Remittances are vital in Mexico, exerting considerable influence on household income, consumption patterns, and overall socio-economic de- velopment. On the other hand, the evidence indicates that government spending on social policies has an inverse effect in some countries where remittances are the main component of household income. Furthermore, these households have the lowest level of education per capita, and food and entertainment are the main components of household spending. We introduce a model that proves that remittances can either be a poverty trap or an incentive for economic growth under certain fiscal policy con- ditions.