The post Migrants Sent Nearly $730 Billion Home Last Year: Here’s Where the Money Is Going first appeared on Crafting Your Home.
Money sent home by migrants has become a powerful financial lifeline for families worldwide, and the latest figures show how dramatically that flow has grown.
In 2025, migrants sent an estimated $728.6 billion to low- and middle-income countries, according to the International Fund for Agricultural Development (IFAD). That is almost double the $375.6 billion recorded in 2016.
The increase means money earned by people living and working abroad is playing an increasingly important role in the lives of relatives who remain in their countries of origin.
Where does all that money go?
For many families, remittances are not simply extra spending money. They can become part of the household budget, covering everyday necessities.
IFAD estimates that about three-quarters of remittances go to immediate household needs, including food, shelter, and utilities.
The remaining money can go toward longer-term priorities such as education, healthcare, housing, savings, and businesses.
That can make the money particularly important when families are trying to improve their living conditions. A relative working overseas may help pay household bills, contribute to construction or repairs, or put money aside for a family’s future.
Millions of families depend on migrant income.
The system is enormous in scale.
IFAD estimates that around 220 million migrants and diaspora members support approximately 1.1 billion relatives.
Individual transfers can be much smaller than the headline $728.6 billion figure suggests. The organization says payments commonly range from about $300 to $400 and may be sent several times a year.
For a household receiving those transfers, however, repeated payments can add up.
The money can help families manage expenses while also allowing them to save or invest in longer-term needs.
Rural communities are benefiting too.
The impact of remittances extends beyond individual households.
According to IFAD, almost $233 billion in remittances reached rural economies in 2025.
The organization estimates that households receiving remittances invest about $22 billion annually in rural agrifood systems.y
This means money sent by migrants can also flow into local economic activity, particularly in rural communities where families may have fewer income sources.
Housing, farming, education and local services can all be affected when households have additional financial resources to spend or invest.
Some regions have seen especially large increases.
Remittance growth has varied considerably between regions.
Latin America and the Caribbean recorded the fastest growth during the decade covered by the IFAD report. Remittances to the region reached $168.6 billion in 2025, up 132% from 2016.
Asia and the Pacific remained the largest recipient region, receiving approximately $384.9 billion, or 53% of the global total.
Africa received an estimated $124.2 billion in 2025, an increase of 86% compared with 2016.
The figures demonstrate how strongly migration and family finances are connected across different parts of the world.
Digital transfers are changing how families receive money.
Sending money across borders has also become increasingly digital.
More than half of remittances now originate through digital channels. However, IFAD says only about 35% of the services it measured in 2025 were fully digital from the sender through to the recipient.
Cost remains another important issue.
According to the report, digital transfers averaged around *4.6% of the amount sent, compared with approximately *7.3% for no.
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