Cultural Stigmas Around Finances

Conversations around money are among the most challenging conversations we face in our daily lives. And in our diverse communities, we recognize that the discomfort around financial topics is not universal - it is deeply rooted in cultural values, experiences, and social conditioning that vary radically across different backgrounds. At Pension Fund, we know that understanding these cultural nuances is essential for creating a more supportive and inclusive environment, not only for our members and employees, but also for our families and communities.

The Universal Yet Personal Nature of Money Shame

While financial anxiety exists in every culture, the specific triggers, expressions, and coping mechanisms differ significantly. What is seen as financial "success" or "failure," how openly money should be discussed, and the role of family versus individual responsibility in financial topics are all culturally informed concepts that shape our interactions.

Research consistently shows that financial stress is one of the leading causes of anxiety and decreased quality of life — especially after the pandemic¹. However, traditional financial education and support systems often fail to account for the cultural complexity of shame and guilt related to money, leaving many individuals without culturally relevant support. So, let’s take a look at some cultural differences around money conversations.

Understanding Money Across Different Cultures

East Asian Cultures

In many East Asian cultures, the concept of "face" (mianzi in Chinese, mentsu in Japanese) profoundly influences money conversations. Financial struggles are often viewed as bringing shame not just to the individual, but to their entire family lineage². This cultural framework can make people from these backgrounds reluctant to seek financial help or discuss money challenges openly — especially with strangers.

The emphasis on collective family financial responsibility also means that individual financial decisions are rarely made by one family member. A person might be supporting multiple generations while simultaneously feeling pressure to maintain an appearance of financial stability. This dual burden of actual financial stress and the cultural obligation to hide it creates a particularly challenging situation in both personal and professional settings. ³

Latino/a/x Cultures

Latino cultures often operate under the concept of familismo, where family needs supersede individual wants⁴. This cultural value can create unique financial pressures, as employees may be expected to contribute to extended family members' needs, including those in other countries. The cultural emphasis on family loyalty and support can make it difficult for individuals to prioritize their own financial security or seek help for personal financial challenges.

Additionally, many Latino families have experienced historical exclusion from traditional banking systems. This leads to alternative financial practices that may not align with traditional financial advice offered in mainstream financial education programs⁵. An example of this is the “cundina” – also known as “tanda” – which is a form of mutual aid in Mexican and other Latin American cultures. In the cundina a group of people agrees to contribute a certain amount of money on a weekly or monthly basis, then a member is designated to receive the total amount pooled together at the end of the period determined. This happens until everyone has had a turn as the designated person. Cundinas are used to save money, pay debts or to put aside rent/mortgage money.

African American Communities

The African American experience with money cannot be separated from centuries of systemic exclusion from wealth-building opportunities. From slavery through redlining to ongoing lending discrimination practices, these historical experiences have created deep-rooted distrust of financial institutions and advisers⁶.

This historical context means that financial shame in African American communities often carries additional layers of complexity, including internalized beliefs about worth and systemic barriers to wealth growth⁷. Traditional financial advice that assumes equal access to opportunities may feel particularly tone-deaf to individuals from these communities. This has made some African American families seek alternative financial tools, like community-based savings pools and mutual aid groups.

South Asian Cultures

In many South Asian cultures, financial success is closely tied to educational achievement and professional status. There's often significant family and community pressure to achieve certain financial milestones that reflect well on the family's social standing⁸. This can create intense shame when financial reality does not match cultural expectations.

The concept of "log kya kahenge", meaning “what will people say” in Hindi and Urdu, significantly influences financial behaviors and disclosure. Individuals from these backgrounds may struggle with financial challenges in silence rather than risk community judgment⁹.

Indigenous Communities

Indigenous cultures often have fundamentally different relationships with money and wealth accumulation. Even the word “wealth” is not in most indigenous languages. Many tribal cultures emphasize collective well-being over individual “wealth” accumulation, and the concept of saving money for personal gain may conflict with cultural values of sharing and community support¹⁰.

Additionally, historical trauma from forced assimilation and loss of traditional economic systems creates unique challenges in navigating mainstream financial systems¹¹.

Middle Eastern

In many MENA (Middle East and North Africa) cultures, financial matters are considered private family affairs. The concept of honor (karama in Arabic) can sometimes extend to financial stability, making it particularly shameful to admit financial struggles¹². Also, Islamic financial principles around interest (riba) and ethical investing may create conflicts with conventional financial advice and investment options available through mainstream financial institutions¹³.

Breaking Down Barriers

Understanding these cultural differences is only the first step. Communities, churches, and institutions committed to true equity must adapt their financial support systems to address these varied cultural needs and shame responses. Rather than a “one-size-fits-all” financial education/support, organizations and institutions should develop culturally responsive communication strategies. This might include offering financial education in multiple languages, incorporating cultural values into financial planning discussions, and recognizing that "financial success" may look different across cultures.

Representation Matters

Having financial counselors and advisers who understand specific cultural contexts can significantly reduce the shame and resistance that prevent employees from seeking help. This representation helps create safe spaces where cultural values are understood and respected rather than dismissed. It also avoids someone having to explain their cultural background every time they interact with an organization or institution, and creates trust.

Moving Forward with Pension Fund

Creating culturally responsive financial support requires intentional effort to understand and address cultural differences in money conversations. Pension Fund started by conducting cultural competency assessments of our current programs, gathering feedback from diverse community members, and partnering with culturally specific financial organizations. Pension Fund’s work with P3 Development Group speaks to our intentionality in assessing the needs of our members and prospective members who have been underserved in the past.

Most importantly, we must recognize that financial wellness is not culturally neutral. By acknowledging the deep cultural roots of money shame and guilt, we can begin to create environments where all individuals feel safe to seek the financial support they need to thrive.

The goal isn't to eliminate cultural differences in approaching money conversations, but rather to have systems that honor these differences while providing effective support. When we succeed in this effort, we not only improve individual financial outcomes—we create more equitable and supportive communities for everyone. Pension Fund intentionally supports employees who are bridges when it comes to crossing cultural, language, and even theological paths. We know they are needed, and we look forward to continuing to learn and grow. Will you learn and grow along with us?