Determinants of Financial Security of Overseas Filipino Workers' Dependents (OFWDS): An Analysis of Remittance Management of OFWDs in Region 12, Philippines

Several studies were conducted on the financial behavior of Overseas Filipino Workers (OFW), but few on the families and dependents who are the recipient of an OFW income. This study aimed to determine the financial security of Overseas Filipino Workers’ Dependents (OFWDs) through remittance management practices in terms of savings patterns, investment behavior, spending practices, and debt management (SISD). The research design used in the study was descriptive correlational using Multiple Regression Analysis – Stepwise Method to generate the model that best explained the determinants of Financial Security. Findings showed that OFWD has a low level of financial literacy, which affects the way how remittance is managed. It also reflects in the result that the relationship of the OFW to the one who managed the remittance, the number of years in receiving remittance, have no moderation effect on SISD, and financial security. While financial literacy exhibited to have a moderation effect on savings patterns and investment behavior towards financial security. The remittance management of OFWDs in terms of SISD and the level of financial security is good. This study revealed that savings patterns, investment behavior, spending practices, and debt management significantly predict the financial security of the OFWDs, where the investment behavior proved to have the strongest contribution to the prediction of financial security. Hence, to be financially secured, programs related to investment and financial literacy should be strengthened to equip the OFWD in engaging in an investment activity where they are knowledgeable.