When it comes to money, many of us can probably recall a lesson or two from school, maybe about budgeting or saving. But let’s be honest—most of the important financial knowledge needed to navigate life wasn’t covered in the typical classroom setting. For families from culturally diverse backgrounds, the financial landscape can feel even more complex, with different cultural attitudes toward money, savings, and investing.
In this guide, we’ll explore some essential financial concepts that schools often overlook, with a focus on how they impact culturally diverse families in the U.S. Whether you’ve grown up in a family where financial conversations were avoided or where money was handled in unique ways based on cultural values, these insights will help you gain a stronger understanding of money and how to manage it effectively.
Money Management Starts at Home
One of the most important lessons schools don’t teach is that money management isn’t just about what you learn in textbooks—it’s something that starts at home. Families from diverse cultures often have rich traditions and values around money, but they might not always align with mainstream American financial practices. For instance, in some cultures, there is a strong emphasis on collective family wealth and shared financial responsibilities. In others, money is a private matter, not discussed openly.
In many cases, families might have to adapt their financial practices to fit into the broader American system, where individualism is more common, and personal credit scores and individual savings accounts are prioritized. However, integrating the best of both worlds—drawing from cultural values while adopting practical American financial tools—can create a more sustainable and well-rounded approach to money.
Start by having open conversations with your family about money. Talk about your cultural perspective on wealth, savings, and spending, and discuss how it relates to your goals in the U.S. This can be an opportunity to blend traditional wisdom with modern money management strategies, such as saving for retirement or understanding taxes, which might not be as intuitive in some cultures.
Understanding Credit and Building Wealth
In the U.S., credit is a huge part of the financial system. Schools may teach you about credit cards in theory, but they don’t necessarily equip you with the tools needed to manage credit wisely or build a strong credit score. For culturally diverse families, the concept of credit can be especially confusing. Many cultures don’t have a direct equivalent to the credit system, making it harder for newcomers to the country to understand how things like credit scores, loans, and interest work.
Building credit is one of the most important steps toward financial stability in the U.S. Having a good credit score can impact your ability to buy a house, lease a car, or even get a job. Schools rarely dive into this topic deeply, and yet, understanding how to build and maintain good credit can help your family achieve long-term financial goals.
To build credit, start by getting a secured credit card or becoming an authorized user on a family member’s account. Make small, regular purchases and always pay them off in full. Over time, this will help you establish a positive credit history. In addition, pay close attention to the interest rates, fees, and terms associated with different financial products. A strong credit history can open doors to opportunities such as buying a home or starting a business—important milestones for many culturally diverse families who may be looking to settle and build wealth.
Navigating the U.S. Financial System as a Family
The financial system in the U.S. can be overwhelming, especially for families who may not have grown up here or aren’t familiar with the nuances of the system. Schools typically don’t teach how to navigate student loans, taxes, or how to budget effectively as a family. These are the kind of skills that need to be learned outside the classroom. For families from different cultural backgrounds, understanding these systems is crucial, especially when starting to build a future in the U.S.
Start by understanding the basics of taxes. In the U.S., income taxes can seem complicated, and the forms are full of jargon. However, learning how the tax system works will empower you to make smart financial decisions, like how to take advantage of tax deductions or plan for future expenses. Look for free community workshops or online resources to get more familiar with filing taxes, or even seek the help of a professional when needed.
Budgeting is another essential skill that schools often overlook. Creating a family budget helps ensure that everyone in the household understands how money is being spent and saved. In many cultures, financial decision-making is communal, and creating a family budget can be a great way to bring that tradition into the American financial landscape. Online tools like budgeting apps or even pen and paper can help everyone stay on track.
Additionally, saving for emergencies and retirement is a key concept that often gets glossed over in school. The reality is that without proper savings, families can find themselves struggling when unexpected expenses arise. Teach your children the value of saving early on by setting up a savings account and involving them in the process. For retirement, look into 401(k)s or IRAs and start contributing as early as possible to take advantage of compound interest.
Final Thoughts
The reality is, schools don’t teach enough about money. For culturally diverse families, there’s an added layer of complexity when it comes to adapting to the American financial system. However, by combining your cultural values with practical, modern financial tools, you can set your family on a path to long-term financial security. Talk about money, build your credit, and make sure you understand the basics of taxes, budgeting, and savings. With these financial strategies in hand, your family can thrive in the U.S. and beyond.