According to a new poll, many Latino parents wish their children made better financial decisions than they did. Only 51% of Latinos want their children to make the same financial decisions as they did in saving, investing, and budgeting.
According to a recent study of 2,000 Americans aged 18 to 41, half of whom identify as Latino, non-Latino respondents were far more inclined to want their children to learn and emulate their money practices (76 percent vs. 51 percent ).
Regardless of their identification, respondents identified not saving money (45%), overspending (45%), and falling into debt without a plan (41%) as the top financial errors they would not want their children to repeat. 47% wish their high school had better equipped them to handle their money as adults.
The study, conducted by OnePoll on behalf of TurboTax in honor of their #LeadingConEducación initiative, elicited responses on how their high school and college years affected their present financial savvy.
Latinos reported being less likely than non-Latinos to discuss money with their parents (67 percent vs. 81 percent), with 50% stating that the lack of this discussion made it more difficult to figure out how to fund their school.
Assisting young Latinos in saving money and laying the groundwork for a better future
Additionally, 35% of Latinos responded that since they did not discuss money management with their parents at a young age, they ended up in debt as adults.
Topics such as saving (35% vs. 50%), investing (20% vs. 35%), and budgeting (23% vs. 34%) were shown to be less frequent among Latino families.
Six in ten adults in the United States report that they have been subjected to peer pressure to spend money. More than half (52%) believe their parents have affected their purchasing habits, far more than friends (41%), classmates (26%), or celebrities (8 percent ).
Another eight in ten stated that earning their own money taught them to make wiser financial choices. However, for nearly two-thirds of respondents, a lack of a financial strategy for continuing education led to the debt.
“As part of our job preparedness program, we assist students in developing personal finance skills and the entrepreneurial mentality necessary for future employment success,” Alejandra Molinari, Lead of TurboTax Latino Communications, said.
“By providing multilingual instructional content in the form of webinars, articles, tax simulations, and bilingual knowledge, we can assist Latino students in laying the groundwork for a more prosperous future.”
Your financial literacy affects your future.
Around half of respondents think their degree of financial literacy significantly impacted their job and education choices. Nine in ten said that being financially knowledgeable aided them in choosing a more lucrative job than they would have chosen otherwise.
Only 21% of Latino respondents have earned a bachelor’s degree, compared to 37% of non-Latinos. Over a quarter (26%) of Latinos report being the first generation in their family to graduate from high school.
TurboTax and OnePoll conducted an additional study of 2,000 Americans aged 18 to 41 and discovered that 60% of Latinos felt their lack of financial resources prevented them from saving money for college.
Four in ten do not intend to complete a bachelor’s degree, with 23% stating that they cannot afford college tuition and materials.
According to the first study, 71% of Latinos believe that financial help from companies — such as scholarships or educational grants — is advantageous for Latino kids’ futures.
“Besides schools, financial institutions can help Latino communities achieve their educational aspirations,” Molinari continues. “By providing scholarships and grants, disadvantaged populations may expand their employment options and ease the financial strain associated with college fees.”