The year is not even a month old, and I have been approached three times already for loans, ranging for $2000 - $5000. All of the loans are for 'show money' to prove to the government/landlords/etc access to funds.
Now, I am not resistant in helping people, when they are need, but I have to wonder, where money is spent from employment. I understand the need to help the family back home, but from anecdotical observations, a sizeable portion of the money sent home is spent on needless luxuries. I was always taught to save money for a rainy day, so would it not make sense to sent less home, and save something for tomorrow. Or am I being unreasonable? Is it necessary to support nieces/nephews by giving them the latest phone, while you have no money for yourself?
I guess I am just perplexed on the thought pattern.
It's a difference in cultural expectations. The Western culture of North America and Europe encourages people to be independent and do for themselves, so emergencies are expected to be paid for from savings set aside for the purpose. Westerners tend to buy big ticket items the same way, save until most of the money is available, then buy.
In Philippines and large parts of SE Asia and Pacifica, the community is expected to help when things go wrong. So instead of putting money in savings to be used for future need you spend it today for things you want or to help friends and family with their financial emergencies. The social network replaces the savings account.
Needless to say the independent Payday Loan providers (it is often the neighbor who saves their money and loans it out to anyone in the neighborhood who is short that week) and pawnshops are big money makers as people turn to these quick loan outlets whenever they need to dip into "savings".
This is often a source of trouble between the Kano and the Filipino relatives as the Kanos ask "Why do they need to ask for help?" and the Filipinos ask "Why aren't they willing to help when asked?"
Both cultures view installments the same way though ... take it home today and pay extra for the privilege of dribbling the payment out over many months after the purchase. This can lead to major budget problems as the buyer "discovers" afterward that the bill for the payment keeps coming back to take a bite out of their income for months or even years after the purchase.
@Cartero When Yanks are asked for money, they tend to hear $USD amounts because that is what the bank account holds. Even when the request is for pesos, euros, pounds etc., the Yank thinks in the dollar equivalents that are everyday usage.
The adventure continues