The Importance of Financial Literacy for Hispanics and Latinx
The racial wealth gap in the United States is nothing new for communities of color, especially Latino families. There are many reasons for the gap that prevent people of color from succeeding economically, including the fact that many Hispanic households are unfamiliar with financial literacy.
“In a Hispanic community, we work really, really hard, and sometimes we look up and don’t ask too many questions, or I guess talking about money and finances is definitely taboo,” said Cristian Sanchez, financial adviser. for Northwestern Mutual.
Income inequality is one of the main factors. In 2018, the U.S. Census Bureau reported that median incomes for Hispanic men in Idaho were around $35,000, about $15,000 less than non-Hispanic men. For Idaho women, their salary was about $25,600, about $13,000 less than non-Hispanic women.
Financial advisor Cristian Sanchez said he wanted to highlight the importance of a financial advisor and how helpful they can be to Hispanic and Latino communities, no matter where you are on the scale. economic.
“In most cases, they don’t know where to start or who to talk to. So they don’t need a financial advisor, and it’s going to cost them an arm or a leg to have these conversations,” Sanchez said.
Being informed about your finances is key to helping families better understand the importance of creating a budget, saving for emergencies, and investing in a diversified portfolio.