April is designated as “Financial Literacy Month” in the United States. According to the U.S. Secretary of the Treasury, finance literacy is considered the cornerstone of the “American Dream.” Making wise financial decisions can open doors to more opportunities for individuals and families.
For many Chinese Americans living in the U.S., financial management goes beyond just “earning a little more.” It involves safeguarding hard-earned money, ensuring that family assets outpace inflation, and gradually building a solid financial foundation for the coming years.
Renowned former Wall Street executive and visiting scholar at Columbia Business School, Jing Youlun, emphasized the importance of understanding the purpose behind managing finances. It is not about chasing after the “best” product but rather about clarifying whether your money is intended for short-term use or long-term growth.
Jing Youlun suggested that starting with the safest and simplest financial tools can lead to wise choices. Currently, U.S. Treasury bonds are the closest to “risk-free” investment returns. As of April 1st, the yields for 6-month, 1-year, 2-year, and 10-year Treasury bonds were 3.72%, 3.68%, 3.81%, and 4.33% respectively, making short-term Treasury bonds and bond funds attractive options for funds that may be needed in the near future.
Many Chinese Americans tend to compare Treasury bonds with Certificate of Deposit (CD) accounts offered by banks. According to the Federal Deposit Insurance Corporation (FDIC), as of March 16, 2026, the average interest rate for a 6-month CD was 1.47%, and for a 12-month CD was 1.52%; even at their upper limit, a 12-month CD could yield around 4.93%.
Jing Youlun pointed out that many standard bank interest rates are not substantial. Keeping large sums of money in traditional low-interest accounts may seem secure, but in reality, it could lead to a gradual decline in purchasing power.
The recent announcement by the U.S. Bureau of Labor Statistics indicated a 2.4% year-on-year increase in the Consumer Price Index (CPI) for February, while the national average savings account interest rate and money market account rate were only 0.39% and 0.56%, respectively.
Jing Youlun stressed that leaving significant funds in a savings account could result in a loss of purchasing power as inflation outpaces interest earned. He highlighted the need for a shift in mindset from mere saving to transforming income into assets that can combat inflation and grow over time.
Regarding stock investments, Jing Youlun suggested that for the majority of Chinese American families in the U.S., utilizing low-cost broad-based Exchange-Traded Funds (ETFs) as the core of their stock allocation is more suitable. This recommendation is based on historical data showing that most actively managed funds underperform the market, and the fees associated with them can erode returns.
Jing Youlun emphasized the value of ETFs for many families, not just due to lower fees but also because they do not require dedicating time, emotions, and life to stock picking. This passive approach may be more practical for busy Chinese Americans with significant work and family responsibilities compared to chasing after hot stocks.
In conclusion, many Chinese American families struggle not due to a lack of willingness to manage finances but due to the misconception of assuming that saving money equates to investing it. In the U.S., wages represent cash flow, while assets represent wealth. Many hardworking families with decent incomes tend to keep significant funds in low-interest accounts for safety, missing out on potential asset appreciation.
Jing Youlun stressed the importance of distinguishing between short-term and long-term financial goals. While short-term funds require stability and liquidity, long-term investments need to focus on outpacing inflation, hence highlighting the value of low-cost broad-based ETFs.
In essence, improper financial management in many households stems from mismanaging funds intended for different purposes, such as taking risks with stable money or prematurely withdrawing funds allocated for long-term growth.
For Chinese American families in the U.S., the ultimate financial concern should not be short-term market fluctuations but the risk of letting hard-earned income stagnate in places where it barely grows or is gradually eroded by inflation.
The true foundation of sound financial management for many Chinese American families lies not in discovering a miraculous product but in gradually establishing an asset structure that balances liquidity, safety, and long-term growth potential.