A third of Latinos attribute debt problems to parents who don’t teach them how to manage their money
NEW YORK – A new study reveals that many Latino parents hope their children will make better choices with their money than they do. Only 51% of Latinos want their children to make the same financial decisions (savings, investing, and budgeting) as they do.
A recent survey of 2,000 Americans between the ages of 18 and 41, half of whom identify as Latino, found that non-Latino respondents were much more likely to want their children to learn and model their own financial habits (76 % versus 51%).
Regardless of their identity, respondents cited not saving money (45%), spending on things they don’t need (45%) and going into debt without a plan (41% ) as the top financial mistakes they wouldn’t want their kids to repeat. Forty-seven percent wish their high school had better prepared them to manage their money as adults.
Conducted by OnePoll and commissioned by TurboTax to celebrate their #LeadingConEducación program, the survey asked respondents to comment on how their high school and college years shaped their current financial acumen.
Latinos said they were less likely to talk to their parents about money than non-Latinos (67% vs. 81%), with 50% saying the lack of this conversation made it harder to find a partner means of financing their studies.
Helping young Latinos save money and build a better future
Additionally, 35% of Latinos said that because they didn’t talk to their parents at an early age about how to manage their money, it ended up in debt as adults. Topics like saving (35% vs. 50%), investing (20% vs. 35%), and budgeting (23% vs. 34%) were found to be less prevalent among Latino households.
Overall, six in 10 American adults say they have experienced peer pressure to spend money. More than half (52%) believe that their parents have influenced their drinking habits, far more than their friends (41%), classmates (26%) or celebrities (8%).
Another eight in 10 said earning their own money helped them learn to make better spending decisions. However, the lack of a financial plan for continuing education contributed to the indebtedness of nearly two-thirds of respondents.
“Part of our job readiness program helps students develop personal finance and entrepreneurial skills needed to succeed in their future jobs,” says Alejandra Molinari, head of TurboTax Latino Communications, in a statement. communicated. “Providing bilingual educational content through webinars, articles and tax simulations, as well as offering bilingual expertise, can help Latino students lay the foundations they need for a brighter future.”
Your financial knowledge influences your future
About half of the survey says their level of financial literacy has a lot to do with their chosen career and college. Nine in ten say having financial knowledge has helped them choose a better paying career than they otherwise would have.
Only 21% of Latinos surveyed have earned a bachelor’s degree, compared to 37% of non-Latino respondents. More than a quarter (26%) of Latinos say they were the first generation in their family to attend high school.
TurboTax and OnePoll conducted an additional survey of 2,000 Americans between the ages of 18 and 41, which found that 60% of Latinos believe their lack of financial resources has kept them from saving money to complete their University studies. Four in 10 do not plan to complete a bachelor’s degree, with 23% saying they cannot afford tuition and school supplies.
According to the first survey, 71% of Latinos believe that financial support – such as scholarships or scholarships – from companies is beneficial in propelling the future of Latino students.
“In addition to schools, financial institutions can do their part to support Latino communities in pursuing their education goals,” adds Molinari. “Providing scholarships and grants can expand career choices for underrepresented communities and ease the stress of funding tuition fees.”