Ep. 170 - UNLOCK FINANCIAL WELLNESS WITH CULTURAL INSIGHTS

In this episode of the Merging Life and Money Show, host and financial wellness strategist Marie-Jo Caesar discusses the profound impact of cultural backgrounds on financial behaviors and mental well-being. Building on the previous discussion about generational wealth and healing, this episode explores how cultural attitudes shape financial lives and offers strategies to balance cultural expectations with personal financial goals. Marie-Jo covers cultural-specific financial attitudes across various minority communities, provides actionable strategies for overcoming financial pressures, and suggests culturally relevant approaches for comprehensive financial wellness. The episode concludes with the importance of integrating cultural strengths into financial planning and offers a free resource to support financial and mental clarity.

THE THREE MAIN POINTS OF THE PODCAST ARE:

❇️Cultural Influence on Financial Behavior and Mental Well-being

Explore how cultural background shapes financial habits and mental well-being, focusing on beliefs like family support, education, and communal wealth.

❇️Balancing Cultural Expectations with Personal Financial Goals

Learn strategies for balancing cultural expectations with personal financial goals, including communication, education, and setting financial boundaries.

❇️Culturally Competent Financial Education and Strategies

Discover the need for culturally competent financial education, advocating for culture-specific planning and training for financial professionals in cultural competency.

Click this link https://mariejocaesar.com/mentalhealth-journal to download your Mental Health and Money Journal Prompts.

THE KEY MOMENTS IN THIS EPISODE ARE:

00:03 Cultural Support, Family Bonds, Financial Pressures

04:13 Native American Wealth and Exploitation Concerns

08:12 Adapting Cultural and Financial Attitudes

12:27 Cultural Influences on Financial Decisions

18:07 Emergency Fund Building and Boundaries

21:44 Support Through Cultural Connections and Therapy

23:20 Aligning Cultural Values with Financial Goals

30:10 Partnering for Financial Education Programs

31:38 Training Financial Professionals in Cultural Competency

34:57 Combating Systemic Discrimination with Diverse Approaches

38:35 Cultural Strength for Fina

Chapters

• 0:03 Introduction to Cultural Financial Wellness
• 1:40 Understanding Cultural Financial Attitudes
• 10:22 Balancing Cultural Expectations with Financial Goals
• 25:35 Culture-Specific Approaches to Financial Wellness
• 38:04 Conclusion and Next Steps

Transcript

Ep. 170 - TRANSFORMING CULTURAL HERITAGE INTO FINANCIAL WELLNESS - HOLISTIC FINANCIAL STRATEGIES FOR MINORITIES

Hello and welcome to the Merging Life and Money Show. Last week, we began our special series for National Minority Mental Health Awareness Month, Exploring Generational Wealth and Healing. Today, we will expand on that foundation by examining how our cultural backgrounds shape our financial lives. I am Marie-Jo Caesar, your host and financial wellness strategist. 

Have you ever wondered if your cultural heritage is just about traditions and customs? Well, it is a powerful force influencing your relationship with money and mental well-being. As a financial wellness strategist, I have observed how cultural beliefs can either propel us forward or hold us back financially. 

We will explore how to transform your cultural background into a financial superpower tonight. We will discuss balancing cultural expectations with personal financial goals and examine culture-specific approaches to holistic financial wellness. 

By the end of this episode, you will have practical strategies for breaking these barriers and building a healthier, more prosperous life.

Welcome to the Merging Life and Money Show. 

Now that we have established the foundation for our discussion let's address our first main point. Understanding cultural and financial attitudes. Our cultural background forms our perspective on the world, including our beliefs about money. These deeply rooted attitudes significantly influence our financial behaviors and, ultimately, our financial well-being. By studying this cultural and financial attitude, we can comprehend their impact and learn how to use them to our advantage. 

We will start by examining common financial beliefs in various minority cultures because it is essential to note that while we discuss general trends, individual experiences may differ.

In many African American communities, there's a strong emphasis on providing support to extended family members. This value of communal support has roots in African traditions and was strengthened during times of slavery and segregation when mutual aid was essential for survival. While this sense of duty can foster strong family bonds, it can also create financial pressure if not managed wisely.

Hispanic cultures often prioritize family financial support, with a particular focus on caring for elderly parents. This filial responsibility can result in multi-generational households and shared financial obligations. Additionally, there's often a preference for concrete assets, such as real estate, over abstract investments like stocks. 

In many Asian cultures, financial success is closely tied to family honor. There's often a strong focus on education as a path to financial stability and a cultural inclination to save rather than spend. However, this can sometimes lead to an aversion to debt, even when it might be financially advantageous, such as a mortgage for home ownership. 

Native American communities often have a more communal view of wealth, emphasizing resource sharing within the tribe. They may also focus on sustainable living and be wary of mainstream financial institutions due to historical exploitation. 

 These cultural attitudes significantly affect spending, saving, and investing habits.

For instance, the emphasis on family support in African American and Hispanic communities can lead to higher levels of payments and financial assistance to relatives, which can impact personal savings rates. The Asian cultural emphasis on education often results in higher spending on tutoring and academic programs, but also in higher rates of education achievement and potentially higher earning power. 

Some cultures' preference for concrete assets can result in lower participation in the stock market, potentially limiting long-term wealth accumulation. Equally, cultures with a strong saving ethic may have higher savings rates but might miss opportunities for wealth growth through strategic investing. 

Recognizing that these cultural and financial attitudes are not inherently positive, or negative is important. They each have potential benefits and drawbacks. The key is understanding these attitudes and their impact on our financial behaviors. 

Let us connect these cultural and financial attitudes to the generational wealth concepts discussed in last week's episode. Remember we discussed the importance of financial education, diverse asset ownership, and entrepreneurship in building generational wealth.

Cultural attitudes can either support or hinder these wealth-building strategies. For example, cultures that emphasize education align well with the importance of financial literacy. However, cultures with a strong aversion to debt might struggle with the concept of leveraging beneficial debt for wealth building, such as taking out a mortgage to purchase a home. 

The communal focus in some cultures can be a powerful tool for pulling resources and creating community-based economic opportunities. This aligns well with the concept of cooperative entrepreneurship we discussed last week. However, it can also create challenges when trying to accumulate individual or nuclear family wealth.

Cultural attitudes about risk can significantly impact investment strategies. Cultures with a high-risk tolerance might be more open to entrepreneurship and diverse investment portfolios. In contrast, more risk-averse cultures might prefer safer but potentially lower-yielding savings vehicles.

Understanding these connections between cultural attitudes and generational wealth strategies is essential. It allows us to identify where our cultural background supports our wealth-building goals and where we might need to question or adapt certain beliefs. It is important to note that while cultural attitudes are influential, they are not absolute or set in stone. As individuals, we have the power to examine our beliefs critically and make conscious choices about which attitudes serve us and which might need adjustment. 

This process of examining and potentially adjusting our cultural and financial attitudes is not about rejecting our heritage. Instead, it's about honoring our cultural background while adapting to our current financial realities and goals. It is about taking the best of our cultural wisdom and combining it with sound financial principles to create a powerful and personalized approach. to financial wellness. 

As we progress in our discussion, I encourage you to reflect on your own cultural and financial attitudes. What beliefs about money did you inherit from your culture? How have these beliefs shaped your financial behaviors? Are there any attitudes that you feel might be limiting your financial growth? 

By understanding our cultural and financial attitudes, we establish the groundwork for the next steps in pursuing holistic financial wellness. We can see how these attitudes influence our day-to-day financial decisions and long-term financial planning. This awareness is the first step in using the power of our cultural background to support our financial success and mental well-being. 

Next, we will explore balancing these cultural expectations with our personal financial goals. We will discuss strategies for addressing potential conflicts and how to communicate effectively with family members about financial matters. So stay with us as we continue our exploration of overcoming barriers to achieve holistic financial wellness in minority cultures.

Now, let's address our second main point, balancing cultural expectations. With financial goals, this important aspect of financial wellness often presents unique challenges for individuals from minority cultures. 

Cultural expectations, particularly those related to family financial responsibilities, can significantly impact our ability to achieve personal financial goals. These expectations are often deeply ingrained and can create internal conflicts as we strive to honor our cultural heritage while securing our financial future.

Let's begin by identifying some typical conflicting cultural and financial pressures. 

First, there is the expectation of financial support for extended family members. In many minority cultures there's a strong sense of obligation to provide financial assistance to parents, siblings, and even distant relatives, while this cultural value fosters strong family bonds in a sense of community it can also strain personal finances and hinder individual financial progress.

Second, we encounter cultural attitudes regarding debt and credit. Some cultures view debt as inherently negative, which can prevent individuals from utilizing beneficial financial tools such as mortgages or business loans. This attitude, while promoting financial caution, can limit opportunities for wealth-building through property ownership or entrepreneurship. 

Third, there are often cultural expectations regarding career choices. Some cultures highly value specific professions, such as medicine or law, which can conflict with an individual's interests or financial goals. This pressure can lead to career dissatisfaction or financial strain if one pursues a high-cost education in a field they do not truly desire.

Fourth, we see cultural norms around spending and lifestyles. In some cultures, there is an expectation to display wealth through expensive possessions or lavish events, even if it strains one's finances. This can lead to overspending and hinder long-term savings and investment goals. 

Fifth, cultural attitudes about financial privacy are often present. In many minority cultures, there is an expectation of financial transparency within the family, which can make it challenging to establish individual financial boundaries. 

These pressures are well documented, not just anecdotal. According to a 2021 survey by the American Psychological Association, 72 percent of black adults and 76 percent of Hispanic adults reported money as a significant source of stress compared to 65 percent of white adults. This heightened financial stress in minority communities underscores the importance of addressing these cultural conflicts. 

Recognizing these potential conflicts. is the first step in addressing them. Now, let's explore strategies for respectfully navigating these family financial expectations while pursuing personal financial goals.

Open communication is key. It is essential to have honest and respectful discussions with family members about financial expectations and personal goals. These conversations can be challenging but they are crucial for establishing mutual understanding. 

When approaching these discussions, be clear about your financial goals and the steps you need to take to achieve them. Explain how these goals will benefit not just you but potentially the entire family in the long run. 

Listen to and acknowledge your family's concerns and expectations. Show respect for their perspective even if you disagree. 

Look for compromise solutions that honor cultural values and personal financial needs. For example, if you're expected to support your extended family, you might propose setting aside a specific percentage of your income for family support while reserving the rest for personal financial goals. 

Educate your family about financial concepts and strategy. Many cultural attitudes concerning money stem from a lack of information or outdated notions. By sharing your financial knowledge, you can help shift family perspectives. The need for financial education is particularly acute when in minority communities. A 2022 Teachers Insurance and Annuity Association of America or TIAA Institute study found that only 32 percent of black Americans and 29 percent of Hispanic Americans could correctly answer basic financial literacy questions compared to 55 percent of white Americans. By sharing financial knowledge with our families, we can help bridge this literacy gap. 

Lead by example. As you make progress to achieve your financial goals, share your successes with your family. This can help them see the benefits of your approach and potentially inspire them to adopt similar strategies.

Another crucial strategy is to set clear financial boundaries. This can be particularly challenging in cultures where there is an expectation of shared financial resources. Therefore, establishing boundaries is essential for maintaining financial health. 

Here are some ways to do this. 

Creating a budget that includes allocations for personal financial goals and family obligations. This allows you to plan for both and ensures that family support does not completely derail your financial progress. 

Learning to say no respectfully when financial requests exceed your capacity. It does happen. Explain your limitations and if possible, offer alternative forms of support. such as time or skills, 

 Keeping some aspects of your finances private. While this may go against cultural norms, it is important to maintain some financial independence. . And the last one is building an emergency fund specifically for family needs. This can help you respond to family financial emergencies without derailing your personal financial plans. 

The importance of establishing these boundaries becomes clear when we consider the wealth disparities across racial lines. The Federal Reserve's 2019 Survey of Consumer Finances revealed that the median wealth of white families was 188,200 dollars compared to 24,100 dollars for black families and 36,100 for Hispanic families. By setting boundaries and focusing on personal financial growth. We can work on closing this substantial wealth gap. 

Finding ways to honor cultural values While still pursuing your financial goals is also essential. This might involve: 

Exploring alternative ways to fulfill familial obligations that do not involve direct financial support. For example, you might offer to help family members develop their own financial skills or assist them in finding employment opportunities,

Finding culturally appropriate investment opportunities. For cultures that value tangible assets, this might involve investing in real estate or local businesses rather than stocks and bonds.

Reframing financial goals in terms of cultural values. For example, building wealth can be presented as a way to create a legacy for future generations or to better support your community. 

Last but not least, seek out financial advisors who understand your cultural background and can help you develop strategies that align with your cultural values and financial goals.

 As we consider these strategies, it is essential to remember the healing concept we discussed in our previous episode. The process of balancing cultural expectations with personal finance goals can be emotionally challenging. It may bring up feelings of guilt, anxiety, and conflict. Addressing these emotions is crucial for achieving true financial wellness. 

The emotional toll of this balancing act can be significant. In fact, research from the Financial Industry Regulatory Authority, FINRA, in 2021 showed that 55 percent of Black Americans and 53 percent of Hispanic Americans felt anxious when thinking about their personal finances compared to 44 percent of White Americans. This heightened anxiety underscores the need for emotional support in this process.

Here are some ways to approach this emotional aspect. 

Practicing self-compassion. Recognize that you are not betraying your culture by pursuing financial goals but rather finding a way to honor your heritage while also securing your future.

Seeking support from others who are navigating similar challenges. This might involve joining culture-specific financial support groups or finding a mentor who has successfully balanced cultural expectations with personal financial success. 

Engaging in cultural practices that provide emotional support and connection even as you make changes to your financial behavior. 

And lastly, considering therapy or counseling, particularly with a professional who understands your cultural background to help you work through any emotional conflicts that may arise. 

Let me say that it is essential to note that access to mental health resources remains a challenge in many minority communities. A 2020 study by the National Alliance of Mental Illness, NAMI, found that only 33 percent of black adults and 32 percent of Hispanic adults with mental illness receive treatment compared to 50 percent of white adults. This disparity highlights the need for more accessible and culturally competent mental health sources in our communities.

Remember, the goal is not to reject your cultural heritage but to find a way to honor it while also achieving financial wellness. This often involves redefining cultural values in a way that is compatible with sound financial practices. 

For example, if your culture values generosity and family support, you can reframe wealth building as a way to be more impactful in your giving over the long term. When you establish a solid financial foundation for yourself, you are better equipped to provide sustainable support to others. 

If your culture emphasizes community, you can look for ways to build wealth that benefits your community, such as investing in local businesses or participating in community development projects.

If there is a cultural emphasis on education, you can focus on financial education as a way to honor this value while also improving your financial situation. 

By finding this point of alignment between cultural values and financial goals, you can create a personalized approach to financial wellness that feels authentic and meaningful.

And as we conclude this segment, I encourage you to reflect on your experiences, balancing cultural expectations with financial goals. What challenges have you faced? What strategies Have you found effective? And how can you honor your cultural heritage while pursuing your financial objectives?

In our next segment, we will explore culture-specific approaches to holistic financial awareness, building on the concepts we have discussed today. We will examine how different cultures can leverage their unique strengths to achieve financial success and mental well-being. So stay with us as we continue our exploration of breaking barriers to achieve holistic financial wellness in minority communities.

This leads us to the third and final point of today's show: culture-specific approaches to holistic financial wellness. This topic builds upon our previous discussions, exploring how different cultures can leverage their unique strengths to achieve financial success and mental well-being. 

As I mentioned before, holistic financial wellness goes beyond just money management. It integrates financial health with mental, emotional, and even physical well-being. For minority communities, this holistic approach must also consider cultural values and practices. 

How can we develop culture-specific strategies for financial wellness?

First, we will discuss integrating cultural practices into financial planning. Many cultures have traditional practices that can be adapted for modern financial management. 

For instance, in some African and Caribbean cultures, there's a tradition of communal saving called sou-sou or pardna. This practice involves a group of individuals contributing to a shared savings pool, with each member receiving the total amount in rotation. This concept can be modernized into a structured savings plan or even a small-scale investment club promoting community bonds and financial growth. 

Many Asian cultures emphasize the importance of saving for the future. This value can be channeled into creating robust emergency funds and retirement savings plans. The concept of 'saving face' can be reframed as maintaining financial stability to protect family honor. 

Hispanic cultures often prioritize family and community. This value can be incorporated into financial planning by creating financial goals or community investment projects. For example, family members might pool resources to invest in a small business or real estate property, benefiting the entire family unit.

Native American traditions often emphasize living in harmony with nature. This principle can guide sustainable and ethical investing practices focusing on companies and funds prioritizing environmental stewardship. 

By integrating these cultural practices into financial planning, we create strategies that feel authentic and align with our values, increasing the likelihood of long-term adherence.

Next, let's explore culture-specific financial education and resources. To be truly effective, financial education must be tailored to the specific needs and contexts of different cultural groups. 

Here are five suggestions. 

Developing financial literacy programs that use culturally relevant examples and scenarios. For instance, a program for recent immigrants might focus on understanding the U.S. banking system and building credit, while a program for multigenerational families might emphasize estate planning and wealth transfer strategies. 

Creating financial education materials in multiple languages, ensuring accessibility for non-native English speakers. These materials should go beyond mere translation, incorporating cultural nuances in addressing culture-specific financial challenges.

Establishing community based financial education centers staffed by professionals who understand the local cultural context. These centers can offer workshops, one-on-one counseling and resources tailored to the community's needs. 

Leveraging technology to provide culturally relevant financial education is another one. This might involve developing mobile apps and online platforms that offer financial advice and tools specifically designed for different cultural groups. 

Partnering with cultural institutions such as churches, mosques, or community centers to offer financial education programs. These trusted institutions can help overcome skepticism and mistrust of financial services within some communities.

Now, let's consider how we can expand on the solutions discussed in our previous episodes with culture-specific approaches. 

For generational wealth building, we can explore culture-specific investment strategies. For example: 

In cultures that value tangible assets, we might focus on real estate investment strategies, including multifamily properties that can provide both housing and income for extended families.

For cultures with strong entrepreneurial traditions, we might emphasize business ownership and franchise opportunities as a path to wealth creation. 

And in cultures prioritizing education, we can develop strategies for funding higher education, while building wealth, such as 529 plans combined with strategic student loan management.

We can advocate for culturally competent financial services for mental health support. This might involve training financial professionals in cultural competency, ensuring they understand the unique financial challenges and cultural values of different groups. 

Developing support groups that address financial stress and cultural pressures provides a safe space for individuals to discuss their challenges with others who share similar experiences. And 

Creating mindfulness and stress reduction programs that incorporate cultural practices, such as meditation techniques from various traditions or culture-specific forms of art therapy. 

We can explore cooperative economic models rooted in cultural traditions for community economic empowerment. This might include: 

Developing a modern version of traditional lending circles, providing access to capital for individuals who might struggle to obtain loans from traditional financial institutions. 

Creating community investment funds that allow members to pool resources and invest in local businesses or community development projects. And 

Establishing worker-owned cooperatives based on cultural models of shared labor and community support. 

We must remember that these culture-specific approaches are not about isolation or separation. Instead, they serve as bridges, helping individuals navigate between their cultural heritage and the broader financial landscape. The goal is to create financial strategies that feel authentic and meaningful, increasing the likelihood of long term success. 

Furthermore, these culture-specific approaches can contribute to greater diversity and innovations in the financial sectors as a whole. By bringing diverse perspectives and practices into the mainstream, we can create a more inclusive and solid financial system that better serve all communities.

However, implementing these culture specific approaches is not without its challenges. Some potential obstacles include:

Lack of representation in the financial services industry. As you know, many minority communities are underrepresented among financial professionals, making it difficult to find advisors who understand specific cultural context.

Stereotyping and generalization. There's a risk of oversimplifying complex cultural attitudes concerning money or assuming all members of a cultural group share the same financial values. 

Balancing tradition with modern financial realities. Some traditional financial practices may need to be adapted to align with current financial regulations and economic realities and 

Overcoming systemic barriers. Culture-specific approaches alone cannot address systemic issues such as discrimination in lending or employment practices. 

To address these challenges, we need a multi-faceted approach that entails: 

Encouraging diversity in the financial service industry through mentorship programs, scholarships, and targeted recruitment efforts, 

Promoting ongoing cultural competency training for financial professionals to ensure they can provide nuanced and culturally sensitive advice. 

Advocating for policy changes that address systemic barriers and promote financial inclusion for all communities. And lastly, 

Fostering cross-cultural dialogue and learning to promote mutual understanding and innovative financial practices. 

 As we implement these culture-specific approaches, it is essential to measure their effectiveness. This involves tracking financial metrics and assessing improvements in overall well-being and community economic health. 

Some potential measures might include: 

Increases in savings rates and investment participation within specific cultural communities, 

Improvements in financial literacy scores among different cultural groups. 

Reduction in financial stress and anxiety levels as measured by surveys and mental health assessments.

Growth in community wealth, including increased business ownership and property values in minority neighborhoods and 

Increased participation in formal financial systems, such as opening bank accounts or accessing credit. 

By tracking these metrics, we can refine our approaches and demonstrate the value of culturally sensitive financial strategies.

 As we conclude this point, I encourage you to reflect on your own cultural background and financial practices. What cultural strengths can you leverage for greater financial wellness? Are there traditional practices that you can adapt to support your financial goals? And how can you contribute to the financial empowerment of your cultural community?

Remember, achieving holistic financial wellness is a journey, not a destination. It requires ongoing learning, adaptation, and growth. By embracing culture-specific approaches, we can create financial strategies that build wealth, honor our heritage, support our communities, and contribute to our overall well-being. 

As we conclude our discussion on breaking barriers and achieving holistic financial wellness in minority cultures, let us reflect on the key insights we have explored today. 

We began by examining the deep-rooted cultural and financial attitudes that shape our relationship with money. We then discussed strategies for balancing cultural expectations with personal financial goals, acknowledging the challenges and emotional complexities involved in this process. Finally, we explored culture-specific approaches to financial wellness, recognizing the power of integrating our cultural strength into our financial strategies. 

 Throughout this journey, we have emphasized the importance of honoring our cultural heritage while adapting to the realities of our current financial landscape. This balance is not always easy to achieve but it is essential for true financial empowerment and well-being. 

 As we move forward on our path to financial wellness, let us draw inspiration from the words of the great Mahatma Gandhi, who said: "You must be the change you wish to see in the world." In the context of our discussion, this quote reminds us that transforming our financial lives begins with us. By taking charge of our financial education, setting clear boundaries, and developing culturally informed strategies, we become agents of change for ourselves, our families, and our communities. 

Remember, achieving financial wellness is not just about accumulating wealth. It's about creating a life of purpose, security, and fulfillment that aligns with our deepest values. By embracing a holistic approach that considers our cultural background, we can build financial strategies that feel authentic and sustainable. 

And as we end this discussion, I encourage you to take one step, however small, to advance your financial goals this week. Whether it is having a conversation with your family about money, researching culturally relevant investment opportunities, or simply taking time to reflect on your financial values, each action brings you closer to financial empowerment. 

 Before we part ways, I have an important invitation for you. I have prepared a unique resource to support your holistic financial wellness journey. The Mental Health and Money Journal Prompts. These prompts are designed to help you explore the connection between your financial habits and your emotional well-being. I encourage you to download the prompts journal from our website, www. mariejocaesar.com. It is a powerful tool for deepening your understanding of your relationship with money and fostering mental clarity around your financial decisions. 

Thank you for joining me on this exploration of holistic financial wellness. Next week, we will continue our exploration of financial wellness and mental health in minority communities with a special focus on race, finance, and anxiety - Navigating Minority Mental Challenges.

I hope you will join us for this important discussion until next Thursday at 7pm Pacific Standard Time. Take care of your finances and mental health and continue merging life and money. Bye for now.