Significant financial literacy disparities remain between Hispanics and non-Hispanics in the US, according to a new report from MoneyLion, the digital ecosystem for consumer finance.
MoneyLion revealed that the financial literacy rate for US Hispanics was 54 per cent – a significantly lower figure than that of the 69 per cent of non-Hispanics.
While this disparity exists, 45 per cent of US Hispanics want to learn more about saving money if they have the time to do so, (compared to just 33 per cent of non-Hispanics) and 36 per cent are interested in budgeting (versus 27 per cent of non-Hispanics).
However, 68 per cent of Hispanics report not having enough time to access financial tools and resources that can help them learn about money and personal finance topics, compared to 51 per cent of non-Hispanics, underscoring a need for quick, more accessible financial education.
The findings come from the ‘Understanding US Hispanic Financial Literacy & Empowerment 2024 Report‘ from MoneyLion, which looks to explore the financial literacy and personal finance attitudes of the US Hispanic community.
The report showcases crucial insights into how Hispanics in the US perceive their access to financial resources, their preferred methods for learning about money, and the broader political implications of their financial literacy.
“The US Hispanic community is one of the most important in the country,” added David Krane, senior consultant at The Harris Poll, which conducted the survey. “As this community continues to grow and exert influence in US society, it’s clear from MoneyLion’s research that providing the right resources to improve financial literacy is essential. Helping US Hispanics build greater confidence in managing their finances is a highly desirable outcome.”
Closing the gap
MoneyLion also found that fewer US Hispanics have an emergency fund (53 per cent) than non-Hispanics (67 per cent). Furthermore, only 24 per cent of US Hispanics contributed to a retirement account in the past 12 months, compared to 49 per cent of non-Hispanics.
Overall, around 24 per cent of US Hispanics turn to social media for financial guidance, compared to just 17 per cent of non-Hispanics, indicating a strong preference for non-traditional financial information sources. This highlights the fact that Hispanics are looking for accessible financial information, pointing to a need for more to help close the financial literacy disparities.
Seventy-four per cent of US Hispanics are more likely to support a presidential candidate who prioritises financial literacy as one of their main issues – spotlighting the fact that this demographic believe the topic is hugely important.
“Our latest financial literacy survey highlights the strong desire within the US Hispanic community to learn and improve their financial well-being,” said Yuka Yoneda, vice president of content marketing at MoneyLion. “It also shows the barriers this group faces when it comes to learning about money, such as limited time, and a preference for modern formats like short videos for financial education. This data is exciting for MoneyLion as it highlights the impact of our ongoing initiatives to foster financial empowerment and literacy.”
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