The importance of financial literacy for Hispanics and Latinx

Posted at 5:03 PM, Sep 27, 2022
and last updated 2022-09-27 19:03:00-04

The racial wealth gap in the U.S. is nothing new for communities of color, especially Latino Families. There are many reasons for the gap that keeps people of color from economic success, including that many Hispanic households don't know 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 certainly talking about money and finance is taboo," said Cristian Sanchez, financial advisor for Northwestern Mutual.

Income inequality is one of the main factors. In 2018, the U.S. Census Bureau reported the median earnings for Hispanic men in Idaho was about $35,000 — about $15,000 less than non-Hispanic males. For women in Idaho, their wages were about $25,600, which is around $13,000 less than non-Hispanic women.

Financial Advisor Cristian Sanchez said he wants to emphasize the importance of a financial advisor and how helpful they can be to the Hispanic and Latino communities — regardless of where you are on the economic scale.

"In most cases, they don't know where to start or don't know who to ask. So they don't need a financial advisor, and it's going to cost them an arm or a leg to have these conversations," said Sanchez.

Being educated in your finances is essential can help families better understand the importance of creating a budget, saving for emergencies, and investing in a diversified portfolio.