The Best Ways to Save Money and Avoid Scams When Sending Money Abroad

As an African in the diaspora, you know that sending money back home is often a necessity, whether it’s supporting family, investing in business, or saving for the future. This article is here to help you navigate the world of international money transfers and ensure you keep your hard-earned money safe

You’re at Balogun Market, looking for the best deal on aso ebi (traditional cloth). One stall owner shouts, “This material is practically free!” You know that’s a red flag, right? The same goes for money transfer services. A ridiculously low exchange rate or hidden fees are like that too-good-to-be-true fabric—it’ll leave you feeling itchy and ripped off.

Here’s the key: Shop around! Don’t be loyal to the first service that winks at you. Compare rates using online resources, or ask friends for recommendations. Remember, Oga John, who sends money every month to his village, might have the perfect service for him, but it may not be the best fit for your needs.

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Understanding the Landscape of International Money Transfers

The international money transfer market is vast and varied, with many service providers and an ever-changing landscape of regulations and fees.

Know the Players

• Banks: Traditional banks offer wire transfers, but these can be costly and slow. 

• Money Transfer Operators (MTOs): Companies like Western Union and MoneyGram offer quick and convenient transfers, often with physical locations for cash pick-up.

• Online Transfer Services: A newer breed of companies, like Wise and WorldRemit, offer digital-only services with competitive rates and fast transfers.

• Mobile Money Services: Services like M-Pesa and MTN Mobile Money have revolutionised money transfers within Africa, offering convenient and affordable options. 

Understand the Fees

• Transfer Fees: This is a flat fee or a percentage of the amount you send. It is often waived for larger transfers. 

• Exchange Rate Markup: Many providers make money by offering less favourable exchange rates. A difference of even a few points can cost you significantly. 

• Receiving Fees: The recipient may be charged a fee to collect the money, especially for cash pick-up services. 

• Correspondent Banking Fees: These are fees charged by intermediary banks used in the transfer process, common in bank wire transfers.

Avoiding Overseas Money Transfer Scams: Don’t Let Them Collect Your Mugu (Fool) Tax

When it comes to sending money overseas, be on high alert for these cunning tricksters:

• The “Distressed Relative” Scam: You receive a frantic call from a “cousin” (you haven’t spoken to in years) claiming an emergency. Don’t panic! Verify the information directly with a trusted family member. Remember, a true emergency won’t disappear with a quick money transfer.

• The “Overpayment” Scam: Someone offers to buy something you’re selling online and wants to send you more money than the asking price. They’ll then ask you to refund the “excess.” Don’t be fooled! This is a sneaky way to steal your initial payment.

• The “Fake Charity” Scam: Be wary of emotional pleas for bogus charities. Research any organisation before donating. 

Here’s the Golden Rule: Never send money to someone you don’t know and trust completely. If something feels fishy, it probably is. Don’t be afraid to say no, and double-check with a trusted source.

Remember this proverb: “The wise man doesn’t walk where the fool has fallen.” Be smart, be safe, and your money will be secure.

Conclusion: Sending Money Home: A Balancing Act

Sending money abroad doesn’t have to be a daunting or costly task. With the right knowledge and precautions, you can save money and avoid scams. Remember to shop around, stay vigilant, and always put your financial safety first. As they say in Swahili, ‘Haraka haraka haina baraka’—haste makes waste. Take your time, and your hard-earned money will go further.

Happy sending, and may your transfers be scam-free!

Financial Infidelity: How Secret Spending Can Destroy Relationships

Financial infidelity is the act of hiding financial information or engaging in secretive spending habits from your partner. 

As we delve into this issue, it’s essential to understand the root causes, the impact on relationships, and strategies to prevent and overcome this growing problem.