8 Tips for Latinas with Generational Trauma to Heal Their Relationship with Money

thoughtful woman while using her credit card

For Latinos, money is a topic that’s often colored by generational trauma, emotional baggage, and cultural expectations. At a subconscious level, those things create patterns around money that hold us back. The good news is that those patterns aren’t difficult to break and healing your relationship with money is very much possible. Here are 8 tips that will help you get started on that:


Take the time to understand your money history

girl receiving money from an adult

Photo by Karolina Kaboompics on Pexels

Your family’s history with money can 100% shape your financial mindset, so it’s essential to understand it. Reflect on your upbringing and the messages your Latino parents provided about money. Understanding the narratives you’ve been taught about money is the first step in healing your relationship with money. Acknowledge the past, but understand that you don’t have to carry your parent’s struggles with money or beliefs about it. You can create a new narrative around money and a new mindset.

Educate yourself about money

Woman studying her personal finances

Photo by Karolina Kaboompics on Pexels

Most people, including Latinos, learn things about money from their families and the people around them. There’s no class in school about personal finances or how to have a healthy relationship with money. You can take your education into your own hands, though. Financial literacy is the best way to get smarter about money and build a better mindset about it. There are plenty of free YouTube videos, books, and podcasts that will help you learn the basics of budgeting, saving, investing, and personal finances. The more you learn, the more confidence you’ll feel about managing your money.

Dream big, start small

green plant in clear glass cupPhoto by micheile henderson on Unsplash

When it comes to financial goals, you need to keep things realistic. You can dream as big as you want, but you have to start small. Whether it’s saving for a vacation, paying off debt, getting a car, or investing in your education, breaking down big goals into smaller, manageable steps can make them less overwhelming and more attainable. Nothing you want is out of reach, it’s just a matter of living within your means and making financial plans you can stick to.

Embrace a growth mindset

silhouette of a womanPhoto by Miguel Bruna on Unsplash

Believing that you can change your financial situation is essential. If you don’t believe you can, you won’t; that’s how a fixed mindset works. Instead of sticking with that, we encourage you to develop and embrace a growth mindset that allows you to see challenges as opportunities to learn and grow. Remember, your financial habits are not set in stone. If something’s not working for you, you can change it and develop healthier money habits. Doing that is how you start to heal your relationship with money.

Create a financial plan for yourself

Woman studying her personal finances

Photo by Karolina Kaboompics on Pexels

Creating a financial plan doesn’t have to be complicated and crazy. It’s just creating a budget and sticking to it. To do that, you need to track your income and your expenses to see where your money is going. It’s good to do this for a couple of months so you can identify areas where you can cut back, like shopping, to have more money for your financial goals. Your financial plan needs to align with those goals, so make sure they’re specific. Whether you just want to build an emergency fund, save for one thing or another, or invest, you need your budget to support that and help you achieve it.

Practice mindful spending

mindfulness printed paper near windowPhoto by Lesly Juarez on Unsplash

One thing many Latinos do, especially if they’ve always been discouraged from spending because “money doesn’t grow on trees,” is spend more than they have. Instead of being scared of spending, they go the other route and spend without thought. Both extremes are wrong, but when it comes to spending in particular, it’s important to be mindful. It’s very easy to make impulsive purchases because everything’s available online and we’re constantly being asked to buy, buy, buy. You have to keep yourself in check, though. Before you buy anything, pause and ask yourself if it’s taking you closer or farther from your goals. This is how you can above impulse buying and make conscious choices about money.

Ask for help!

woamn talking and working

Photo by Marcus Aurelius on Pexels

Understanding personal finances and what works for you isn’t always something you can do on your own. Sometimes, you need the guidance and support of someone who already got the hang of it and overcame their generational trauma. That’s where financial advisors and financial coaches can come in handy. They will help you create financial plans, find solutions for any current financial issues, and make informed decisions about investments and more. They can also help you build better financial habits and address the generational trauma holding you back.

Review and adjust regularly

Woman studying her personal finances

Photo by Tima Miroshnichenko on Pexels

Your financial plan is not set in stone! As you make progress on your goals, you’ll need to review and adjust it. Tracking your income, expenses, savings, and more isn’t something you do once and be done with it. It needs to become a part of your routine because it’s how you will stay on track. It’s not about obsessing over money, it’s just about having a clear picture of your financial circumstances, your priorities, and what you’re doing about healing your relationship with money. Remember, money is a tool to live your life, not a source of limitations.

LDC Latina Initiative group photo
LDC Latina Initiative Press

The Latino Donor Collaborative launched the LDC Latina Initiative in New York City on November 19th, 2024. The history-making initiative aims to empower Latinas through cutting-edge reports, impactful events, and transformative programs. It also serves to uplift Latina voices and pave the way for a new era of leadership and innovation. The initiative comes at a crucial time, as recent economic data highlights the immense and growing impact of Latinas on the U.S. economy and culture.


Keep ReadingShow less
latina woman looking tired

Kinkeeping refers to all activities related to maintaining family relationships, passing down traditions, and remembering the family’s heritage. This includes things like cooking, sharing food recipes, teaching stories, crafts and duties, contacting family members, and even organizing events to keep in touch with relatives.

Keep ReadingShow less
latino family having dinner

Thanksgiving is such a weird holiday.

As far as my knowledge goes, not a lot of people in Latin America celebrate it but many are aware of this U.S. holiday. As a native Salvadoran, growing up I remember that I thought it was weird to have a holiday that’s a day to just be thankful. We perceived it differently. Later I realized what Thanksgiving actually commemorated: a day to celebrate, but to celebrate how European colonizers had taken advantage of Native Americans.

Keep ReadingShow less