Month: April 2016

Insurance is a Relatively New Concept to Most Immigrants

Insurance is a Hard Concept for People Who Have Lived without It The concept of insuring yourself against loss is very much a part of the financial culture in the U.S. We insure our homes, autos, health and life. But the financial concept of financial indemnification sometimes is foreign to many immigrants. Hispanics have not purchased primary insurance protection to the same degree as have others in the U.S. For example, in Mexico, if your home is damaged there might be some insurance, but often repair costs are much less and these expenses are simply paid out-of-pocket. Watch the...

Read More

Many U.S. Immigrants Invest in their Country of Origin

Some Immigrants Maintaining Economic Ties to Their Families As an immigrant, it can be difficult to completely sever ties to your family, friends and country. Some maintain business relationships and homes as second residences, often as an alternative plan if life in the U.S. doesn’t work out. But it’s not easy. The currency exchange between pesos and dollars can have a significant impact on family finances while maintaining two locations. The reserve currency of the world is still the U.S. dollar. Yes we’ve printed money, kept interest rates artificially low and rolled up a debt of nearly $20 trillion,...

Read More

Most U.S. Immigrants Are Debt Averse

Central American and Mexican Immigrants Don’t Like Debt No one likes debt except some savvy investors who like to leverage their assets by utilizing their debt. For most Americans, debt has been a curse that destroys equity built over time. But for many immigrants, debt is indentured economic slavery, so they’ve come to America with a strong debt aversion. Many middle-class and upper-middle-class Hispanics have an aversion to any type of debt. In Latin American countries, credit is not as readily available as in the U.S. and is generally much more expensive, so people typically save in advance for...

Read More

Family First, Money Second in the Hispanic Community

Strong Family Ties Are Central to Their Economic Prosperity The baby boomers changed many cultural traditions during the last 40 years, one worthy change of note: divorce. There is no one societal factor that has impacted the economy of the family more than divorce. In contrast, the Hispanic community is extraordinarily family-centric. This singular cultural component, if sustained, will have significant economic impact for the Hispanic community in the future. Most immigrant families are closely knit together with a bond that has been forged through several generations. One of the curious aspects of family-centric thinking here is the family...

Read More

The Pursuit of Economic Prosperity in America Is a Magnet

Coming to America Is Based of the Freedom of Self-Determination Coming to America is the quest for freedom, the pursuit of happiness and self-determination. All of which are tied to the economic possibilities America offers. The potential for financial prosperity is magnetic and that’s what attracting various groups from south of the border. But their approaches to money are often altered when they come to a free-market society. There are several factors that make up to your “psychonomic” profile. The economic culture of the country you live in can have a significant impact on your approach to money. Most...

Read More