As new immigrants take root in the United States, many face unfamiliar challenges. Among them are complex rules and regulations for finding housing, opening bank accounts and building credit. Navigating the financial system is important for immigrant families because a healthy credit score can help them rent apartments, buy cars and ultimately purchase homes in the future.
This article, written by NerdWallet, highlights research and resources to help new immigrants make smart personal finance moves that will set them up for success in their new home. These moves will also lay a foundation for long-term success that will benefit their families and communities.
While some newcomers have a wealth of financial resources, most do not. Four in ten immigrants say they are just able to pay their monthly bills and another one in six report having difficulty doing so. A common worldview motivates many immigrants from collectivist cultures to rely on the strength of family and community in times of hardship.
Despite this, the financial system often excludes some immigrant families and leaves them vulnerable to predatory actors who charge exorbitant fees or mislead them with in-language marketing and convenient access. As a result, newcomers can struggle to find adequate mortgages and save for retirement. They can also fall victim to fraudulent practices when they file taxes or work with a financial advisor. This can be especially challenging for those who have recently arrived and are learning English, but it is important to know how to protect yourself when you start working with a financial professional. new immigrant finance