What we grew up with and how we are relearning. 

Growing up in a Latino household, many of us heard these kinds of phrases, "Don’t get a credit card, it’s a trap to get you into debt," "Keep your money in a safe, not the bank," or my personal favorite, "If you leave your purse on the floor, you’ll lose your money!"

Our parents and grandparents passed down these financial lessons out of love, protection, and maybe a little fear of the unknown. For many families, survival was the primary goal, so keeping cash close, avoiding debt, and avoiding complicated public systems felt like the safest path.

But survival strategies aren't always the same as strategies for building generational wealth. 

Recently, we surveyed our own team at Hispanic Access Foundation, a diverse group of leaders from across the Latino community to ask about the financial myths we heard growing up, what we had to teach ourselves and what barriers we are working to break down. 

Launched in partnership with Thrivent, the Latino Financial Empowerment Initiative creates open, shame-free spaces to learn about managing money. Here are 5 common financial misconceptions rooted in our cultural upbringing, and the empowering truths we are relearning together.

Misconception 1: All debt is bad, credit cards are a trap. 

"I grew up being told that credit cards should be avoided entirely or only used for emergencies. I had to relearn as an adult that using credit responsibly is actually what opens doors."

  • The Reality: It’s completely understandable why our families feared debt. Highly accessible consumer debt can be dangerous. However, avoiding credit entirely leaves you without a credit history. In the United States, a strong credit score is key to renting an apartment, securing low interest rates, and buying a home or car.

  • What we know now: Beyond building a strong credit score, using a credit card responsibly is often safer than using a debit card. If a credit card is stolen or compromised, you are fighting fraud with the bank’s money while it gets investigated. With a debit card, that money is deducted directly from your checking account, potentially leaving you unable to pay rent or bills while waiting for a resolution. Learning to pay off your balance in full each month gives you both credit-building power and built-in protection. 

Misconception 2: Banks can’t be trusted. 

"My family kept cash at home because they didn't trust banks or system failures. I had to learn how modern banking and interest actually work."

  • The Reality: Many of our families came from countries with unstable or untrustworthy banking systems or faced language and access barriers when arriving in the U.S. Keeping cash under the mattress or in a safe felt like the only way to guarantee it wouldn't disappear.

  • What we know now: Cash hidden at home loses value over time due to inflation and is vulnerable to loss or theft. Insured bank accounts and automated savings tools keep your money secure while laying the foundation for investing.

Misconception 3: Saving money is all you need to do for your future. 

"Money was never talked about, except to save it. Learning about the stock market, 401(k)s, and Roth IRAs as an adult put me behind. But now I'm catching up."

  • The Reality: A scarcity mindset teaches us to spend as little as possible and hold onto every penny. While saving is a crucial first step, saving alone will rarely build generational wealth or fund a comfortable retirement.

  • What we know now: True financial security comes from making your money work for you. Learning concepts like compound interest, workplace retirement matches (401k), and individual retirement accounts (Roth IRAs) helps bridge the gap between being prepared for today, tomorrow, and retiring with peace of mind.

Misconception 4: Talking about money is not appropriate. 

"If you need financial help, it feels shameful. But if you talk about doing well, it can be seen as bragging.”

  • The Reality: Silence around money keeps us from reaching out for support. When we don't talk about salaries, debt, or budgeting, we end up relying on guesswork, ads, or bad advice rather than solid financial education.

  • What we know now: Money is a tool, not a measure of your worth. Breaking the taboo by having transparent, supportive conversations with trusted family, partners, and community members removes the stigma and helps everyone make better decisions together.

Misconception 5: Your financial growth will support family obligations. 

"Money is rarely just my money; it’s tied to family survival. I often feel like I am my parents' retirement plan, which makes it hard to focus on my own future."

  • The Reality: Family solidarity is one of the most beautiful aspects of Latino culture. Supporting parents and helping relatives in need comes from deep love. However, feeling solely responsible for everyone else's financial well-being can lead to personal strain and prevent you from building your own foundation.

  • What we know now: Setting healthy financial boundaries isn't selfish but essential. Just like securing your own oxygen mask first on an airplane, securing your own financial health ensures you can support your family in a way that is sustainable for generations to come.

Unlearning the financial beliefs passed down to us isn't easy, and it certainly doesn't happen overnight. It takes grace, patience, and a safe community where we can ask tough questions without judgment.

That’s why we’ve partnered with Thrivent and local, trusted partners to host dedicated financial education workshops designed specifically for us. Together, we want to anchor our financial journeys in the very qualities that already define the Latino community: our deep-rooted love for family, fierce loyalty, and unstoppable work ethic.

Let’s turn survival into legacy and shape a thriving future for us all.

Written by Magali Robinson.