This month, the Pew Research Center released a report called “Latinos Increasingly Confident in Personal Finances, See Better Economic Times Ahead,” based on a 2015 national survey of 1,500 Latinos.
The report discusses the following:
- Latinos are increasingly positive about their current financial position, but many say that their family income is not keeping pace with the cost of living.
- Latinos are optimistic about the next year and the upward economic mobility for their children.
Today I want to focus on the first part of this report, and tomorrow I will talk about the second.
Latinos are increasingly positive about their current financial position, but many say that their family income is not keeping pace with cost of living.
According to the report, four in ten Latinos say their personal finances are in “excellent” (8%) or “good” (33%) shape. This is a 17% increase since 2008.
The chart above, based on the report, shows that the amount of Latinos that describe their personal finances as “excellent” or “good” (40%) has almost caught up with the general public’s view (43%).
The report is also divided into demographic subgroups, and this is what they found compared to the 2008 survey:
The younger Hispanic adults, ages 18 to 29, view their personal finances in a more positive light than the older Hispanic adults, ages 30 to 65.
The report also mentioned that the number increased by 17% among U.S.-born Hispanics and 18% among foreign-born Hispanics. Furthermore, there was an increase among Latina women (18%) and only 16% among the Latino men.
But even though Latinos are feeling confident about their finances, for many families, their income is not keeping pace with the cost of living.
These are numbers from 2015:
- 53% of Latinos said their income was falling behind the cost of living.
- 37% of Latinos said their income was staying about even with the cost of living.
- 10% of Latinos said their income was increasing faster than the cost of living.
The second part of the report focuses on the next year and the financial future of Latino children. We will look at those numbers tomorrow.