As a second-generation Asian American, you may have grown up with certain beliefs about money that are different from those of your American-born peers. These beliefs may have been passed down from your parents or grandparents, and they may be based on the values of your home country.
While these beliefs may have served you well in the past, they may not be as helpful in the American financial landscape. Here are some of the challenges that first-generation Asian Americans may face when it comes to managing finances. The hope is to eventually have separate blogs in the near future that go into detail about these challenges.
Challenges
- The importance of saving face. In many Asian cultures, there is a strong emphasis on saving face. This means avoiding doing anything that could bring shame or embarrassment to oneself or one’s family. This can sometimes lead to people making financial decisions that are not in their best interests, such as taking on debt to maintain a certain lifestyle. Read More
- The need to belong. Very similar to the saving face above. Many Asian cultures value status and material items. While it’s okay to pamper oneself with expensive items and experiences (if that truly is your passion and makes you happy), I believe everyone needs to have a balance. Read More
- The belief that investing is risky. Many Asian cultures have a long history of investing in real estate, which is seen as a safe and reliable investment. However, the stock market can be a great way to grow your money over time, and it is important to learn about the risks and rewards of investing. Overemphasis on Saving Without Investing: While saving money is important, solely relying on saving accounts or keeping money idle can limit potential growth. Adopting a mindset shift towards understanding and exploring investment opportunities, such as stocks, bonds, mutual funds, or real estate, can help build long-term wealth. Read More
- The expectation of supporting family back home. It is common for first-generation Asian Americans to feel a strong sense of obligation to support their families back home. This can be a financial burden, especially if you are also trying to support yourself and your own family. It is important to set boundaries and make sure that you are not overextending yourself financially. Read More
- The belief that saving money is more important than spending money. While saving money is important, it’s also important to find a balance between saving and spending on things that bring you joy and fulfillment. Set aside a portion of your income for savings and investments, but also allocate some funds for experiences and activities that enhance your well-being.
- The belief that you should always put your family first, even if it means sacrificing your own needs. While it is important to be supportive of your family, it is also important to take care of yourself. If you are always putting your family first, you may end up feeling resentful and burned out.
- The belief that you should never ask for help. Asking for help can be seen as a sign of weakness in some cultures. However, there is no shame in asking for help when you need it. In fact, it can be a sign of strength.
- The belief that you should always work hard and never take a break. While hard work is important, it is also important to take breaks. If you are always working, you may end up getting sick or burned out.
- Couples don’t talk more about money and set goals together. I don’t believe this is just an Asian culture thing. I actually think this happens in all relationships. Money is the top subject that couples argue about. People’s finances rank the number 1 stress in life.
- Dishwashers are used for dirty dishes?? Kidding…. not really
Managing finances as a first or second generation Asian American in the United States is a delicate balancing act between honoring our cultural upbringing and adapting to the opportunities and challenges of a new country. By embracing our cultural values of hard work and frugality while also educating ourselves about the US financial system, we can navigate the challenges we face. With open communication, careful planning, and a supportive community, we can achieve financial success while staying true to our heritage and aspirations. Remember, it’s a journey of continuous learning and growth, and by embracing change, we can create a solid foundation for a prosperous future.
