This paper examines the impact of exchange rate shocks experienced by overseas Filipino workers on their origin households in the Philippines. The 1997 Asian financial crisis led to sudden and heterogeneous changes in exchange rates for Filipino workers in various countries, with some currencies appreciating significantly against the Philippine peso. The paper finds that an appreciation of a migrant's currency against the Philippine peso leads to an increase in household remittances, with an estimated elasticity of 0.60. These positive income shocks result in enhanced human capital accumulation and entrepreneurship in migrants' origin households. Specifically, child schooling and educational expenditure rise, while child labor falls. Households also increase hours worked in self-employment and are more likely to start capital-intensive household enterprises. The paper controls for potential confounding factors and argues that the exchange rate shocks are transitory, as most migrants are temporary workers who will eventually return to the Philippines. The findings contribute to understanding how households in developing countries respond to unexpected economic shocks.This paper examines the impact of exchange rate shocks experienced by overseas Filipino workers on their origin households in the Philippines. The 1997 Asian financial crisis led to sudden and heterogeneous changes in exchange rates for Filipino workers in various countries, with some currencies appreciating significantly against the Philippine peso. The paper finds that an appreciation of a migrant's currency against the Philippine peso leads to an increase in household remittances, with an estimated elasticity of 0.60. These positive income shocks result in enhanced human capital accumulation and entrepreneurship in migrants' origin households. Specifically, child schooling and educational expenditure rise, while child labor falls. Households also increase hours worked in self-employment and are more likely to start capital-intensive household enterprises. The paper controls for potential confounding factors and argues that the exchange rate shocks are transitory, as most migrants are temporary workers who will eventually return to the Philippines. The findings contribute to understanding how households in developing countries respond to unexpected economic shocks.