Poverty Among Immigrants in the USA: 5 Main Reasons

Let’s agree that all people are different—some live life to the fullest, striving to achieve the maximum and get everything possible out of life, while others lead a more standard life, as they say, “go with the flow,” and are content with what they already have.

People are different, and the main thing is to live in a way that makes you comfortable.

America offers many opportunities due to its diversity, tolerance, and respect for knowledge and hard work.

By observing newcomers, we can identify five main reasons why they struggle to get on their feet quickly. They are held back by old habits, beliefs, and various fears.

Here are the five main problems immigrants face that drag them into financial hardship:

1. The belief that “money grows on trees” in the USA

The U.S. film industry has painted a picture of a beautiful life, and many come to America for this dream, not realizing that money won’t just fall into their hands.

In the USA, you have to work hard, just like anywhere else, and maybe even harder.

This country values those who achieve their goals, those who don’t give up after the first setback, and those who keep trying again and again.

2. The habits and mindset of poor people

One such habit is the tendency to “look rich rather than be rich.”

This harmful desire drives people to buy things they can’t afford, spending too much without building a financial safety net. As a result, they quickly find themselves in debt.

The first thing to do is to stop thinking that buying expensive branded items will make you wealthier. Start by organizing your income first.

3. Excessive frugality

While some people spend everything on brands, others, arriving in the U.S. and not wanting to spend too much, go to the other extreme by being overly frugal. They often buy cheap, low-quality goods, avoid getting insurance or choose a cheap, disadvantageous insurance package, and rent housing in areas that may not seem very safe.

4. Trying to play by different rules

Many immigrants think they can outsmart the financial system. For example, they don’t want to get a credit card and don’t work on building their credit score.

A credit score helps banks determine whether you are trustworthy. Without a score, the bank may not be able to approve you for a mortgage, for example. A good credit score opens up many opportunities.

We recommend getting a credit card and learning to use it wisely to build a good credit score faster, which will allow you to rent decent housing, get a car, and buy a home—if that’s part of your plans, of course.

5. Lack of legalization

We know that many people live in the U.S. for a long time without legal status. This means they entered as tourists or students and didn’t take further steps toward legalization. After their visa expired, they didn’t renew their status or switch to a new one.

Yes, many people live this way, but it’s illegal and makes life much more difficult. A person without status often finds it hard to get a well-paying job, decent housing, daycare for their child, or afford quality food and entertainment.

Additionally, it leads to extra expenses for legal services in case immigration authorities become involved.

We suggest avoiding unnecessary stress. After spending some time in the U.S. while your legal visa is still valid, visit a law firm to start the process of transitioning to a new status. This is a very sensible move that will save time and nerves.

Find a balance, think about your safety and the quality of your food, so that one day you don’t end up overspending on medical and legal services.