Finance tips you should know if you're new in the US
Starting a new life as an immigrant, tourist or visitor in the United States can be overwhelming especially when it comes to dealing with your finances and understanding how the financial system works.
This is why we’ve written a detailed guide to help you navigate this new country even faster.
In this post, we’ll be sharing finance tips that will be crucial for settling in the United States. Keep reading to find out more.
7 finance tips for immigrants in the US
Here are the top finance tips to help you settle in the US and build a strong financial foundation over the next years;
Open a US bank to get familiar with the US banking system
The first step is opening a bank account. Now while the US is notorious for using transfer services like Paypal and Zelle, you also need a traditional bank for important transactions and to build your credit.
So you want to look for a bank that offers FDIC or NCUA insurance to protect your deposits and a debit card for easier access to your finances.
You should also compare fees and choose a bank with low account maintenance fees. If English isn’t your first language, some banks offer services in multiple languages so you might want to check if this is available in your preferred option as well.
Start building your credit history from day one
Credit history plays a significant role in your financial life in the US. It determines your eligibility for loans, credit cards, and even apartment renting.
Since it takes time, we encourage you to start the process as soon as you get into the country.
You can start building your credit by applying for a secure credit card or becoming an authorized user of someone’s established credit card.
We often recommend going for the former as it only reflects your actions. So as long as you pay your bills on time, you can establish a good credit history.
Use budgeting apps and prioritize saving
Understanding where your money goes is crucial for smart financial planning. It can help you understand what expenses to cut down on or what to channel your income towards.
You can choose to either use budgeting apps available in your region or create a simple spreadsheet to track income and expenses.
Saving is always going to be a wise financial decision, especially in a new country. So aim to save a portion of your income every month immediately you start earning.
Start small even with 5-10% of your income and gradually increase it as your financial situation allows.
You should also have an emergency fund for unexpected expenses like car repairs or medical bills. Ideally, your emergency fund should be between 3-6 months of your living expenses.
Learn how to do your taxes
Tax returns are a big deal especially since it’s a way to get back money from automatic deductions on your accounts.
So, immediately you get into the US, register for your Social Security Number. If you are not eligible for this yet, get an Individual Taxpayer Identification Number. This way you can file tax returns even if you’re not eligible to work yet.
It’s also important to learn about US tax laws. Understand how the tax brackets, deductions and credits can help you maximize your refund.
We strongly recommend speaking to a professional or at least someone who’s living in the country for more personalized advice.
Get a reliable money transfer service
If you’ll be sending money home frequently, you need an affordable and reliable way to do this.
We generally encourage you to compare factors like the exchange rates, delivery speed and transfer rates before choosing a provider.
After comparing this, we discovered that Ohentpay is the best money transfer service for immigrants.
This is because, you can send money to over 190 countries across the world, at the best rates. Your recipients will also get the money within minutes. Learn more about how it works here.
Take advantage of financial resources and support
Fortunately, there are many resources available to help you get quality financial advice and save money while at it.
For example, many non-profit organisations offer free financial counselling and educational workshops for immigrants. We recommend researching for those in your area and registering with them.
For students, many attractions and stores offer student discounts. So always ask to capitalize on these savings.
Beware of scams
Unfortunately, scams targeting immigrants are common so please be wary of unsolicited offers for financial products or services.
Never share your personal information or financial details readily - either over the phone, via text or through websites.
Also, review whatever website you’re using for purchases and shopping. Don’t enter your card details in just any store.
Remember, building a secure financial future in the US takes time and planning. By simply following these tips above, you’re sure to build a strong foundation in this new country.
