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Remittances

Definition

Remittances are funds transferred from migrants to their home country. They are a significant part of the economy in many countries where a large number of its citizens have gone abroad to work.

Analogy

Think of remittances like birthday money you send to your younger sibling while you're away at college. You've moved for better opportunities, but you still want to support and help out back home.

Related terms

Migration: This is the movement by people from one place to another with intentions of settling temporarily or permanently in the new location.

Economic Development: This refers to efforts that seek to improve the economic well-being and quality of life for a community by creating and/or retaining jobs and supporting or growing incomes and the tax base.

Globalization: This is a process of interaction and integration among people, companies, and governments worldwide, which has been accelerated by advances in technology.