UnidosUS, the nation's largest Latino civil rights and advocacy organization, has always had a knack understanding the issues that most worries Latinos in the U.S. And as the presidential elections approach, surveys have started popping up on a weekly basis. And from the looks of it, finances and inflation are top on their minds as recent polls from places like Pennsylvania and California have revealed.
Now, a new report by MoneyLion, in partnership with The Harris Poll, has revealed valuable insights into the Latino community's current approach to their finances and financial literacy, highlighting challenges and opportunities.
The report, titled Understanding U.S. Hispanic Financial Literacy & Empowerment in 2024, examines how the community approaches personal finance, revealing both a desire for growth and significant obstacles to achieving financial stability.
One of the key findings from the study is that only 54% of U.S. Latinos are considered financially literate, while 69% of non-Hispanics meet that mark. The reasons are varied, but there seems to be a direct correlation with how they spend their time as 68% of them say they don't have enough time to access financial tools and resources, compared to 51% of non-Latinos.
When it comes to financial safety nets, Latinos also lag behind as only 53% of them have established emergency funds, and just 24% have contributed to retirement accounts in the past year.
But rather than sitting still, Latinos are hungry to learn. As the study explains, the demographic has an "enthusiasm for financial growth" which is "encouraging and speaks to a community eager to take control of its future."
36% of Latinos want to master budgeting skills, 33% are eager to navigate credit scores and
45% are keen to learn more about saving money. "It's clear — we need quick, accessible education that fits into the Hispanic community's jam-packed schedule," the study explains.
A great opportunity for this type of education might be found on social media as 24% of respondents turn to these platforms for answers to those types of questions. This shift marks a move away from traditional financial guidance methods.
The report concludes that targeted actions are needed to bridge these gaps. Recommendations include leveraging social media for accessible financial education, providing more culturally relevant services, offering low-cost financial tools, and creating relatable content that addresses the specific challenges faced by the Hispanic community.
Moreover, 74% of Hispanics surveyed said they would be more likely to support a presidential candidate who prioritizes financial literacy, underscoring the political significance of this issue.
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