- Each year, almost a million people from around the world immigrate to the U.S. in search of a better future, whether they come for safety or educational opportunities or higher paying jobs, our culture loves stories about people achieving that shiny American dream of financial prosperity.

- [Philip] Get a good job, save for the future, buy a house, build wealth.

But one thing that first-generation Americans find out pretty quickly is that immigration can come with a bunch of unexpected costs.

And that means the path to the American dream may have at least a couple of detours.

(upbeat music) - The first bump in the road to making it, it takes money just to be able to immigrate.

There are fees for a green card to establish your permanent residence, or you may have to pay separately for work permits or background checks.

- Once you qualify for permanent citizenship, there are application fees for that too.

Altogether, the cost can come to over $1000 per person every time you have to renew your paperwork.

And in 2023, many of these fees are said to increase, even double in some cases.

- Paying these costs would be like adding another car payment or student loan payment to an already tight monthly budget.

And since generally, you have to be a permanent resident for at least five years before you can apply for citizenship, first-gen Americans have to be prepared to pay these fees for a long time.

- [Philip] Okay, so you've carefully budgeted so that you can pay for all that paperwork.

You still have to pay for regular life stuff too; the rent or mortgage, education costs, and utility bills we all deal with.

Keeping all of these things afloat can be hard enough for any of us, but first-generation Americans often have to work even harder.

- For one, newly-arrived immigrants are more likely to be unbanked, meaning they don't have any kind of savings or checking account at a bank or credit union.

They may also have difficulty qualifying for credit cards or loans if they don't have a credit history or social security number.

- There are many reasons first-gen Americans may not have a bank account; high minimum balance requirements, inability to supply the required forms of identification, lack of credit history, or even language barriers, or lack of access to a brick and mortar bank location.

- But being unbanked can make people far more likely to use predatory financial services, like payday lenders, in order to cash paychecks or pay bills.

Just like we discussed in our episode about why it's more expensive to be poor, unbanked individuals have to pay a premium just to take care of the normal costs of living.

- And when money is tight, many first-generation Americans don't have access to the same safety nets as folks born in the U.S.

There's no moving back in with mom or dad, or borrowing money from a family member.

But non-citizens often can't access government safety nets either.

- Even if they qualify for programs like Medicaid, SNAP food assistance, or supplemental income, many first-generation Americans are scared to use them.

That's because the Department of Homeland Security has a public charge rule where they can deny immigration or citizenship applications to people who have used public benefits.

- The rules for which specific benefit programs disqualify people have changed from administration to administration, so many folks play it safe and avoid these safety nets altogether.

- For all these reasons, if you're a first-generation American, it can feel like you're entirely on your own to make ends meet, or that you have to work twice as hard as other people just to keep up.

But all this hard work still feels worth it to many immigrants because of another unique category of costs.

- One of the main reasons folks immigrate in the first place is so they can financially support family abroad.

People in the U.S. sent almost $150 billion of cash payments, also called remittances, to other countries each year.

That's triple what the U.S. government spends annually on foreign aid.

- The average migrant worker is spending about 15% of their paycheck on sending money back home to the 1-in-9 people globally who are supported by remittances.

This money often pays for housing and healthcare for spouses and parents, or education for children or siblings, which makes remittance payments incredibly important to the global economy.

But it's not all sending money out.

- [Philip] American immigrants contribute to the economy in the U.S. through increased productivity, tax revenue, and consumer demand.

The American Immigration Council estimates that foreign-born workers pay almost half a trillion dollars in taxes and have $1.3 trillion of annual spending power.

- And first geners are likely to create jobs too.

One in four new businesses in the U.S. is started by an immigrant, despite the extra challenges they face.

First-gen Americans add value to the economy everywhere.

- Gosh, that's a lot.

With all these extra financial burdens, is there any way to lighten the load?

- Well, if you're a first-generation American, the first thing you should know is that you don't have to navigate the U.S. financial system alone.

Many non-profit aid organizations can help you get access to a bank account, give you guidance on spotting financial scams, and even help you apply for fee waivers for all those annual permits and paperwork.

- Second, don't forget to budget for your own savings first.

It can be tempting to send as much money home as you can as soon as possible, but building up a safety net for yourself will help you to support family in the long term.

It's like putting on your own oxygen mask before helping others.

- And finally, make sure to build a support network of other friends, neighbors, or co-workers who feel your first-gen struggles.

Dealing with all of these unique financial issues can be isolating, so don't be embarrassed to ask your peers how they're making it work.

- Even if talking about money feels scary or impolite, everybody learns how to manage their finances from other people.

- The best advice comes from those who have been in your shoes before.