Saving · Module 6 of 9
Money sent home
The hidden costs of sending money abroad, and how to get more of it to the people who need it.
Key terms in Money sent home
- Remittance
A remittance is money that a migrant worker sends to family or a community in another country, usually the country they came from. These personal transfers are a major source of income for many households and economies, in some cases larger than foreign aid. The share lost to fees and exchange-rate margins is closely tracked by international development bodies.
Source: World Bank, Remittance reality: Getting to 3% and beyond
- Remittance transfer
A remittance transfer, also called an international money transfer, is an electronic transfer of money to a person in another country through a provider covered by U.S. consumer rules. Providers must disclose the cost and exchange rate before payment. Funds can reach the recipient in a different amount than was sent, because of fees, taxes and currency conversion along the way.
- Transfer fee
A transfer fee is a charge a sending company applies for processing an international money transfer. It is one of several possible costs, alongside transfer taxes, the exchange rate applied to the currency conversion, and fees that a recipient’s bank may deduct. Because these costs come from different parties, the total reduction in the amount received can exceed the headline fee.
Every term on Lever is in the money glossary.
About this module
Money sent home is part of Saving, one of 15 subjects in Lever. It’s a short run of 6 lessons, about 15 minutes in all, so you can finish it in one sitting.
Every lesson takes one idea at a time. You read it with the math worked out step by step, answer a question that puts it to use, then see why the right answer is right and why the others aren’t.
It’s for anyone who was never taught this, and you don’t need to know anything first. Every lesson is free. Lever works out what you already know, so you can start here or let your path bring you to it.
More in Saving
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1
The fund that catches you
Build a small emergency fund first, know what really counts as an emergency, and refill it after you use it.
5 lessons -
2
Money with a name on it
Give your savings a job, plan for more than one goal at a time, and work backward from a date to a monthly amount.
9 lessons -
3
So it doesn't depend on a good month
Keep saving even when your income goes up and down, with an honest average and a plan that runs on its own.
5 lessons -
4
Three ways to divide a month
Three popular ways to budget, including 50/30/20 and envelopes, and how to pick the one you’ll actually stick with.
6 lessons -
5
Running a tanda
How savings circles like tandas work, what your turn in line is worth, and what to check before you join one.
8 lessons -
7
The money that shows up all at once
Make the most of a bonus or refund: decide what it’s for before it arrives, and when paying off debt is the better move.
5 lessons -
8
When your own money buys less each month
Why money that just sits loses value when prices rise, and the one comparison your bank’s ads never show you.
5 lessons -
9
What the app does with your spare change
How round-up saving apps really work, who is holding your money, and the fee that can wipe out what you saved.
5 lessons
Try this module
It’s part of Saving. Lever will bring it to you when you’re ready, or you can go straight there.