How First-Generation Americans Navigate Finance

The State of Immigrant Finances in America

As of 2022, the Hispanic population of the United States reached 63.7 million, making it the largest ethnic and racial minority in the country. Roughly one in three Hispanic people is a first-generation immigrant, and many are navigating the American financial system for the very first time.

For first-generation Americans, managing money rarely stops at their own household. Nearly half support family members in their country of origin as well as themselves, stretching every paycheck across borders. At the same time, many immigrants lean on U.S.-born children or relatives to help interpret an unfamiliar financial system - from opening bank accounts to understanding how credit scores work.

That combination of new rules, multigenerational responsibility, and cross-border commitments shapes how first-generation Americans think about saving, borrowing, and building long-term wealth.

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Learning to Accept Debt

One of the biggest differences between the U.S. financial system and many others around the world is how debt is viewed and used.

In the United States, most people carry some form of debt - whether it is a mortgage, car loan, student loan, or credit card. The credit system is built around showing you can take on debt and manage it responsibly, not around avoiding debt altogether.

In many other countries, it is more common to:

• Favor cash over credit;
• Avoid debt whenever possible;
• Treat even small amounts of debt as something to pay off as quickly as you can.

Most immigrants arrive in the U.S. as “credit invisible” in American terms, even if they had strong financial histories in their home countries. Their existing track record usually does not transfer into the U.S. system, which can make it harder to:

• Qualify for apartments, car loans, or credit cards;
• Access favorable interest rates;
• Work toward milestones like homeownership.

To build wealth in the U.S., you generally need to establish a credit history with the three major credit bureaus - Equifax, Experian, and TransUnion - then show over time that you can borrow and repay responsibly. But to borrow at a lower cost, you usually need a credit history in the first place.

First-generation immigrants are finding creative ways to navigate this “chicken-and-egg” problem, including:

• Financial education resources such as Freddie Mac CreditSmart® or the Center for First-generation Student Success, which offer free guides on the U.S. credit system and money management;
• Secured credit cards, which require a refundable security deposit and can be easier to qualify for when you have limited history;

Rent reporting services like Esusu can help eligible renters establish and build credit using on-time rent payments, without taking on new debt just to get started. To date, Esusu has already helped more than 270,000 renters establish a credit score for the first time.

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Forging a New Financial Future

Despite the extra hurdles they face, first-generation Americans are building strong financial foundations - and reshaping the broader financial story of the United States.

In a 2023 survey by The Motley Fool, nearly 70% of first-generation Americans said they had enough savings to cover at least three months of expenses, compared with about 22% of the general population reporting similar savings. That level of preparation can make the difference between a setback and a financial crisis.

The same survey found that about 70% of children of immigrants described their parents as at least somewhat knowledgeable about finances. Even when parents are still learning the U.S. system themselves, they are often teaching their children what they know about budgeting, saving, and staying out of high-cost debt.

While first-generation Americans may encounter more barriers than other groups - from language differences to documentation requirements - access to high-quality financial education and practical tools can help close those gaps and unlock long-term stability.

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Need More Resources?

Esusu believes that everyone deserves the opportunity to be financially secure, regardless of race, immigration status, or where their financial journey started.

If you live in a property that works with Esusu, you can:

• Explore the Esusu Renters Marketplace for curated financial resources and offers designed to help renters save money and strengthen their financial health;
• Create an account through the Esusu Resident Portal at home.esusurent.com/signup to see how rent reporting is contributing to your credit journey, track your credit score over time, and access renter tools available through your community;
• Follow Esusu on Instagram at @myesusu for credit tips, renter education, and stories from communities across the country.

Wherever you are coming from, and wherever you are going, your financial future can be built - step by step, decision by decision.