Almost six-in-ten college-educated Hispanics surveyed in a new report find it hard to cover expenses and save for the future, according to a new report.
TIAA-CREF Institute and the Global Financial Literacy Excellence Center surveyed over 1,500 college-educated Hispanics. The report, “Hispanic Personal Finances: Financial Literacy and Decision-making Among College-Educated Hispanics,” found just 12 percent of college-educated Latinos demonstrated advanced financial knowledge and only 32 percent displayed basic financial literacy, rates lower than other groups.
The report analyzed Latinos' assets and liabilities as well as their planning behavior.
About 59 percent of college-educated Hispanics face significant financial insecurity as they find it hard to pay bills and cover basic expenses, while 30 percent of this group is confident they would have enough savings in an emergency.
As for financial vulnerability, about 48 percent of those surveyed say they have too much debt. Fifty percent surveyed have engaged in expensive credit card behavior, 35 percent used high-cost borrowing methods and 56 percent have not considered how much to save for retirement.
As the Hispanic population is on the rise, Latinos' financial well-being is increasingly important for the U.S. economy.
“It is crucial that we understand the challenges Hispanic families face financially as their share of and impact on the economy increase,” said Stephanie Bell-Rose, Senior Managing Director and Head of the TIAA-CREF Institute.
TIAA-CREF Institute, a retirement provider for people in academic, research, medical and cultural fields, said the report will serve as a resource for financial institutions, community service organizations and government agencies that seek to serve Latinos.