Welcome to BW’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Understand how first-gen Americans can achieve financial success with tips for balancing cultural obligations and wealth-building strategies.
How can first-generation Americans grow their wealth and protect their money? How can you set financial boundaries with family and friends while staying committed to your long-term financial goals? Hosts Sean Pyles and Kim Palmer discuss the unique financial challenges faced by first-generation Americans and immigrant families to help you understand strategies for achieving financial independence. They begin with a discussion of tips and tricks on managing dual financial pressures of supporting oneself and one’s parents and breaking cycles of poverty through self-compassion and financial education.
Jannese Torres, host of the personal finance podcast
Yo Quiero Dinero
, joins Kim to discuss the importance of building a strong financial support network tailored to individual needs. They discuss strategies for identifying trustworthy financial advisors, setting and maintaining financial boundaries with family and friends, and gracefully declining costly invitations in favor of ensuring long-term financial success. This episode is essential listening for anyone navigating cultural and familial obligations while striving for financial independence.
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Episode transcript
This transcript was generated from podcast audio by an AI tool.
Welcome to BW’s Smart Money podcast. I’m Sean Pyles.
On Smart Money, we are all about answering your money questions, and today we’re tackling an important one: How can first-generation Americans grow their wealth and protect their money? Kim, in her role as the host of our regular book club series, is here to guide the conversation. So Kim, who are you talking with?
I am speaking with Jannese Torres, author of the new book,
Financially Lit!: The Modern Latina’s Guide to Level Up Your Dinero & Become Financially Poderosa
. She is also the host of the personal finance podcast
Yo Quiero Dinero
, and we are joined by my fellow Nerd Melissa Lambarena, a writer on the credit cards team, who also serves as an English and Spanish language spokesperson here at BW.
Sounds great. Well, I will let you all take things from here.
Great. Thank you. Jannese, thank you so much for joining Melissa and me today.
Thank you so much for having me. Excited to be here.
Let’s start with what’s unique about money for first-generation Americans and immigrant families. You write about how money is often not talked about, for example. Can you share some of those financial challenges that first-generation Americans often face?
Absolutely. So I think at its core, it can start with something as simple as the language barrier. For many first-gen kids, we could be the family translators, oftentimes in financial situations. And so it’s not uncommon for us to take on the responsibility of helping our parents file their tax returns, navigate balancing a checkbook, or any number of other financial tasks that, for folks who can speak English, it’s just so much easier to do that.
So that’s one thing. But then I think there’s a lot of, maybe I would call them cultural nuances, that make the financial industry and
first-gen communities
kind of be at odds in a way. And I think some of that comes from the fact that there is this lack of culturally competent education and information oftentimes. It’s really even really hard to find alternate language content from a banking institution or a financial institution.
And also, there’s a lot of trauma associated with finances, especially if your parents have come from another country where maybe the economic situation is not as stable. There’s a big mistrust of financial institutions. So a lot of those things can compound in a way that make us very fearful of money and also the institutions that control it.
I can definitely relate to that as a first-generation American, having to help my parents with a lot of these, figuring out different documents and a lot of these financial questions. Another thing that impacts us is that we might have to save for our own future, but also support parents who lack retirement savings in the present. And this is something that you talk about in your book. What do you see or want for people who find themselves in this situation?
Well, I think first off, it requires a lot of self-compassion because what I find is there can be a lot of resentment and frustration amongst first-gen kids who feel like, well, why didn’t mom and dad do better? And it’s like we have to have the context and understand that they couldn’t do what they didn’t know. It’s not like financial literacy information is pervasive regardless of where you’re from, but especially when you’re from an immigrant community.
And so I like to refer to the oxygen mask analogy, for especially first-gen kids, because at the end of the day, the foundation that you are building as a wealth builder is only going to be as stable as you make it.
If you stretch yourself too thin or constantly put others before yourself at the expense of your own future, you’ll perpetuate a cycle of poverty and struggle. It’s important to prioritize your own financial stability and have conversations early if you know you’ll need to financially support someone. This is especially crucial for communities of color who often have multigenerational financial goals. Many mainstream personal finance resources lack cultural context and fail to address financial trauma, which can hinder progress on financial goals. Understanding your money beliefs and addressing mental health issues are essential steps in changing your financial narrative. Conversations around mental health and money are becoming more prevalent, but there is still stigma, particularly in communities of color. Normalizing these conversations can help people feel less alone and more open about their struggles. Building multiple income streams, like through a side hustle, can provide financial security and stability, especially during unexpected job losses or economic downturns. Even though I pursued a degree and entered the workforce with hopes of finding stability, I quickly realized that layoffs were common, even for employees with decades of loyalty. This realization led me to diversify my income streams, especially after experiencing a layoff myself in 2014. I delved into content creation and entrepreneurship, learning about affiliate marketing and brand partnerships to turn my blog into a business. This journey opened my eyes to the power of creating multiple income streams based on your skills and ideas.
I encourage others to explore their skills and turn them into side hustles to supplement their income and build financial security. By creating additional income streams, you can pay off debts, save, and potentially transition into a new career. This sense of financial independence is empowering and provides a safety net in case of job loss.
For those who prefer to keep their full-time job, there are various options to create multiple income streams, such as investing in dividend stocks, real estate, or starting a side business. It’s essential not to rely solely on one source of income, especially in uncertain times. Building emergency funds and creating a support network of financial professionals can provide guidance and support in making important financial decisions. It is important to realize that you don’t have to navigate everything on your own, and in many cases, it’s best not to. For example, when I needed to create an estate plan, I didn’t feel comfortable relying on a DIY template, so I sought out an estate planning attorney for guidance. It’s essential to know that there are professionals out there who can assist you with these complex matters, alleviating the pressure of figuring it out solo.
When seeking advice or building a support network, it can be challenging to know whom to trust, especially with the abundance of information available online. I believe in the principle of “trust but verify,” meaning it’s crucial to diversify your sources of information and thoroughly research individuals or professionals before relying on their guidance. Look for certifications, referrals, and reviews to ensure credibility and reliability.
Setting boundaries around money and garnering support for your financial goals can be challenging, especially when family members or friends may not understand or support your objectives. It’s important to create your own community of support and seek like-minded individuals who align with your goals. Be prepared to have difficult conversations and stand firm in your values, even if it means potentially offending someone. Keeping a long-term perspective can help you stay focused on your financial objectives and ultimately achieve your goals. I selected a few key points to highlight. First, let’s discuss the importance of practicing your salary negotiation script. Negotiation is a skill that requires practice and honing, just like a muscle. Starting with small negotiations, such as lowering interest rates or negotiating streaming service prices, can build confidence for bigger negotiations like salary or car purchases.
Secondly, the 50/30/20 budgeting rule is a useful guideline for managing fixed expenses, variable expenses, and savings goals. While the percentages may vary based on location, it provides a good starting point for budgeting. It’s essential to tailor the budget to individual needs and circumstances.
Lastly, creating sinking funds involves setting aside money for specific purposes, such as emergencies, home purchases, or vacations. This approach helps track progress towards financial goals and ensures that funds are allocated for specific purposes, rather than being pooled together aimlessly.
Overall, personal finance is a continuous learning journey that requires ongoing education and adaptation. It’s essential to keep learning, growing, and applying new knowledge to achieve financial stability.
Disclaimer
This nerdy information is presented for general educational and entertainment purposes only and may not be applicable to your specific situation.
With that being said, we hope you enjoyed the content and stay tuned for more from the Nerds.
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Original: The cat sat on the mat.”
Revised: The feline perched upon the woven rug. sentence: Please be sure to read the instructions carefully before starting the experiment.