Introduction

From the toys we received as children to maybe even the first savings account our parents opened in our names, the foundation of our financial understanding and attitudes toward money is often laid during our childhood. For Asian Americans, our upbringing can be deeply influenced by cultural values, family expectations, and the immigrant experience, each playing a pivotal role in shaping our money mindset as adults.

“Growing up, my parents saved a lot of money. A big part of why they saved so much was to send it back to my grandparents in China, where culturally your children are almost seen as your ‘retirement fund.’ While my parents do have siblings who could also assist financially, they often took on the majority of financially supporting my retired grandparents since they weren't in the same country as their parents and couldn't support them as much physically, and earning American salaries meant their contributions went a lot further when they sent money home. While we didn't speak about it much growing up, I was very aware of the value of saving money, and the responsibilities you can fulfill with money.” (Kaitlin, Asian American working in the advertising industry)

The role of family and culture

In many of our households, the concept of financial responsibility is shared, though not always explicitly taught. Stories about sacrifice and resilience often highlight the importance of saving and thinking long term.

“I have always tried to save as much money as possible and not be a burden to my parents. I was afraid of causing financial issues for my family. I still have those thoughts when I make purchases, even if they are insignificant.” (David, Asian American working in healthcare industry)

Cultural values such as filial piety, the respect and care for one’s elders, further influence our financial decisions. It’s not uncommon for us to save money for our parents’ retirement or to contribute to our family's expenses, even at the cost of our own financial independence. This collective approach to finances, while fostering strong family bonds, also shapes our attitudes toward wealth accumulation, debt, and investment.

“Oftentimes your wealth is not completely yours. There is some guilt in not providing for the family that raised you. However, it should not be expected. I do not intend to raise my children with the idea of having them owe me anything.” (Kyle, Asian American working in healthcare industry)

The immigrant experience

For many of our families, the immigrant experience brings a unique perspective on money and financial security. The challenges of starting anew in a foreign country, often with limited resources, instill a deep appreciation for financial stability. This experience encourages a frugal lifestyle and a cautious approach to financial risk, which can be both a strength and a limitation. While it promotes savings and minimizes debt, it could also deter investment in the stock market or other higher-risk, higher-return opportunities. Our culture can heavily influence our financial decisions.

“You don’t need to save a lot in Japan because the government pays for most of it and the cost of retired living is much lower. But in the U.S. you need to start saving for retirement immediately. It’s a different mindset.” (Patty, Asian American working in the education industry)

“My parents don’t like debt. I think this is due to the scarcity mindset that a lot of them grew up with during the Cultural Revolution when many Chinese families were extremely poor. So many of my parents' friends (and my parents) came to the States in pursuit of a better life and the ‘American Dream,’ which was intertwined with building up wealth. I think for many of them, they worked and saved hard for what they have, and having debt almost feels like a personal failing.” (Nicole, Asian American)

Breaking the cycle and charting a new path

Understanding how our childhood shapes our money mindset is the first step toward financial empowerment. For Asian Americans, reconciling cultural and familial influences with the realities of personal finance in the U.S. is key to building a secure financial future. By acknowledging the strengths of our upbringing, such as the emphasis on savings and family support, and addressing areas for growth, like financial risk-taking and investment, we can develop a balanced and informed approach to money management.

As we navigate our financial journeys, let us honor the lessons of our past while embracing the opportunities of the present. By doing so, we pave the way for a future where financial security and prosperity are within reach for ourselves and the generations that follow.

Next steps

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Note: Names have been changed to maintain the privacy of our speakers.