For many women who work abroad, the decision to leave their families and loved ones back in their home country is not a decision that is made lightly.

Driven by poverty or a desire to improve the lives of their families, these women often pay large sums of money for a chance to work as migrant domestic workers (MDWs) in Hong Kong, where the average cost during their recruitment process is HKD15,000 – a small fortune back in their home countries. This is where the cycle of debt often begins, and for those lacking financial literacy, it can easily spiral out of control.  

One of Enrich’s aims is to break this cycle by arming MDWs with financial and empowerment education. “Most of the women we encounter in our workshops struggle with their personal finances, though all of them are willing to learn,” says Maya Williams, Community Engagement Manager for Enrich. “We want them to leave our workshops inspired and better equipped for their futures.” 

The minimum allowable wage in Hong Kong for MDWs is currently $4,870. For most domestic workers who are considered the breadwinners, 50-60% of their salary is sent back to their families. The remainder is often split between loan payments, food, transportation, and personal expenses. Very little goes towards savings and investments.

“These women come to Hong Kong with the goal of a better life for themselves and their family. But as soon as the money emergencies start – more school payments, maybe someone gets sick – they tend to lose focus,” says Maya. She continues, “We want them to change their mindset and make them empowered. Help them with communication and prioritising their goals.”

A first step on the journey to financial health is the Money Wise Migrants workshop. This free, 4-hour workshop introduces MDWs to personal finance management where they learn and develop skills that can help make their money work for them. They learn how to create a budget, plan and track expenses, set financial goals, and manage money.

This workshop has three key areas: setting goals, the dangers of getting into debt, and financial responsibility. Maya shares, “After they finish the Money Wise Migrants workshop, they are welcome to join our other four advanced workshops (see below), which cover the Financial and Empowerment Education programme.”

All the workshops, coupled with mentoring, and an emphasis on empowerment and mental health, provide a holistic approach to giving domestic workers the necessary tools in order to break the cycle of debt, learn how to communicate better about money with family back home, and set a plan for a better and more financially stable future. Their graduates also have the opportunity to share their knowledge and connect with fellow MDWs in the community through their ambassador programme.

Another persistent problem that Enrich wants to assist domestic workers with is dealing with, and finally ending, chronic indebtedness. There have been many studies that have shown that being in constant debt has adverse psychological and cognitive effects, and debt relief shows immediate improvement in anxiety and stress levels.

“Unfortunately, many MDWs fall vulnerable to misleading and often predatory loan terms. The interest can go beyond the legally allowable rate and most borrowers do not understand how this can affect their monthly payments. We make sure that those who attend our workshops understand their responsibilities and rights when taking out a loan,” Maya says.

The impact of Enrich’s financial literacy and empowerment drive is significant. According to a study conducted by the Chinese University of Hong Kong, 98% of workshop participants know how to allocate money on expenses and savings every month; likewise, 98% have become better at talking openly about money with their family and include them in their financial planning. 

“Our aim is to let MDWs learn how to be financially resilient. To focus on their goals, not only for their family, but also for themselves,” Maya concludes. 

Financial and empowerment education is a life-changing solution, which can create a mutually beneficial employment relationship.

Enrich workshops:

• Money Wise Migrants: An introduction to personal finance, tailor-made for migrant domestic workers
• Setting up my Business: An introduction to entrepreneurship for domestic workers who are planning to start a business
• Growing my Money: Explore the basics of investment concepts, tools, and instruments
• Money and Family: Learn how to balance the needs of your family, yourself and your future
• Speak Up: A fun, hands-on introduction to the principles of confident communication

Enrich workshops:

In 2023, Enrich, in collaboration with HelperChoice and HKU, conducted a survey of MDWs. Below are some of the key findings of the survey.

• Recruitment agency fees are the primary source of debt amongst MDWs
• Over 30% of Filipino respondents have paid 1-3 months’ salary in agency fees for their first job, while 43% of Indonesian respondents have paid 3-6 months’ salary for their first job
• Over half (55%) of Filipino workers surveyed borrow from family and friends to pay for recruitment-related fees and costs of their migration, while 79% of Indonesian workers pay through salary deduction