Citizens report more debt, less savings than immigrants
TAMPA — A national survey revealed that key financial services — including credit cards and home loans — remain out of reach for many immigrants who are not yet U.S. citizens.
But immigrants lead when it comes to saving money as U.S. citizens reported having more monthly debt, according to a survey led by One Percent of America, a Massachusetts nonprofit that helps people become naturalized Americans.
According to the national survey, immigrants want to improve their lives but the naturalization process can be challenging to navigate and can prevent many from becoming citizens.
The survey was conducted last year among 1,063 immigrants, including permanent residents, naturalized citizens, Deferred Action for Childhood Arrivals and Temporary Protected Status holders, and immigrants who entered the country without legal permission, as well as 507 citizens. Among the report’s highlights: Immigrants and citizens have similar aspirations, like saving enough for retirement and buying a home or car. But the survey revealed that immigrants are focused on achieving legal status whereas Americans prioritize debt issues.
Nearly 1 million immigrants became citizens in 2022, according to U.S. Citizenship and Immigration Services. However the high costs of the citizenship application process, $725 to file the application, and other barriers keep many immigrants from pursuing this. According to the nonprofit, 91% of eligible immigrants don’t proceed.
The survey also showed there are three top areas where immigrants want more support, including career development, immigration assistance and services and products, like education loans and health insurance.
Both groups reported “income instability, job insecurity, and COVID/inflation” as their top three challenges. In fourth place, immigrants reported their “immigration experience” as a main concern, whereas citizens reported “debt issues.”
“These … differences continue to illustrate that both populations have shared goals and challenges, but that immigrants’ main hurdle is their immigration status, and for citizens, debt is a primary challenge,” according to the survey.
On debt and personal savings, nearly 40% of immigrants reported saving money monthly compared to 24% of citizens. And nearly a quarter of citizens reported their debt increases every month compared to 14% of immigrants.
The study concluded that immigrants, just like citizens, “aspire to integrate, build a life, and earn a living.”
“It is also evident from these survey results that each population struggles with a different set of challenges,” the study concluded. “The difference in struggles is not a difference in motivation but rather because immigrants’ starting points and access to tools are different from their U.S.-born counterparts.”
”scar Huerta, a husband and father who moved from Venezuela to Florida almost seven years ago, said he applied for asylum in 2016.
The 47-year-old opened a computer business in Tampa and works as a real estate agent. His asylum gave him peace of mind and the ability to legally live, study and work in the U.S.
In 2021, he bought a house in Pasco County for his family. He is proud of having achieved one of his priorities: owning a home.
But Huerta said many immigrants that are living in limbo lack the tools and resources to accomplish their goals. Now he wants to help others.
“It’s not easy, but it’s a pathway that you can build step by step,” Huerta said. “Owning a home gives you stability and an indispensable change of mindset.”