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Financial Issues of Hispanic Americans

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Handbook of Consumer Finance Research

Abstract

In a number of household finance matters, Hispanic Americans appear to constitute a vulnerable population. Compared to non-Hispanic Whites, Hispanics are disproportionately unbanked, less likely to hold stocks or mutual funds and score lower in financial literacy tests. Hispanic homeownership is still lower than the national average and this group has been one of the most affected by the recent financial crisis and current sluggish economy. In the long run, Hispanic households also accumulate fewer assets and have a lower net worth than White Americans, despite recent gains on income gaps. All these factors suggest that this group lacks the necessary financial capability to achieve financial freedom. This chapter provides a synthesis of the current state of Hispanic American household finances by reviewing three areas where this population financial needs and behaviors differ from the overall population: financial capability, use of financial services, and asset building.

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Authors and Affiliations

  1. Department of Human Development and Family Studies, University of Rhode Island, Transition Center #212, 2 Lower College Road, Kingston, RI, 02881, USA

    Nilton Porto Ph.D.

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  1. Nilton Porto Ph.D.
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Correspondence to Nilton Porto Ph.D. .

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  1. Univ of Rhode Island, Transition Center, Department of Human Development and Family Studies,, Kingston, Rhode Island, USA

    Jing Jian Xiao

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Porto, N. (2016). Financial Issues of Hispanic Americans. In: Xiao, J. (eds) Handbook of Consumer Finance Research. Springer, Cham. https://doi.org/10.1007/978-3-319-28887-1_17

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