Poor workers scrimp, send money home

$45 billion will be shipped back to families this year, survey says

Daniel González
The Arizona Republic
Dec. 11, 2006 12:00 AM

The immigrants who send money home to family in Latin America are a frugal lot.

Take Martin Armenta, for example. The Phoenix resident takes home $380 a week after taxes from his job as a cook. Yet he sends more than a third of his paycheck to his wife and two children in Sonora.

How does he do it? With some serious scrimping. Armenta, 31, shares a three-bedroom house with seven other immigrant men, watches TV for entertainment and never goes out to eat.

Latino immigrants such as Armenta will send $45 billion home this year, up from $30 billion in 2004. Yet they tend to be poor by American standards, with the majority earning less than $30,000 a year, according to a survey by the Inter-American Development Bank.

The survey sheds light on the explosive growth of remittances and the role they play in alleviating poverty, influencing migration and shaping economic policies in developing countries. It also underscores the tremendous potential remittances hold for fostering economic development in the U.S. and abroad.

Experts have known for years that immigrants send wads of cash to relatives back home. But the Inter-American Development Bank study found that the average amount sent per month has climbed to $300, up from $240 in 2004, even though the average sender earns only $900 a month.