A remittance is money that someone sends to another person, usually to family members living far away. When a worker in one country sends part of their paycheck home to help support their parents or siblings in another country, that payment is a remittance.

The word comes from the idea of “sending back” or “transmitting” money. Imagine a college student working a summer job in California who sends money to help their younger brother back home in Texas buy school supplies. That's a remittance, though the word is most commonly used for money sent across international borders.

Remittances play an enormous role in the global economy. Millions of people work in countries far from where they grew up, and they regularly send portions of their earnings back home. These payments help families pay for food, housing, education, and medical care. In some countries, remittances from workers abroad make up a significant part of the national economy.

People send remittances through banks, special money transfer services, or digital apps. A construction worker in Dubai might send a remittance to his family in India every month. A nurse working in New York might send remittances to support her parents in the Philippines. These payments represent both financial support and a powerful connection between people separated by distance.