Hispanic millennials taking on financial support of immediate, extended family
Nearly three-quarters are supporting family members, compared to a little more than half of non-Hispanics.
Many Hispanic millennials are taking responsibility not for their own financial needs but also those of family members during the pandemic.
Nearly three-quarters are supporting family members, compared to just more than 50 percent of non-Hispanics, according to new research from Bank of America’s Better Money Habits. In addition, nearly one-quarter increased or are increasing financial support for family, including immediate and/or extended family, during the pandemic.
“Many Hispanic millennials are providing financial support to family and facing disproportionate impacts from drops in savings and other financial hardships, underscoring the need for guidance as they take proactive steps to rebuild financial security,” said Christine Channels, head of community banking and client protection at Bank of America.
The survey also revealed that nearly half of Hispanic millennials (45 percent) contributed less than $1,000 to savings or investments over the last year, and nearly one-quarter (23 percent) were not able to save at all. Despite these challenges, 51 percent of Hispanic millennials are optimistic about their financial outlook, and many are taking positive steps toward a more financially secure future.
Other key findings from this research include:
- Gaps in savings and emergency funding, and job instability pose serious challenges. Before the pandemic, 40 percent of Hispanic millennials did not have an emergency fund (vs. 34 percent of non-Hispanic millennials) and 27 percent didn’t have enough saved to weather the impact of the pandemic (vs. 17 percent).
- Seventy-two percent said the pandemic affected their ability to save, more so than non-Hispanic millennials (59 percent).
- Today, 38 percent still find it difficult to save (vs. 29 percent of non-Hispanic millennials); one-quarter (24 percent) are living paycheck-to-paycheck; and 13 percent are having trouble paying rent/mortgage or other essential expenses.
- As job insecurity remains a pressing challenge, the survey found that one in five Hispanic millennials are still unemployed.
- Twenty-six percent said reduced income is a top barrier to achieving their financial goals, followed by being unable to save (25 percent) and job instability (19 percent).
- Compounding these challenges, half of Hispanic millennials do not have a financial role model or anyone to turn to for financial advice, which is notably more than non-Hispanic millennials (39 percent).
“Family has long played a powerful role in Hispanic millennials’ financial priorities and decisions, and the pandemic has only strengthened their commitment to the financial well-being of loved ones,” said Alberto Garofalo, community banking and development executive at Bank of America. “Our research shows us that as Hispanic millennials take steps to rebuild their own financial security, they’re also strongly prioritizing financial support to family in the year ahead.”
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