From Last to Lead: Building Financial Power in the Latino Community.
Latinos are about one in five U.S. residents, more than 63 million people, and with an even larger share of the future workforce. Economic momentum for the latine community is real: entrepreneurship is rising, unemployment has fallen, and Latino net worth has been growing markedly in recent years.
But financial literacy gaps are a key headwind (1). On national assessments, Hispanics score lower on core money topics like investing, insuring, risk, and longevity. They are less likely to have emergency savings, retirement accounts, or confidence in retiring, underscoring both knowledge and access gaps that compound over time (2).
Why Savings and Investing lag?
Access to plans
A majority of Hispanic workers lack access to a workplace retirement plan, the single biggest driver of U.S. retirement savings behavior. When plans aren’t offered, participation and balances suffer, and people must navigate more complex "Do It Yourself" solutions. Also, when a workplace retirement plan is offered, latinos are not participating at the same rate as other communities.
Competing priorities
Cultural expectations are often present. Supporting parents, children, and extended family, often take precedence over long-horizon saving, even at higher incomes. This makes dollar-cost habits harder to sustain without defaults and nudges.
Language and trust
Limited bilingual resources and experiences of discrimination reduce engagement with financial institutions and advice, slowing adoption of investing tools and protective products.
Income and Volatility
Wage gaps and concentrated employment in sectors with variable hours reduce consistent surplus to invest, amplifying the need for frictionless, low-minimum solutions.
Knowledge Gaps
Lower longevity and investing literacy mean underestimating how long money must last and how markets compound, leading to overly conservative or episodic investing.
Life insurance participation: Where the gap shows
Only about 42% of Hispanic adults report owning life insurance, and more than half live with a coverage gap—millions of families are one catastrophe from financial derailment. COVID-19 sharpened risk awareness, but ownership still trails need, especially among middle-income households with dependents and multigenerational obligations.
Why it matters
Life insurance is not just legacy—it’s income protection, debt coverage, and a buffer that keeps kids in school and mortgages intact. Closing this gap is foundational to wealth preservation and the ability to invest through crises (3).
Retirement Readiness: Access and Confidence
Just 21% of nonretired Hispanic adults say their retirement savings are on track—the lowest among major groups—reflecting both lower plan access and lower balances. About 64% of Hispanic workers lack a workplace plan, and many prioritize family support over retirement saving, delaying compounding and reducing future income security (4).
Surveys show Hispanics are less likely to hold any retirement account, maintain emergency funds, or feel confident about retiring as planned. Combined with longer life expectancy, weaker longevity literacy heightens the risk of outliving assets.
What can be done?
If you’re ready to start building your financial future, begin with a simple, values‑first plan: protect your income, then make it grow. Set up a small emergency fund, get affordable term life insurance to safeguard your family, and open a straightforward investment account—like a balanced fund or target‑date option—that you can contribute to automatically from each paycheck. Look for help in trusted spaces—community workshops, your workplace, or small business networks—that offer Spanish‑friendly guidance and accounts that work even with an ITIN. Starting where you feel comfortable builds trust and momentum.
Once you’ve taken those first steps, keep your plan alive with systems that do the work for you. Split each paycheck so part goes to needs, part to investing, and part to savings—then let automation handle it. Learn in small doses, like quick voice notes or messages that explain investing and insurance in plain language. And celebrate milestones along the way: your first $1,000 saved, your first six months of steady contributions. With simple actions, steady habits, and community support, saving, investing, and protecting your family becomes a natural part of life—one that grows with you.
Progress is possible because the barriers are specific, and so are the solutions. Build the habit, claim the match, protect your income, and let time do the heavy lifting. Tu futuro (And your family’s) deserve nothing less.
Thanks for reading, see you next week for more insights and inspiration!