The remittances can be classified into four types including Family Remittances, Community Remittances, Migrant Worker Remittances, and Social Worker Remittances.
Family Remittances: It refers to remittances that are sent by individual immigrants working in foreign locations to their family, relatives or friends in their home country. These remittances are sent every month and they assist the families of the migrants to survive. These remittances also help poor families to fight against poverty. The family remittances are regarded as the major form of remittances across the world where millions of workers are working hard in distant land away from their home for earning their livelihood.
Community Remittances: It refers to the remittance that is sent by individual immigrants generally and also includes the remittance sent by various hometown associations to organizations and communities in their home country. This money has been used for the developmental activities of communities such as in building infrastructure, churches, parks, and roads. It also offers health care to the poor. Community remittances are also used for offering health benefits, education; and employment to big communities who need these facilities in the home countries.
Migrant worker Remittances – These remittances refers to the cash transfers done by migrant workers for sending the money to the families, friends, and relatives back home. The migrant worker remittances make up a large chunk of money inflows into the home country by the people who have migrated to foreign locations in the search of money, job or education.
Social Remittances – These remittances basically comprise of various ideas, practices, and social capital that make up the backbone of many remittances that flows from workers of one country to another. Thus social remittances assist the traditions and culture of one race or community, to socialize with the cultures and traditions of another community. Social Remittances help in the bonding of people and do not have money associated with them.