Latinos and Money Management
It is no secret that the Latino consumer in recent years feels more optimistic about their finances and proudly sees how their household income has continued to increase. Several reasons contribute to this, better education therefore better jobs, new generations are starting to work at younger ages, the industries are offering better salaries to bilingual individuals, etc.
But, are all Latinos being smart about their finances? Unfortunately, the lack of trust by Latinos regarding financial institutions and the lack of education, limits their potential to set higher financial goals and achieve financial success using the so many resources available to them.
I am not saying the financial industry is not serving this market. As a matter of fact, in recent years Latino consumers have generated exceptional growth opportunities for the financial services industry. Higher incomes generate opportunities for financial professionals to serve this huge group of consumers.
Between 2005 and 2014 the number of Latino households with an income between $75,000 and $100,000 increased more than 50% and Latinos accounted for 39% of the growth in the number of households in this income bracket. During the same period the number of Hispanic households enjoying an income in excess of $100,000 more than doubled.
However, there is still so much to do.
Millennial Latinos in particular have an outsized importance for marketers of financial services mainly because Hispanics on average are younger than non-Hispanics and thus millennials account for a greater share of the Hispanic population. Hispanic millennials (those in the 25- to 34-year-old age group) make up 25% of the Hispanic population while non-Hispanics in this age group represent just 16% of the non-Hispanic population.