By Malene Y. Satter
The importance of family among Hispanics has a strong influence on their decisions about money, with the need to care for family members playing a major role in their actions. But they’re hungry for more knowledge about how to handle their finances, with almost half (45 percent) saying that no one ever taught them about saving and investing. In comparison, 31 percent of U.S. investors overall say they were never taught about money that way.
The results of a Wells Fargo survey reveal other cultural differences in attitudes about money in the Hispanic community. Their family orientation can be seen in their responses to numerous questions; for instance, 55 percent agree that “raising and investing in kids is the best retirement plan.” Among the general U.S. population of investors, only 41 percent concur. In addition, 24 percent expect family members to help them survive financially during retirement, compared with only 13 percent of U.S. investors as a whole.
That attitude shows in how much support Hispanic investors provide to their relations, with 31 percent supporting adult children, parents, grandparents, extended family, or others, compared with 26 percent of U.S. investors overall. Six percent are even sending money to people outside the U.S., compared to only 1 percent of U.S. investors overall.
On other question, Hispanic investors say they’d like to provide inheritances to family or friends — 59 percent say so — and 17 percent say that’s their chief motivation for saving and investing. Only 8 percent of U.S. investors overall cite that as their chief motivating factor.
And while 92 percent of Hispanics say their parents talked “a lot” or “sometimes” about how important hard work was while they were growing up, fewer than half report that parents devoted as much time to educating them about financial issues.
As a result, 76 percent say that they wish they’d learned more about managing money while growing up, and 72 percent wish they knew more about investing in stocks, bonds and mutual funds.
Originally published on BenefitsPro.com