With the holiday season just right around the corner, the upcoming festive time should be celebrated without breaking the bank.
But for Overseas Filipino Workers (OFWs) and freelancers, managing costs can be tougher due to high fees and unfavorable exchange rates when sending money home.
Here are some tips from the global fintech company Wise on how you can manage your finances this holiday season:
Set a realistic holiday budget
Start by creating a clear budget for all your holiday expenses—gifts, decorations, food, and travel. Knowing how much you can spend helps prevent financial surprises, especially during the season of flash sales and unplanned gatherings.
Track each expense and include a buffer for last-minute reunions or extra gifts to stay on track.
Save on international money transfers
A recent Wise survey revealed that three in five Filipinos engage in international transactions at least once a month, but 21% are unaware of hidden fees like exchange rate mark-ups.
Many consumers overlook the two primary costs of foreign currency transactions: the transaction fee and the exchange rate. High fees and unfavorable exchange rates can reduce earnings for Filipinos sending money to loved ones or receiving international payments.
For OFWs and Filipinos living abroad, customers can pay a single upfront fee and receive the mid-market exchange rate, as seen on Google, with no hidden charges for money transfers using Wise.
Philippine freelancers can also receive payments in multiple currencies with no fees and withdraw funds to local bank accounts or digital wallets like GCash and PayMaya.
Opt for group gifts and shop smart online
The upcoming 12.12 sale may sound enticing, with shoppers turning to international sites for promising deals, but hidden fees from international purchases can quickly add up, impacting overall savings.
To manage holiday expenses, consider pooling resources with family or friends for a meaningful group gift or organizing a “Monito Monita” (Secret Santa) exchange. Setting a budget limit can help avoid financial strain, allowing you to focus on practical and thoughtful gifts.
To save during your holiday shopping, be mindful of card fees. Traditional credit cards often charge 1% to 3% in foreign transaction fees and can have unclear exchange rates.
Watch out for dynamic currency conversion, where merchants may offer to charge you in your home currency instead of the local currency at checkout.
Consider using a multi-currency account with Wise, where you can shop from international retailers and pay in local currencies.
Cut down on holiday travel expenses
Find ways to stretch your budget during a well-deserved break by booking flights and accommodations early to secure the best deals.
The holiday season is all about celebration and family, but it does not have to come at a high cost. The Wise card will allow you to spend in over 160 countries at the mid-market exchange rate without hidden fees.
Wise is licensed and regulated by the Bangko Sentral Ng Pilipinas (BSP) and ensures full compliance with local regulations.