A Filipino Gift-Giving Tradition: Global Remittances During the Christmas Season
by Edwin Quinabo
Hawaii Filipinos practice a unique Christmas tradition that no other ethnic group on the islands do – sharing the yuletide joy internationally to family and friends living in the Philippines in the form of cash remittances.
During the holiday season in their ancestral homeland – from September to Christmas up until the day of the Three Kings in the first week of January – these cash remittances are called aguinaldos. Aguinaldo means bonus in Spanish but in the Philippines, it means a monetary gift usually given during the Christmas season.
Sending aguinaldos to the Philippines is commonly practiced among the diaspora of millions of Filipinos living across the world, from North America and Europe to the Middle East and Asia and south of the hemisphere in Australia.
In addition to the Filipino diaspora who’ve settled permanently in another country outside of the Philippines, hundreds of thousands of overseas Filipino workers (total OFWs as of 2022 is 1.22 million) send their aguinaldos, usually by the beginning of December to give family members time for Christmas shopping.
The inflow of holiday money remittances to the Philippines is a major boost to the overall annual remittance sent all year round, which is a key pillar of the nation’s economy.
Aris Dacanay, economist for ASEAN at HSBC, said OFWs remittances have represented around 20% of the economy’s current account receipts and around 9% of gross domestic product (GDP) since 2006.
Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. said BSP’s projections, total cash remittances this year would grow by 3.07% year-on-year to $33.5 billion from $32.5 billion last year. BSP’s 2024 projection could surpass $33.5 billion next year, which could be the highest in at least six years.
The Philippines ranks fourth (behind India, Mexico and China) in World’s Top Remittance Receipts.
The U.S. posted the highest share of overall remittances in the first half of this year (accounting for about 40%), followed by Singapore, Saudi Arabia, and Japan,” the BSP added.
While each year the Philippines has been posting record-breaking total remittance receipts in real dollars, it is following a global trend of slower growth. Philippine economists say gone are the days of 10% annual increases that started to slow down even before the global pandemic.
Dacanay said, “Remittances perhaps may have lost their mojo when it comes to supporting the peso, but they haven’t when it comes to fueling consumption.”
Remittances are like Christmas money that never ends and continues all year round. They provide a stable income stream for millions—giving them the resources to buy goods, pay for children’s and college education, uplifts people from the pangs of poverty, and increase savings coffers for major purchases such as a home, car or health emergency.
Dacanay said the main driver of the slowdown was a drop in the number of Filipinos working abroad. The percentage of total households with an OFW member – who is lauded by family and the country as heroes – has been gradually decreasing, and the pandemic accelerated this trend.
He said OFWs are either returning to the Philippines for work as new opportunities are presenting themselves in certain sectors or they are immigrating to the country where they’ve been employed. With middle-income jobs burgeoning in the Philippines, he explained that some skilled workers abroad might have decided to pack their bags and take their chances back home.
Part of the lure of working abroad for OFWs is that the average OFW makes 2.5 times what their counterparts receive in pay in the Philippines.
Another explanation for the slowdown is that OFWs would rather take a pay cut to be with family. Being away for work extending through months and years is a huge sacrifice, OFWs and their families say, especially during the Christmas season.
For many Hawaii Filipinos who now live here permanently, this sacrifice – of leaving family – is one reason why they send aguinaldos. Many say, it’s not just about money, rather, it’s about reminding their loved ones back home how much they are missed, how much they are loved. An aguinaldo is a fresh reminder that the bonds they have, while they are separated, remain solidly intact, some say.
Aguinaldo money remittances from Hawaii
Mila Julian, Honolulu, said “it is customary to send remittances during the Christmas season as a present. We usually send money or both money and balikbayan boxes to our sisters on both sides of the family.” A balikbayan box is a large box filled with gifts, usually nonperishable food, canned goods, snacks or useful, practical items like batteries or nonprescription medicine or common household items.
“They’re always grateful for what we can give, especially during Christmas. It’s always nice to give and receive gifts. We not only give during Christmas, but we also give throughout the year,” said Julian, who is from the Philippines.
Julian said they go to the Philippine National Bank in Honolulu to deposit money in their sisters’ accounts. “It is safe and guarantees the money is there for our family members to withdraw.”
PNB has one of the highest ratings listed in Yelp among Hawaii customers.
Dr. Amelia Jacang, also from the Philippines and lives in Honolulu, said she usually sends money to her nieces and nephew in the Philippines before Christmas. “Occasionally if a friend or relative is going home for Christmas, I would send it through them. This is a safer way to send money. I give $100.00 to each family. I don’t normally get anything in return and that’s the whole essence of giving. I remember being there for the Christmas holidays, and I would give gifts instead of money. They are very grateful for whatever you give. Most of my family are in the states so I do have a lot of friends to give presents to when I happen to go home.”
Leonard Polanco, 56, Pearl City, an executive chef at one of Waikiki’s largest hotels, second generation Filipino-American, said he has only a few cousins left in the Philippines. “Every one of my relatives in my parents’ generation has already passed on. But my brothers, sisters and I will continue this tradition in memory of my parents. It’s something that we’ve been doing since we became working adults. We also have cousins on the mainland and Europe who send money to our relatives in the Philippines as well. Christmas is about celebrating Jesus’ birth and sharing blessings. This is what my parents taught us and we’re more than happy to spread blessings to our family in the Philippines. The Philippines is doing well and our cousins there are also thriving. But it’s the goodwill and thought that make the monetary gift special.”
Polanco said he and his brother would give their aguinaldos to their eldest sister who remits the money through Western Union. “This way there is only one transaction fee and our family there get to enjoy more of the money sent,” said Polanco.
Hawaii remittance agents say they expect this year to have remittances at the same level as pre-pandemic levels. 2022 was the first year that remittances sent from Hawaii started to rebound, but not fully, they say. The years 2020 and 2021 were pandemic years, followed by last year’s recession that dampened hopes for a full recovery.
Local agents say the average remittance sent to the Philippines during the holiday season is between $200-$300.
In the Philippines
Bianca Santos, who studied in Hawaii for college but has since returned to the Philippines, said “Remittances are a big part of Filipino culture, for sure. Even here in the Philippines, my family in Manila would send money to their family members in the province. And sometimes, my grandma who lives in the province will still send me some Christmas aguinaldo as I live here in Manila.”
As for her relatives living abroad, including Hawaii, Santos said she is grateful to receive a Christmas aguinaldo from them. “I feel very touched when relatives abroad send money as a Christmas gift. Even with the distance, they still remember me and my siblings during the holiday season. My siblings and I would receive an aguinaldo from our grandma and auntie from Hawaii.”
She said there was a time when they would fly back home to the Philippines for the holidays. “Back then, we would receive a crisp $50 bill as our aguinaldo. We would go to the store to exchange it for pesos and spend that money buying whatever we wanted to eat and play with. Sometimes, they would even give us extra $1 bills and we would keep that in our wallets as a kind of lucky charm.
“Although money remittance gives us money in pesos already, we still benefit from it greatly because we still get to spend the money they gifted to us on something that we want. It’s like they’re also here in the Philippines spending time with us.
“After we shop our stuff with the aguinaldo they sent over through a remittance center, we would call them via Facebook Messenger to show them what we bought with their aguinaldo. I’m pretty old now to buy something with the money as I chose to stash it in my savings account but seeing my little sister showcase her new Barbie dolls to our Hawaii relatives warms our heart,” said Santos.
Types of services for remittances
There are many companies in Hawaii that offer remittance services to the Philippines. To start, it’s recommended that senders look at independent reviews of money transfers like nerdwallet.com, Investopedia.com, money.com and others. When looking over reviews, it’s important to know who is conducting the review to ensure it is an independent source. Fees vary from company to company for each remittance. It could be under 6% or less of the total amount being sent.
Some banks will offer this service for free with an account at their bank.
There are large money transfer companies like Western Union and Paypal services like Xoom.
Money transfer could be made online to Visa, Mastercard cards, directly to bank accounts or bank cards, or directly via digital wallets in the Philippines for low fees. Transfers could also be made by phone with some companies offering 24/7 global support.
Transfers have gotten so efficient that processing time could be three days or less and convenient for the late Christmas shopper-sender.
As for cash pickup, this method has gotten so efficient that cash pickup in the Philippines could be available as soon as one hour or sooner.
There are also remittance apps for those who send money on a regular basis. The process: get the app, create an account, and set up your first money transfer (need to do only once). There are also reviews on these apps as well.
The global remittance industry is competitive and enormous which enables efficiency and multiple modes for convenience. The global remittance market size was valued at USD $48.99 billion in 2021, according to Grandview Research.
Industry experts say senders should shop for the best combination of low fees and best service. If timing is important, consider a company that can transfer money fast enough and cash pick-up locations nearest to the receiver.
Senders should also be aware of scams such as receiver’s fraud (people who claim money that wasn’t destined for them, agent fraud (agent embezzling money), or fake rogue websites that misappropriate funds.
Experts suggest that you inform the receiver of the money when you will be sending the transfer beforehand and coordinate a time for the receiver to check if funds have been received as soon as the money is transferred.
Reason for the Season, Jesus
For many Filipino Catholics they say aguinaldo remittances and gift-giving is an expression and a reminder of the ultimate gift that God gave to the world by sending his son Jesus for humanity’s salvation – the true essence of why they celebrate Christmas.
Some say they reflect on the biblical Magi or three kings who visited Jesus after his birth bearing gifts of gold, frankincense and myrrh, the first gift-gifting at the first Christmas.
In the gospel, book of Matthew, after Jesus birth, Herod the Great, king of Judea, ordered the execution of all male children who are two years old and under in the vicinity of Bethlehem. Herod sought the death of Jesus because of reports by the Magi that the king of the Jews was born in Bethlehem. This is known as the Massacre of the Innocents. An angel visited Joseph to warn him of Herod’s plan, so the holy family became refugees of violence and fled into Egypt.
The post Nativity story of this massacre is not commonly thought of or included in the Christmas narrative. But the contrast between the silent Holy Night of Jesus’ birth, calm and peaceful, to the ensuing violence of Herod’s slaughter instigated by a fear of a rising “political” king to threaten his rule in Judea — is a reminder of humanity’s cyclical history of war and peace, and violence of the ruling class over oppressed people.
As violence tears down communities in the region of Jesus’ birthplace this Christmas, the popular Christmas message of peace and goodwill to men carries extra meaning for some.
Jake Abela, medical extern at Primary Care Clinic of Hawaii, said “I believe that world peace holds immeasurable significance, even if its impact may not always be immediately apparent in our daily lives. Our existence is inevitably intertwined with the state of peace in the world. Imagine the potential for positive change that we could have accomplished when we choose to allocate resources toward improving lives instead of perpetuating war. Let us not forget that time lost for advancements in technology, healthcare, and the economy is time lost for the betterment of humanity. I firmly believe that every moment is an opportunity to enhance the well-being of people, and we must strive to seize it with unwavering determination. Fostering a global culture of peace and actively working towards its realization is an investment that promises a better future for all.”
He said Christmas is a reminder of the universal ideals of peace love, and joy. “It transcends religious and cultural boundaries, uniting people in the shared pursuit of creating a world where these values are seen. We see it all around us when the Christmas season begins, through the decorations and messages that revolve around social media and advertisements and throughout the music that we listen to. The Christmas season becomes a time to inspire positive change, promote understanding, and foster a sense of community that extends beyond individual celebrations,” said Abela.
His Christmas message this year is “Through the pain and suffering of war, we are reminded of the preciousness of life and the importance of peace. It is only by recognizing the futility of violence that we can truly appreciate the value of cooperation and understanding. Even in the midst of conflict, we must strive to maintain our humanity and extend compassion to those who are suffering. For when we choose empathy over aggression, we elevate ourselves and honor the true spirit of humanity.”
Dr. Jacang’s Christmas message this year: “I hope this Christmas will be a blessed and wonderful one for everyone after experiencing two years of the pandemic! Enjoy and be safe and may 2024 be a. prosperous and happy year!”
