The Senate recently declared April as Financial Literacy Month, led by U.S. Senators Tim Scott and Jack Reed, co-chairs of the Financial Literacy Caucus.
Senator Scott emphasized the importance of financial education in achieving success in America, while Senator Reed highlighted the need to raise awareness of available resources for improving financial literacy.
The resolution was supported by a bipartisan group of Senators, including those who recognized that approximately 7.1 million Americans lack access to basic financial services, limiting their ability to build wealth and achieve long-term financial security.
In April, Annuity.org published an article on financial literacy within the Hispanic/Latino/Latinx community in the United States. One major issue facing this community is the wealth gap, which contributes to less money and limited opportunities compared to the average white American.
Low-wage jobs and a lack of benefits such as paid family medical leave, retirement accounts, and health insurance are significant challenges for Latinos. As a result, Latinx students take out loans more frequently than white students, leading to a cycle of debt.
Hispanic workers’ wage discrepancy has also affected their families’ earnings.
Click here to read “Financial Literacy in the Latinx Community” on the Annuity.org website. Or, read “The state of financial literacy in the Latine/Hispanic Community” report on the Washington State Commission on Hispanic Affairs website.
According to a McKinsey & Company study, Hispanics represent over 18% of the US population but only own 6% of employer firms. Furthermore, Hispanic-owned businesses have a slightly lower success rate than white-owned companies.
The Latinx community faces a lack of access to retirement planning tools and resources. Hispanics participate in retirement plans less frequently than white families, partly due to working in jobs that do not offer robust benefits or options to save for retirement. This is a significant issue since Hispanics have a greater life expectancy than other age groups.
While most financial literacy problems cannot be solved overnight, the stigma around taking on debt within the community has led to lower credit scores. This has resulted in riskier financial situations, such as using financing options riskier than traditional mortgages to buy a home. Financial literacy can help understand these situations and the potential drawbacks of risky financing options.
Fortunately, many organizations can help the Latinx community overcome financial challenges. These organizations range from offering information to connecting Latinos with needed resources. Larger financial planning organizations such as Bank of America, and JPMorgan Chase also offer help and resources to the Latinx community.
Click here to read “Financial Literacy in the Latinx Community” on the Annuity.org website. Or, read “The state of financial literacy in the Latine/Hispanic Community” report on the Washington State Commission on Hispanic Affairs website.
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