The financial pulse of the Latino population reveals serious problems in many of the homes in the fastest growing community in the country. Just over half—52%—of Latinos are concerned about their ability to meet a basic need like paying next month’s rent or home mortgage. A recent survey conducted by BSP Research for UnidosUS and Oportun among Latinos in California, Arizona and Texas last April reveals that the reality of most families is far from being economically comfortable.
This is despite the fact that the Latino community, of 62 million people in the United States, has multiplied its economic contribution to the national GDP two and a half times in just a decade, reaching 3.2 trillion dollars. Also despite better employment and salary rates and progress in the fight against inflation. The most affected are those who earn less than $29,000 a year. 65% in this low-income group share this concern about paying for housing, but even four out of 10 Latinos who earn more than $50,000 annually view this monthly payment with the same feeling of unease. This concern is most pressing among people ages 25 to 39, younger households, and especially among those without a college degree.
Housing is the largest expense for families, and in recent years both purchase and rental prices have skyrocketed to the point of being primarily responsible for high inflation. There is a lack of affordable housing in many cities where a high proportion of Latinos are concentrated and the aid that was granted with the covid has been reduced until it disappears just when it is most expensive to have a roof over your head.
But it is not only the market situation that complicates the lives of these families, it is the lack of sufficient income. Just over a third of this population reveals that their first concern is to earn more because what they earn is not enough to cover their expenses. Almost half of those who suffer from this lack of income earn less than $29,000 annually, an amount that is double the poverty line for a single person in 2024 but is below for a household of four people. However, the lack of sufficient income is something that also causes concern among those with somewhat higher salaries. One in four Latinos who earn more than $50,000 share this concern.
With these premises, it is not surprising that in the survey, 17% emphasize inflation and daily expenses as one of the causes of their unrest. The gradual reduction in price pressure is hardly a relief when inflation skyrocketed very quickly. Santiago Sueiro, senior political analyst at UnidosUS, explains that now that inflation is going down, Latinos are trying to get used to the new prices: “politicians cannot say that inflation is fine, it must be said that “It has gone down but there is still a lot to do.”
These financial pressures leave little room for savings and even less room for emergencies. These are expenses that always arrive, you don’t know when, but they could be a flat tire, a broken window in the house or having to travel to take care of a loved one. More than a third of Latinos do not have an emergency fund, and 17% have less than $400 in it.
UnidosUS has detected that almost half of Latinos have medical debt and 15% owe bills worth between $500 and $2,500. Medical costs are such a complication for family budgets that one in five does not go to medical appointments, the same proportion does not take the indicated medication and 27% avoid the dentist.
Sueiro explains that the message of this report is directed not only to the financial sector so that they adapt to this demographic but also to politicians because, as they verified in a previous survey in November, the first concern of Latinos, above any other thing, it’s economical. “The economy and employment are the most important things for Latinos. “Whoever wants to have the Latino vote will have to talk about it.” Sueiro explains that although in this community there are more solutions on the Democratic side, the percentage of those who do not see solutions in either party also grows, up to 20% on some issues.
This analyst says that one of the most positive aspects in recent years is that there have been improvements regarding the management of personal finances by increasing the use of traditional banking. However, the average number of people in this community outside of banking entities is higher than the general average and many Latinos continue to depend on high-cost products with little supervision to cover their costs, such as the so-called payday loansloans of low amounts and high interest rates, and check box services (check cashing). 17% use the services of Buy Now, Pay Later (Buy Now, Pay Later) which has no interest, but also 12% make use of advances on credit cards, which are very expensive. 28% have also needed to borrow from friends and family.
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