What do we call money sent home from family members living abroad?

The term "remittances" specifically refers to the money that family members living in a foreign country send back to their home country. This financial transfer is often crucial for the economic support of the recipient family, contributing to household consumption, education, and health expenses. Remittances can significantly impact the economies of developing countries by providing funds for investment and improving living standards.

Foreign aid typically refers to assistance given by governments or organizations from one country to another, often to support development or humanitarian needs, but it does not involve personal transfers from individuals. Overseas investment involves capital invested in foreign assets or businesses, which is generally aimed at profit generation rather than direct support to individuals. International grants also pertain to funds provided by governments or organizations for specific projects or initiatives, rather than personal family support, and do not describe personal financial transfers like remittances do. Thus, remittances are distinctly characterized by the personal nature of their origin and purpose, making it the correct term in this context.