to ensure his child has a proper education. A daughter working overseas may send funds so her parents can repair their home. These transfers keep emotional bonds strong, bridging gaps that geography creates. 

They also bring dignity, as families can pay for essentials with their own decision-making power instead of relying on charity. The human side of Money Transfer shows us that it is not just about numbers, it is about love, resilience, and the hope for a better future.

How Affordable Transfers Can Reduce Global Inequality

High fees limit how much support reaches families, while affordable Money Transfer services maximize the benefits of every dollar sent. Lowering costs allows migrants to send more, which directly helps families cover basic needs like food, healthcare, and education. But the impact goes far beyond individual households. 

When more money reaches developing nations, entire communities benefit. Local businesses grow because families can spend more on goods and services, which creates jobs and boosts local economies. Affordable transfers also reduce financial inequality by giving poorer nations access to a steady flow of income from abroad. These funds are not loans or aid with conditions, they are personal earnings that go straight to households. 

Reducing fees is one of the fastest ways to close the gap between wealthy and low-income nations. Each saved dollar represents more opportunities for growth, less poverty, and stronger communities. Affordable transfers don’t just support families; they play a key role in building a more balanced and equal global economy.

Conclusion

Money Transfer is more than a financial exchange; it is a powerful lifeline that sustains millions of families across the world. From covering education and healthcare to supporting entire communities, these funds provide real opportunities for growth. Yet, high fees and unreliable systems often limit how much families actually receive. 

That is why choosing a trusted service matters. Order Express offers secure, affordable, and transparent transfer services that help families keep more of what is sent. By lowering costs and ensuring reliability, families can enjoy more of what their loved ones send. To make the most of every transfer, choose Order Express for a secure, fast, and affordable service your family can rely on.

Note: Order Express protects personal data under its Privacy Policy, which explains how customer information is collected, used, and safeguarded.

FAQs

Why do migrants send money back home?

Migrants send money to support families with food, education, housing, healthcare, and emergencies, making it a key source of household stability.

How do money transfers help local economies?

Transfers provide families with spending power that supports small businesses, creates jobs, and strengthens community growth in developing regions.

What challenges do migrants face when sending money?

Migrants often deal with high transaction fees, exchange rate losses, limited banking access, and delays in transfers.

Why are lower transfer fees important?

Lower fees mean more money reaches families, helping them cover essential needs while reducing poverty and inequality.

How do transfers improve children’s futures?

Money sent home allows children to attend school, access better nutrition, and grow up with more opportunities for success.