Understanding World Savings Day

World Savings Day is observed each year on October 31st as a global initiative to encourage people to save money and build financial security. It was established in 1924 during the first International Savings Bank Congress in Milan, where delegates from 29 countries resolved to promote the “thought of saving” worldwide. Also known as World Thrift Day, this observance raises public awareness about the benefits of regular saving and prudent money management. Banks, schools, and other institutions often mark the day with educational campaigns, reminding individuals that setting aside even small amounts today can lead to greater financial stability tomorrow. The underlying message is that cultivating a habit of saving – however modest – is fundamental to the financial well-being of every person and contributes to the economic health of communities.

Why Saving Matters for Remittance Senders

For migrants and overseas workers who send money home, prudent money management is especially vital. Migrant workers typically send about $200–$300 home every month or two, which represents only ~15% of their earnings – the remaining 85% stays in the country where they work to cover their own living expenses. This means they must budget carefully for themselves while also supporting family back home. By saving a portion of their income and spending wisely, migrants can build an emergency fund and work toward future goals even as they continue to remit funds. According to UN data, around 75% of the money sent in remittances is used for essentials like food, housing, medical, and school costs. The rest – roughly 25% of remittance flows, over $100 billion per year – can be saved or invested in asset-building or income-generating activities. Developing good savings habits ensures that hard-earned money is used effectively: covering immediate needs, providing a cushion for unexpected events, and creating opportunities for a more secure future both for senders and their families.

Practical Money-Saving Tips

Developing disciplined saving habits doesn’t have to be difficult. In honor of World Savings Day, here are some practical tips to help anyone – especially those with family overseas – make the most of their money:

• Distinguish Needs vs. Wants: Before making a purchase, pause to determine if it’s a necessity or just a desire. Practicing mindful spending by questioning each expense helps cut impulsive buys and keeps more money in your pocket. Focusing on needs first ensures that your hard-earned cash goes toward essentials and long-term goals.
• Set Clear Savings Goals: Define both short-term and long-term financial targets – for example, building a $500 emergency fund, saving for a family event, or accumulating a down payment for a home. Having specific goals gives you motivation and a sense of purpose to save regularly. Track your progress and celebrate milestones to stay encouraged.
• Save Consistently (Even Small Amounts): Make saving a habit with each paycheck or remittance. Even small daily or monthly contributions can add up significantly over time. You might automate a transfer to a savings account or set aside a fixed percentage of income every month (“pay yourself first”) to build your nest egg steadily without having to think about it.
• Track Expenses and Budget: Keep a simple budget to record your income and all expenses. Noting and reviewing your spending each month makes it easier to spot areas where you can cut costs (for instance, dining out less or finding a cheaper phone plan). By sticking to a budget, you ensure you live within your means and free up extra money that can be directed into savings.
• Build an Emergency Fund: Aim to reserve at least 2–3 months’ worth of living expenses in an accessible savings account for emergencies. Financial experts often recommend this buffer so that unexpected setbacks (like a job loss or medical bill) don’t derail your finances. In fact, having an emergency fund of about three times your monthly income is a good first goal for financial security. This cushion will give you flexibility and peace of mind, knowing you can handle surprise expenses without going into debt.
• Avoid High-Interest Debt: Be careful with loans and credit. High-interest debts (such as credit cards or payday loans) can quickly eat away at your income, making it harder to save. Whenever possible, pay down existing debts aggressively – starting with the highest interest rates – and try to avoid taking on new unnecessary debt. By maintaining a good credit score and seeking low-interest options when you do need to borrow, you’ll reduce interest costs and keep more money available for savings.

By implementing these practices, remittance senders can improve their own financial stability and have more resources available to support loved ones. Saving money is a gradual process, but over time, these smart habits make a significant difference.

Cost-Effective and Secure Ways to Send Money

Digital money transfer apps and online services often charge far lower fees than traditional bank transfers, allowing more of your money to reach home. By contrast, many conventional remittance methods still come with high costs – globally, sending remittances incurs about 6.3% in fees on average, which is more than twice the U.N. target of 3%. Fortunately, there are strategies to reduce fees and send money smarter. Here are some tips to make your international transfers more cost-effective and secure:

• Compare Providers and Fees: Before each remittance, compare the transfer fees and exchange rates offered by different services. A little research can save a lot – the difference in cost between banks, money transfer operators, and online platforms can be substantial. Remember that banks are often the costliest way to send money abroad, whereas digital and mobile money channels tend to be much cheaper on average. Choosing a service with lower fees or a better rate means your family receives more of the money you send.
• Use Low-Cost Digital Platforms: Take advantage of fintech innovations that let you send money online or via smartphone app securely, and at low cost. Online remittance services usually have lower overhead than physical agents, so they can charge less. For example, sendvalu – a global remittance platform available on the web and as a mobile app (on both Google Play and Apple App Store) – offers transparent, low fees, and competitive exchange rates to send money to 100+ countries. Transfers through such digital services are often fast (many recipients get funds within minutes) and can be up to 90% cheaper in fees than a typical bank wire transfer. By using reputable digital providers, you not only save money on every transaction but also gain the convenience of sending funds anytime, anywhere with just a few clicks.
• Time Your Transfers Wisely: Keep an eye on currency exchange rates and try to send money when you get a more favorable rate. Even a small improvement in the rate can mean a bit extra for your recipient. While it’s hard to predict forex movements, staying informed (or using rate alert tools) can help. Additionally, if your transfer isn’t urgent, you might avoid sending during peak periods when some providers add surcharges (for example, around certain holidays). Timing your remittances strategically can stretch the value of each dollar sent.
• Stick to Secure, Legal Channels: Always use regulated and official remittance channels to protect your money. Trusted providers offer tracking numbers (e.g. MTCN for Western Union) and encryption to ensure your funds arrive safely. Steer clear of unlicensed informal channels or carrying large sums of cash internationally – these can be risky and may violate laws. It’s worth paying a modest fee for the assurance that your transfer is traceable and protected against fraud. In addition, using formal channels helps build a financial history for you and your recipients, which can improve access to banking services in the long run.
• Leverage Promotions and Loyalty Programs: Keep an eye out for special offers that can reduce your transfer costs. Many money transfer companies run promotions – for instance, referral bonuses, seasonal discounts, or fee waivers for first-time users. Take advantage of these when available. (For example, sendvalu lets new customers make their first transfer with no fee.) Some providers also have loyalty programs or volume discounts, so if you send money frequently, you could benefit from accumulating points or sending larger amounts less often. Utilizing these deals can further cut down the cost of remittances over time.

By choosing efficient remittance methods and being mindful of fees, you’ll keep more money in your pocket while ensuring your loved ones receive funds quickly and safely. This aligns with international efforts (like the G20 and UN goals) to make remittances cheaper and more accessible for migrants. In short, smarter sending means doing a bit of homework to maximize the value of every dollar you send abroad.

A Global Perspective on Saving and Sending

World Savings Day serves as a reminder that sound financial habits are crucial no matter where you live or work. This is especially true for the millions of migrants worldwide who form a bridge between economies – earning in one country and supporting family in another. For these individuals, the principles of saving and sending go hand-in-hand. Small changes in daily behavior, like trimming unnecessary expenses or using a lower-cost money transfer service, can make a surprisingly big difference over time in your financial well-being.

By being disciplined about saving and savvy about remittances, you can ensure that your hard-earned money goes further. The spirit of World Savings Day is about building a secure future through smart choices. Whether it’s setting aside a few extra dollars each month or finding a remittance platform that charges a fraction of what you used to pay, every step counts. Embracing these practices will help you support your loved ones back home more effectively while also strengthening your own financial foundation – a true win-win that honors the goal of financial prudence on this day and every day.

Sources:

Checkiday.com – World Savings Day

Wikipedia – World Savings Day

Capacity4dev – Remittances

Sparkassenstiftung Türkiye – World Savings Day

Atlantic Council – Advancing a twenty-first century approach to remittances