Managing finances can be challenging, especially for first-generation Americans who often juggle cultural expectations alongside their financial goals. These individuals frequently find themselves supporting their families while trying to establish their own financial stability. A recent study revealed that many first-generation Americans allocate an astonishing 25% of their income to assist their families.
Gigi Gonzalez encountered this conflict firsthand while trying to improve her financial literacy. She realized that the advice available didn’t resonate with her personal experiences or values. In 2020, she took to TikTok as @thefirstgenmentor to share her journey and connect with fellow first-generation Latinx individuals facing similar dilemmas. Today, she boasts over two hundred thousand followers and authored a book titled: Cultura and Cash: Lessons from the First Gen Mentor for Managing Finances and Cultural Expectations.
According to Gonzalez, first-generation Americans require tailored financial guidance since traditional knowledge often doesn’t get passed down from their parents. “My parents focused on basic survival—keeping the lights on and food available. Building wealth wasn’t a priority,” she shares. “Their distrust of financial systems in their home country makes them skeptical here, despite the more regulated nature of our systems.”
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When Gigi established financial boundaries with her family, she faced cultural pushback. In many Latino households, saying 'no' to family financial requests is often perceived as disrespectful. “In our culture, the only acceptable reply is yes. Anything else—like maybe or not right now—can come off as ungratefulness,” she explains.
To address this, she developed a framework called “Quiero y pedo,” meaning “I want to, and I can.” This approach helps individuals assess their capacity to lend financial support. The first step is to ask, do you want to help? Are you motivated by genuine desire or guilt? Next, consider if you can: “Puedes? Evaluate your financial health. Do you have savings for emergencies?” Gonzalez emphasizes that if monetary assistance isn’t feasible, offering time or resources is also valuable. It’s crucial to balance personal needs while supporting family when it feels right.
In our Mailbag segment, we discuss investment strategies for young children and a listener contemplating a loan to cover mortgage costs due to limited retirement savings. This week’s news highlights the updated retirement savings target, optimal timing for selling a home, and steps to take if you owe the IRS.
