Growing up as a first-generation American, Jennifer Guerra was never taught how to manage her finances.
“My parents would always say, ‘save, save, save, save,’ but I had to learn my own ways. My mom didn’t even have a bank account until two years ago when I finally convinced her,†said Guerra, who works as a licensed clinical social worker at a school in Panorama City.
Exactly when our parents can retire can wildly vary within immigrant and first-generation communities that deal with issues like environmental racism, barriers to healthcare, gentrification, wage inequality and more.
The 31-year-old described her current financial situation as “stable†but said she has spent most of her adult life navigating credit card debt and learning how to budget.
Guerra isn’t alone in this struggle. According to a new survey commissioned by Unidos US and loan company Oportun, a majority of Latinos are concerned about their income and are struggling to pay their monthly expenses.
For the poll, 1,200 Latinos in Arizona, California and Texas were asked about their use of bank accounts, their expenses, debts, savings and access to credit. The survey was conducted in English or Spanish, depending on the choice of the respondent, and is a follow-up to a similar questionnaire previously commissioned in 2022.
The survey found that 65% of low-income Latinos, categorized as those making $29,000 or less a year, and 66% of Latinos ages 25 to 39 are worried about paying next month’s rent or mortgage bill.
“Public narratives about Latinos’ economic condition place far too much emphasis on individual behaviors of the group, rather than structural factors such as discrimination.â€
Even with a steady source of income, Guerra says she still lives with her parents because of the rising cost of living. She feels that no matter how good her credit might be or how much she saves, it’s not enough.
The poll also found that 59% of respondents are in mortgage debt of $100,000 or more, 48% had student loan debt of $15,000 or more and 47% had some kind of medical debt. According to the survey, 62% of respondents said they did not have $400 for an emergency.
Unidos US senior policy analyst Santiago Sueiro finds the results of the poll to be “really concerning,†adding that between various types of debts, bills and everyday living expenses, many Latinos are seeing their paychecks stretched thin.
“The amount of debt that people had in every category, [including] credit card debt, mortgage debt, medical debt and student loan debt has all increased. Now with interest rates higher, they’re making more payments and the number of late fees still remains very high,†Sueiro said.
The poll also found that Latinos of all ages have low levels of retirement savings; 56% of Latinos over 40 said they had $40,000 or less saved for retirement.
Without the aid of a 401(k) or any other kind of retirement plan, Guerra says she and her siblings will end up supporting their parents when the time comes — another financial stressor for the family.
“[My parents] came in [to the U.S.] with a dream of going to work and working hard. For them, it’s always work, work, work,†she said. “I always say, ‘OK, what’s the long-term plan?’ Someday, they’re not going to be able to work either because of health issues or just because they’re getting older.â€
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