To begin with, it’s important to maintain regular communication with your family while you’re away. Make sure you have regular open discussions about finances, but also remember that the conversation should not always be about money, as this can be stressful and can lead to unhealthy family relationships.

It is hard to deal with the guilt of being so far from your children, but remember that money or gifts do not replace your love. Children learn from our behaviour. If you keep sending money or gifts, whether it is needed or not, the lesson they will learn is that it is easy to get money if they ask. If you go on big shopping sprees when you visit home, whether you can afford it or not, the lesson they will learn is that when you come home it means they can shop more. You can still show your love for them but you can lead by example and gently educate them about the value of your money. 

You could show your love in other ways - by having quality conversations with them, showing an interest in their hobbies or passions, or giving them thoughtful, homemade presents that they can cherish. 

You can also share with them what you are learning about financial education, so that they can understand how to save and prepare for their futures, and how to work with you as a team to achieve your goals together. Get them invested in your goals so they can see a direct connection between saving money and having you home to be with them sooner.

Doing this is a long-term investment in their future too, by gifting them essential skills and knowledge, rather than a one-off show of wealth (e.g. new shoes, mobile or iPad). 

It’s important to maintain regular communication with your family while you’re away. Make sure you have regular open discussions about finances, but also remember that the conversation should not always be about money, as this can be stressful and can lead to unhealthy family relationships.

It is best to be transparent and honest with your family about your life in Hong Kong. Be realistic with them and explain your circumstances from the start. You probably don’t want them to worry about you, but being honest at the beginning can help avoid misunderstandings later on and will help them understand your difficulties. 

Share with your family what you are learning about financial education. Tell them about your financial goals and get them on board to work as a team so you can achieve them together. After all, saving for the future means you can go home and be with them sooner!

Attend our Money and Family workshop to learn more about how to talk to your family about your finances.

If the behaviour is violent or potentially a threat to you or your employer, report the loan shark/collecting agent to the Hong Kong Police (999).

Remember to keep calm and do not let insults or threats put you down. 

Contact us immediately for a free confidential one-to-one financial counselling session to receive impartial financial advice. Our counsellors speak English, Tagalog or Bahasa Indonesia. We do not lend money. We only provide neutral advice. You do not have to deal with this on your own. Seek help as soon as possible.

If you feel you can, have an open conversation with your employer about your situation and let them know that you are facing harassment from loan shark. Understand that this might be worrying for them, especially if they were not aware of your financial difficulties beforehand. Reassure them that you are taking action to prevent the money lender/collecting agent from harassing you further. Should your employer have any questions, they can always contact Enrich to receive guidance. 

Ultimately, the decision of how often to remit is up to you, based on what works best for you and your family. Remember that when you remit money, you will be charged cable fees and maybe other service fees every single time, which are an added expense. For example, if you remit the money once a month, you will be charged those fees monthly, but if you are remitting more regularly, you will end up paying a lot more over time only on cable fees.  

Talk to your family about the best arrangement. Having a clear budget that you agree on together will help ensure that they are spending as planned and that they won’t run out of money before you send your next remittance. If you would like them to be a bit more disciplined, ask them to send you receipts for how the money is spent and be firm about sticking to your remittance date (i.e. not sending money earlier if they overspend). This allows them to also become responsible managers of your hard-earned finances - and teaches them financial literacy! 

Always remember that you don’t have to send home all your money - instead, carefully consider their needs and budget accordingly, setting aside your own savings first. If the request is not a ‘need’, it’s okay to say ‘no’ to your family sometimes. After all, saving for the future means you can go home to be with them sooner!

Attend our Money and Family workshop to learn about how to talk to your family about money and involve them in working towards your goals.

Whenever you send money home, make sure to keep a record of all receipts/tracking numbers. If you have remitted money to your family which has not been received after a reasonable amount of time, stay calm and do not panic. Here are some steps you can take:

• Contact the remittance company to find out what the issue might be. 

• File a complaint with the remittance company to claim back your money, including your cable charge. 

• If the remittance company refuses to return your money, you can file a formal complaint to the Customs and Excise Department (C&ED) which manages all money service operators (like remittance/money transfer companies). Call their 24-hour hotline +852 2543 4942 or email [email protected].

• You may wish to file a claim through the Small Claims Tribunal (for amounts of HK$75,000 or less). Seek legal advice from charities HELP for Domestic Workers or Mission for Migrant Workers, or visit a district office of the Duty Lawyer Service for free legal support.

There are several things to consider when deciding on a remittance company:

• Exchange rate: shop around and check for the best possible exchange rate you can get for your hard earned money.

• Cable charge/fee: check for the lowest charge per remittance, and if possible remit only once a month to save on this cost.

• Accessibility: You may need to check how much it will cost you to remit money to certain areas in your country. Take into account and calculate the cost difference when you factor in transportation expenses and other miscellaneous expenses. The same applies for your family members who will receive the money.

• Security: Ensure that you remit money through legitimate and secure channels to avoid losing it along the way. Only remit money through reputable/credible companies.

• Always request a 'printed official receipt' on the spot upon handing over the money for remittance. If you are using an online remittance tool or app, keep a screenshot or record of the transaction on your phone or laptop.

Although we do not recommend any particular companies, here is a comparison of different remittance companies and tools so that you can make your own decision about the best option for you.

Have you ever been invited to a business deal, asked to sell a product, work from home and earn a huge commission? How did you respond to it? Did you know that this could be a multi-level marketing scheme? Remember to always be careful about posts we see on social media even if they are from trusted friends or family members. Always be wary of the risks that this may bring you once you start to engage.

Multi-level marketing may not be a bad thing at all BUT it is best to know it carefully and ask the following questions:

• Are you being asked to ‘invest’ a large amount of money up front to become a distributor? This request can also be disguised as an inventory charge. Legitimate multi-level marketing businesses do not ask for large start up costs.

• If you do have to pay for inventory, will the company buy back any unsold inventory from you? Legitimate multi-level marketing companies will offer and stick to inventory buy-backs for at least 80% of what you paid.

• Is there any mention of a market for the product or service? Multi-level marketing depends on establishing a market for the company's products. If the company doesn't seem to have any interest in consumer demand for its products, that’s a red flag - don't sign up.

• Is there more emphasis placed on recruitment than on selling the product or service? The difference between multilevel marketing and a pyramid scheme is in the focus. The pyramid scheme focuses on fast profits from signing people up and getting their money. If recruitment seems to be the focus of the plan, then do not sign up for this company.

Understand what the focus of the company is by asking yourself:

• Is the plan designed so that you make more money by recruiting new members rather than through sales that you make yourself? This is the signature of a pyramid scheme operation, not a multi-level marketing scheme.

• Are you offered commissions for recruiting new members? This is another sign of a pyramid scheme. It's the number of people who are willing to sign up that matters in a pyramid scheme, not the products or services being offered.

Always be very cautious before investing in any scheme and never borrow money or take out a loan for investment purposes. Money for investments should be any extra money you may have that you do not need to use in the short term. Never invest more than you can afford to lose.

(Points sourced from: The Balance - Susan Ward)

Ponzi schemes and investment scams should be avoided at all costs. Here are some ways to understand and identify them.

A Ponzi scheme is an illegal investment scheme. Earlier investors are paid with so-called “returns” from the money that newer investors contribute. 

Organisers of Ponzi schemes often trick new investors by promising investment opportunities that generate high returns with little or no risk (Risk = the chances of losing your money to an investment). Investors may be asked to bring in a certain number of new investors in order to take part in the investment. Often, family and friends are drawn into take part in the scheme. They contribute money which they believe will be invested in a company, but is actually used to pay earlier investors as ‘returns’.

Identify the following Red Flags to avoid getting scammed:

• Red Flag #1. Low risk and high returns

There is no ‘guaranteed’ investment opportunity. Every investment is risky and higher returns usually involve more risk. If an investment pays back regular, positive returns despite overall market conditions, it may be too good to be true. Investment values tend to go up and down over time, especially those with the potential for high returns.

Ask yourself: Do I understand the risk involved compared to the potential return?

• Red Flag #2. Lack of understanding of the investment/company

The key to protecting oneself from investment scams is to avoid investments you do not understand or for which you cannot get complete information. Ponzi schemes are typically not registered with government regulators and involve unlicensed individuals or unregistered firms. Registration is important because it provides investors with access to key information about the company’s management, products, services and finances. Never accept the claim that you cannot review information about an investment in writing.

Ask yourself: Do I have enough information about the company? Do I have access to information and understand the investment fully?

• Red Flag #3. Recruitment of friends and relatives

Victims of pyramid schemes are often required to recruit others into the scheme. The money from the later investors, their friends and relatives, are used by the organisers to stand as the ‘profits’ from the so-called investment. Eventually, the pyramid schemers will flee with the accrued funds.

Ask yourself: Do I understand the risks of recruiting friends and relatives? Is there a clear explanation how returns are calculated?

• Red Flag #4. Difficulty receiving payments

Pyramid scheme organisers often encourage investors to “roll over” investments and promise higher returns. Be suspicious if you have difficulty cashing out or receiving payments on your investment.

Ask yourself: Is there a systematic process regarding how investors can cash out investments at anytime? Do I know who or where to go to for help if anything goes wrong with the investment scheme?

If you suspect something is a scam, even if you’re unsure, call 18222, the 24-hour hotline of the Anti-Deception Coordination Centre, Hong Kong Police, who can give you more guidance.

Also, attend our Growing My Money workshop to learn more about how to spot investment scams and invest safely.

Investing involves different risk levels. The higher the interest and rate of return, the higher the risk.

Make sure you fully understand the investment opportunity and the associated risk before deciding to make any investment (Risk = the chances of losing your money to an investment).  

There is no single best type of investment for everyone. You have to understand your risk appetite (the level of risk you can and are willing to take) before you invest your money, and also know the purpose of your investment - is it for the short term, medium term or long term? Watch out for scams - if the interest rate offered to you sounds too good to be true, it’s probably not true. 

Do not attempt to borrow money or take out a loan for investment purposes. Money for investments should be any extra money you may have that you do not need to use in the short term. Never invest more than you can afford to lose.

Attend our Growing My Money workshop to learn about different investment tools and how to invest safely.

Before you sign any loan contract - whether it is for your own loan or for a friend’s loan - always read the contract very, very carefully and make sure you understand exactly what your role and obligations are. Here is a simple explanation of what some of the roles might be: 

Borrower: The person who is borrowing money from a bank, money lender or financial institution. Typically, the borrower signs a contract and agrees to certain repayment terms. This person might also be known as the ‘principal borrower’, meaning the person who has borrowed the ‘principal’ or main loan amount.

Guarantor: If you are a guarantor on someone else’s loan, you are promising to the lender that you will repay the borrower’s loan if the borrower does not repay. If you sign as a guarantor on a loan contract, that is legally binding. Only agree to be a guarantor if you can afford the risk. 

Reference: A reference is considered to be just an introduction to the borrower, like a character reference. Referees should not be subject to what is written in the legal agreement. There should not be any obligation to repay someone else’s loan just by being a referee. If you are a referee and have not signed as a guarantor, and if you are being contacted to repay someone else’s loan as though you were a guarantor, you can be very clear and say that you have no legal obligation to pay. 

Witness: Technically, a ‘witness’ is meant to provide confirmation that a contract or transaction has taken place; for a loan contract, a ‘witness’ should not be expected to pay the loan amount  if the borrower cannot repay the loan. However in Hong Kong, money lenders often illegally use the term ‘witness’ in Bahasa Indonesia to refer to either a ‘guarantor’ or ‘reference’. Be cautious of signing a loan that uses this term. Before signing, clarify exactly what the obligations are - specifically whether you will be accountable to pay the loan if the borrower cannot. Be cautious of agreeing to be a ‘witness’ on the phone. If you have not signed someone else’s loan as a guarantor, you are not legally obliged to repay it as a ‘reference’ or ‘witness’.