Remittances and the financial capabilities of migrant households in the Philippines

This exploratory mixed methods study sought to determine the financial capabilities of remittance-receiving households from two rural municipalities in the Philippines: San Nicolas in Ilocos Norte province and Moncada in Tarlac province. The broader concept of financial capabilities not only looks at people’s financial literacy but also their financial inclusion (access to financial products) and financial functionings (actions on finance). Quantitative household surveys and qualitative data gathering methods that fall under a rapid qualitative inquiry (RQI) design were employed. Results and findings show that more remittance-receiving households from San Nicolas saved, invested, and did business in their hometown compared to counterpart migrant household respondents from Moncada. Differences in migrant households’ levels of financial literacy, as well as the geographic make-up and economic activities of the two municipalities, may help explain why one municipality had more migrant investors, savers, and entrepreneurs over the other.