A little over half of a Filipino household’s monthly income, or roughly 51 percent, goes to covering educational costs, global money transmitter WorldRemit found in its latest survey.
The digital cross-borders app found in its 3rd year of mounting the survey that the cost of school supplies in the Philippine rose 16 percent while comparing the price of uniforms, stationery and extra supplies like bags across 21 countries from 2022 to 2023.
“We have to think about frequency of use in relation to these school supplies. As children are more likely to go through stationery like a pencil quicker than wearing down a uniform, the higher cost adds up over time. And if there is more than one student in a household, these costs multiply accordingly,” said WorldRemit Asia Pacific head Earl Melivo.
Figures revealed by the study showed that overseas remittances sent from June and July are traditionally higher compared to other months of the year to pay for tuition fees and school supplies in preparation for the opening of classes in August.
Amid global economic circumstances, 40 percent of observed countries are expected to pay more than their monthly income on school supplies while in countries outside of North America, Europe and Australia, cost differences were far more drastic, where yearly changes averaged an increase of 78 percent.
The app cited data from the United Nations stating that 1 in 9 people worldwide rely on money sent from friends and relatives who have migrated abroad for work. According to Social Weather Stations, 7 percent of Filipino households have an OFW family member working abroad and about 75 percent say that family members working overseas regularly send money back home.
“Education is one of the top reasons people send money back home. For Filipino families, especially those whose monthly income just suffices for daily needs, remittances from overseas supplement their ability to afford essential school supplies, as well as manage steep costs like tuition, transportation and childcare,” Melivo said.
The Philippines had the 3rd highest remittance inflow in the Asia and Pacific region at 11 percent in 2022.