Maria Melchor, who immigrated to the US from Mexico at age nine and grew up undocumented in Connecticut, is now a money coach with a following of 194,000 on Instagram. Her second book, Always Have Enough: How to Build Wealth When You Don’t Come From Money, is set for release in September. In an interview with The Guardian, Melchor discusses the unique financial challenges faced by first-generation Americans and offers practical advice.
First-Gen Guilt and Scarcity Mindset
Melchor identifies "first-gen guilt" as a major concern overlooked by traditional financial advice. "A lot of our parents were just paid by the hour in cash," she said. "They don’t have 401(k)s or aren’t even eligible for social security if they aren’t US citizens." This guilt, combined with a scarcity mindset from growing up without money, influences financial decisions. Melchor helps clients shift from short-term thinking to long-term planning.
Protecting Assets for Undocumented Individuals
For undocumented people and mixed-status families, Melchor advises that assets belong to you regardless of immigration status. However, complications arise if detained or deported. She suggests transferring ownership through a limited power of attorney, or adding a joint account holder or designated beneficiary. Regarding bank accounts, she notes that no federal law requires legal status to open an account, but policies vary by bank. An Individual Taxpayer Identification Number (ITIN) can be used to file taxes, though the current administration may encourage IRS information sharing with immigration services. Melchor emphasizes consulting an immigration attorney for legal advice.
Engaging with Financial Systems
Despite risks, Melchor advises engaging with financial institutions. "Do I think that our financial institutions and capitalism are the best systems? No," she said. "But the price to pay if you opt out is staying in survival mode indefinitely." She recommends using these systems to build wealth while being wary of their imperfections.
Generational Wealth and Family Support
Melchor redefines generational wealth to include supporting older generations and siblings. She helps her parents with refinancing, banking, and investing. For clients worried about supporting parents' retirement, she advises open conversations: "You’ve just got to address the elephant in the room." She stresses putting on your own oxygen mask first, maintaining separate accounts to establish financial boundaries, and using a "Mine, Yours and Ours" system to allocate goals and expenses.
Investing in Stock Market vs. Property
Melchor recommends investing in the stock market over property for immigrants. "Property is seen as stable in our home countries," she noted, but in the US, stock market investing is more accessible, starting with as little as $1 via index funds or robo-advisors. Property requires stable income, strong credit, and a down payment.
Public Assistance and Political Engagement
Her book includes a chapter on accessing unemployment benefits, food stamps, and other programs. "Many of us are the children of people still experiencing poverty," she said, and need to know how to connect family with these resources. Melchor also ties personal finance to public policy, having visited the White House and collaborated with NYC Mayor Zohran Mamdani. "Personal finance is part of how to get wealthy, but the other part is getting as much as you can from your government," she explained.
