Financial Access And Understanding Financial Services Essay

713 Words Nov 28th, 2016 3 Pages
Having financial access and understanding financial services and which to choose from are extremely important for economic success. Unfortunately, financial literacy and access to these services are a major concern for immigrants in the United States. Many families immigrate in search of economic security and financial opportunities, but are the necessary steps being taken to provide this key component to achieving the “American Dream” to immigrants and their families?
Access to financial services has direct implications on the future of second generation immigrants. Most immigrants are members of economically vulnerable groups meaning that access to loans, checking and savings accounts, and mortgages are crucial to financial stability. However, due to factors such as limited English proficiency, low income and lack of education on banking and finances, immigrants can be disregarded and/or taken advantage of by banks and other financial institutions.
The U.S. immigrant population is greatly increasing year by year and it is important for financial institutions to understand the needs of immigrants in relation to financial stability. Many first generation immigrant families lack access to affordable credit, understand credit scores, or have a checking or banking account. This leads to the use of alternative financial services such as check-cashing establishments and quick payday loans with high-interest rates. In addition, many rely on family members and friends to…

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