For many young Latinos, helping their families begins long before they have children of their own.
Forty-three percent of Gen Z Latinos say helping raise or financially support younger siblings has delayed personal goals such as moving out or getting married, according to new findings from the BMO Real Financial Progress Index.
The survey depicts young Latinos taking on responsibilities that can resemble those of a parent, financial contributor, and household administrator. Among Gen Z Latinos who care for younger siblings, 52% said those siblings live in the same household, compared with 40% of Gen Z caregivers in the general U.S. population.
Financial pressure follows those responsibilities. Nearly three-quarters, 74%, said family-related expenses cause them anxiety. More than half, 56%, reported sacrificing career opportunities or earning potential to support their families.
Their role also extends beyond helping younger children. Fifty-two percent of Gen Z Latinos said they are responsible for guiding their parents through the U.S. financial system. Those tasks can include translating documents, opening bank accounts and helping pay household bills.
The findings illustrate how financial responsibilities can move in both directions within Latino households. Young adults may be expected to help parents navigate institutions while simultaneously contributing to the care of younger siblings.
The pressure confronting Gen Z is part of a broader multigenerational financial squeeze identified by BMO. Fifty-nine percent of U.S. Latino parents described themselves as members of the "sandwich generation," meaning they are responsible for both children and aging relatives. That was 14 percentage points higher than the 45% reported among U.S. parents overall.
Among Latino parents in the sandwich generation, 69% said they regularly feel pulled between the financial needs of their children and older relatives. Another 65% said supporting their family had led them to sacrifice earnings or career potential.
Financial assistance for relatives is not considered optional in many of these households. Fifty-one percent of sandwich-generation Latino parents described giving money to extended family as a non-negotiable monthly expense, placing it in the same category as rent or a utility bill.
Living close to relatives can offer an important financial buffer. Seventy-eight percent of U.S. Latinos with young children said they rely on help from extended family to afford opportunities for their children.
According to BMO's estimates, Latino families with relatives nearby spend an average of $1,488 annually on childcare, compared with $4,425 for those without local support. Their reported elder-care costs also fall from $2,184 to $972 when family help is available.
Those savings help explain why the absence of nearby relatives can be particularly expensive for Latino households. BMO found that Latino parents without local family support spend an average of $352 more annually on childcare and elder care than parents in the general population facing the same situation.
The burdens are particularly pronounced among Latina caregivers. Forty-one percent of Latinas caring for children under 18 or younger siblings said they shoulder both the financial and emotional dimensions of that care. That compares with 31% of Latino men and 30% of both women and men in the general population.
Sixty-eight percent of Latina mothers also said they regularly feel overwhelmed by financial responsibilities, compared with 60% of Latino fathers and 55% of mothers overall.
The findings suggest the effects of rising family costs reach beyond parents. In many Latino households, younger adults are helping keep the family's financial and caregiving systems running, but that support can come at the cost of their own independence, career advancement and long-term plans.
BMO did not include the survey's sample size, field dates, margin of error or subgroup sizes in the information provided with the findings. Those details are important when evaluating results involving narrower groups such as Gen Z Latino caregivers.
