Some economists say the U.S. is in a recession and others worry of the possibility of stagflation (stagnant economy plus high inflation). Add to that the U.S. layoffs soared past 1.1 million in 2025, the highest level since the pandemic.
Despite financial and job uncertainty and a time of austerity, Filipino Americans who practice the tradition of sending money remittances (aguinaldos) to family and friends in the Philippines say they will do it again for this holiday season.
Why send an aguinaldo remittance? Aguinaldos, or cash gifts to the Philippines during the holidays, to Filipinos take on several meanings. First and foremost, it’s an act of love, of sharing one’s blessings to people close to the heart of the sender. An aguinaldo remittance serves to bridge the distance between Filipino families. It’s a symbol saying despite our separation in time (often decades) and space, we are connected, our bonds unbreakable.
There is also a matter of utang na loob a Filipino concept that translates to “debt of gratitude” and reciprocity in relationships. For example, typically, family members like older siblings will help their younger sister (or brother) receive an education. If that younger sister gets a chance to move or work abroad, she will have a debt of gratitude to give back to her elder siblings. The most typical way would be the annual aguinaldo remittance which most likely would be spent on household needs like groceries, cleaning supplies, new appliances or other practical means like paying bills. But utang na loob is not a cold transactional reciprocity or requirement, rather it’s rooted, again, in love with deep appreciation.
Remittances boost the Philippines’ economy While an aguinaldo remittance will spur consumer spending for immediate needs, the vast bulk of money remittances are sent by Overseas Filipino Workers (OFW) around the globe working in the U.S., other parts of Asia, the Middle East and Europe. That’s millions upon millions flowing into the Philippines to the tune of 9% of the country’s GDP.
This is the real money that will sustain OFW’s households, fund education, buy a car, buy a house, put meals on the table daily and cover healthcare costs. Millions of Filipino families are supported by OFWs and their remittances collectively is a significant economic driver of the Philippines which is often called the lifeblood that supports OFW families and communities.
Drawback of remittances There’s been pushback from Filipinos who’ve criticized the Philippine government for exporting its people and not being able to provide domestic opportunities to prevent the need for OFWs in the first place. Millions of Filipinos also speak of the lost years, lost time with their OFW parents, of them missing holidays, missing birthdays or not being with them as they grew up. Some will say the sacrifice of separation is not worth the money their OFW family brings.
The Catch 22 conundrum Clearly remittances have consistently been one of the Philippines’ most significant sources of foreign exchange, labor out for money brought into the country. It’s been steady inflow of money rendering macoeconomic stability. It’s smart and necessary to continue to export their talent abroad.
But for decades of the Philippine government’s talk about weening of OFW money and strengthening their domestic economy has been marginally successful at best. The country has been spared from potential vulnerabilities – like a global or regional recession — in overly relying on OFW money. Anti-immigration policies in host countries could be a future problem.
There will always be opportunities abroad in the modern global economy, but Filipinos deserve equal or similar work opportunities domestically as abroad. The pay gap shouldn’t be too drastic between Philippines’ salary and salary from a foreign host country that millions of their own citizens “need” to enlist in the OFW lifestyle.
It’s apparent that remittances are deeply personal and transformative for millions of Filipino families that keeps open the door for countless opportunities. In this vein, it’s true that OFWs are the heralded heroes their families and government say they are.
Remittances should be channeled in long-term investments that help to build the country like OFW families venturing into small to medium sized businesses.
Earlier it’s mentioned how aguinaldo remittance binds the connection between Filipino families. This alone is worth carrying on the tradition of remittance gift-giving during Christmas. But there is also another reason: remittances bind the Filipino diaspora like those of us in Hawaii to our ancestral country. We are always wishing the best for the Philippines.
Merry Christmas As the holiday season embraces us with its warmth and joy, we the staff and management of the Hawaii Filipino Chronicle want to extend our heartfelt gratitude to you — our loyal readers, advertisers and friends — for your years of support. Thank you for welcoming us to be a part of your lives and for your trust in our reporting. We wish you all a very Merry Christmas filled with copious love, fun and laughter. Joy to the world, that Christ is born.
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