New immigrants and first-generation Americans face many challenges when it comes to personal finance, especially if they were born into poverty or arrived in the country with debt. Understanding basic personal finance concepts and practices can help these individuals set themselves up for financial success, both now and in the future.
Many new immigrants arrive in the United States with limited or no assets and need to establish credit, file taxes and acquire insurance. They may also have a responsibility to help friends and family back home, which can add additional pressures. Fortunately, there are many resources available to help them achieve financial wellness.
Some of these resources can be found online, while others are located in local communities. In general, communities with large immigrant populations tend to have more resources available. These can include a variety of support services, including legal and medical assistance and community groups.
Another common challenge is building a credit score, especially since newcomers are unable to transfer their credit history from their home countries. One way to overcome this is by using a secured card and paying off the balance in full each month.
Saving for the long term is also important, and a savings account can be a good option for newcomers. Some of the most popular options in Canada are the Registered Retirement Savings Plan (RRSP) and the Tax-Free Savings Account (TFSA). When choosing a financial advisor, it’s important to choose someone who is knowledgeable about investing and has valid credentials. Often, new immigrants prefer to choose a financial advisor who speaks their native language, but it is critical to research their credentials and track record before hiring. new immigrant finance