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International Day of Family Remittances

Imagine a day dedicated to celebrating the hard work and love that connect families across borders. The International Day of Family Remittances does just that.

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Position remittance services and financial inclusion platforms as enablers of family connection and economic empowerment for migrant workers globally.

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Stories of migrant workers supporting families across borders—humanize the 200M+ workers behind remittances
Financial inclusion tips: how to reduce remittance costs and access better money-transfer services
Partner spotlights: banks and fintech companies lowering barriers to affordable cross-border payments
Community impact: showcase how remittances strengthen local economies and lift families out of poverty

History

The International Day of Family Remittances (IDFR) has a rich history that reflects the evolving recognition of the vital role that remittances play in the lives of families and communities around the globe.

The idea for the day started in 2013 and it was led by the IFAD, International Fund for Agricultural Development, which is a branch of the UN. The inaugural celebration was held in 2015 and the day was officially recognized by the United Nations General Assembly in 2018.

This event highlights the contributions of over 200 million migrants who improve the lives of their family members back home. The day not only acknowledges the significant financial contributions of migrants but also emphasizes the need to lower the cost of sending money home and to promote financial inclusion through remittances.

The IDFR aims to draw attention to the impact these contributions have on millions of households, communities, and countries, encouraging actions that maximize the positive effects of remittances.

The tradition of sending remittances is not new and has deep historical roots. For instance, countries like Italy, Spain, and Ireland have relied heavily on remittances from their emigrants since the 19th century. Italy became the first country to enact a law protecting remittances in 1901.

By 1960, Spain signed an international treaty with Argentina to reduce the cost of receiving remittances. The importance of understanding and managing remittance flows led to the World Bank establishing the first international database of remittance prices in 2008.

Remittances play a crucial role in improving the well-being of family members in the migrants’ home countries and boosting the economies of receiving countries. They are often used to cover essential expenses such as food, healthcare, and education, contributing significantly to rural development and poverty alleviation.

The observance of IDFR reminds us of the resilience of migrant workers and the critical support they provide to their families. It highlights the interconnectedness of global communities and the shared goal of achieving sustainable development for all.

FAQ

How do family remittances typically change how a household spends money?

Research from the United Nations and the World Bank finds that family remittances are most often used to cover everyday essentials such as food, rent, utilities, and basic household goods, which helps families smooth their consumption over time and cope better with income shocks. Studies also show that once basic needs are met, many households shift part of their remittances toward longer-term spending, including school fees, health care, and modest home improvements.

Do remittances actually improve education and health outcomes for children?

Evidence from multi‑country studies suggests that households receiving international remittances tend to spend more on schooling and health services and that children in these families often have higher school enrollment and better health indicators than similar non‑recipient households. A World Bank analysis, for example, links remittance income to increased investment in education and to improved child health outcomes in several developing countries. [1]

Are remittances mainly a safety net, or can they also support entrepreneurship?

For many families, remittances first function as a safety net that secures food, housing, and basic services, especially in rural areas. Once those needs are covered and transfers are predictable, part of the money can be channeled into small enterprises, such as family shops, farming improvements, or local services, which can create additional income and jobs. UN and IFAD materials highlight this dual role, noting that remittances both protect households from poverty and can help finance micro and small businesses when conditions are favorable. [1]

Why do many migrants still use informal channels when sending money home?

Migrants often turn to informal channels, such as giving cash to travelers or unregistered intermediaries, when formal services are too expensive, hard to access, or require documents they do not have. Research by central banks and the IMF shows that informal methods can offer flexibility and familiarity within diaspora networks but operate outside financial regulation, provide little legal recourse if money is lost, and keep families disconnected from formal savings and credit services. [1]

What are the main risks of using informal remittance channels for families?

Informal channels expose senders and recipients to a higher risk of theft, non‑delivery, or loss of funds, since transactions are typically based on trust and lack written records or regulated oversight. IMF and central banking analyses point out that when problems occur in these channels, there is usually no consumer protection body to appeal to, and regular use of informal routes means households miss out on building a relationship with formal financial institutions that could later provide savings accounts or loans. [1]

How do remittance fees affect the money that families actually receive?

Transaction fees and exchange‑rate margins reduce the portion of each transfer that arrives in a family’s hands, which can be significant for low‑income households that rely on small but frequent payments. The World Bank’s Remittance Prices Worldwide database shows that global average costs for sending a typical low‑value transfer still exceed the Sustainable Development Goal target of less than 3 percent, meaning families often lose several percentage points of every remitted dollar to fees and spreads. [1]

In what ways can remittances promote financial inclusion in receiving countries?

When sent and received through regulated providers, remittances can serve as an entry point for people who have never used a bank or digital account before. World Bank and UN materials note that linking transfers to basic transaction accounts, mobile wallets, or savings products allows families to store funds more safely, build a financial history, and eventually access credit or insurance, which strengthens their resilience beyond the immediate cash received. [1]