remittance

rih-MIT-uhnss /rɪˈmɪt.əns/
nounC1GRETOEFLIELTSUPSC
academicformalfinancial

A sum of money sent, especially by a migrant worker to their home country or family.

Specifically tied to cross-border or city-to-village transfers of earned wages sent home to support family.

The story behind the word. From Latin 'remittere' (to send back, release). The financial sense of sending money back home developed in trade and global labor markets during the 17th century.

Word relationships

  • transfer: Transfer is any movement of money, whereas remittance specifically refers to money sent back home by workers.

Commonly confused with

  • reimbursement: Reimbursement pays someone back for an expense incurred, while remittance is earnings sent to family.

Word family

  • remit (verb): To send money in payment or as a gift.

Collocations

  • remittance inflow
  • foreign remittance
  • send remittances

Example sentences

  • "Monthly remittance payments from urban factory workers provided vital capital for health and education back in rural villages." Economic development study

Memory hook

RE- (back) + MIT (send) = sending money BACK home. Money sent home.

When not to use

Do not use for commercial bank loans or standard business payments between companies.

Fun facts

  • Global remittances total over $800 billion annually, far exceeding total global foreign development aid.

Related words

migratory, agrarian

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