Hispanic americans today are in a unique position in the United States’ economy. There are many factors that constitute their wellbeing, which is defined as “the state of being healthy, happy, and wealthy” (Xiao, 2015). I think it is important to understand these factors and their effect on this ethnic group as well as the rest of the economy. It is especially significant to know the economic status of Hispanic Americans based on income, as they make up a large portion of the population and working force, and are an important demographic in american politics. Therefore, I pose this question; Compared to the national average, what is the economic status of Hispanic Americans measured by income? This question will be discussed by analyzing the
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In addition to this, Hispanics hold fewer assets and have a lower net worth than White americans. In relation to this, Hispanic Americans are largely unbanked, being the highest proportion of population groups that do not use a bank (Porto, 2015). As a group, they are less likely to hold stocks or mutual funds and generally score lower in nancial literacy tests (Xiao, 2015). A disadvantage that Hispanics face in the economy is that they are twice as likely as whites to be denied for credit applications and as a result, experience higher interest rates (Porto, 2015). This may lead to other problems, such as utilizing more expensive means of acquiring loans, which may further weaken financial wellbeing and strengthening negative financial habits. Lastly, homeownership by Hispanic Americans is much lower than national average (45.6% in 2015) (U.S. Census 2015). This suggests that Hispanics are more likely to rent than purchase a house, most likely a result of low income. Ultimately, Hispanic Americans are a struggling population in terms of financial capability, as a result of many factors surrounding income and financial …show more content…
Although their current economic status is below average in the United States, this rapidly growing population shows signs of continued improvement. An example of this is that “From 2012-2014, Hispanics were the only major population group to simultaneously lower their poverty rate and increase their annual household income” (Barraza, 2014). This is very encouraging, as that is not a usual occurrence. An interesting finding is that Hispanics are less likely to seek professional financial advice than White Americans. However, financial advising can greatly benefit Hispanic American financial wellbeing. When highly financially knowledgeable, hispanics more likely to “engage in responsible financial management” (Porto, 2016). This may include budgeting, saving money, and controlling spending. As financial literacy among Hispanic Americans increases, we are likely to see continued increases in areas such as banking, home ownership, and family savings among others. This is not only beneficial for this population, but also the US as a whole. Because Hispanics make up a large chunk of the United States population, it is important for this group to continue improving their financial wellbeing to stimulate a more healthy economy for
In addition to this, Hispanics hold fewer assets and have a lower net worth than White americans. In relation to this, Hispanic Americans are largely unbanked, being the highest proportion of population groups that do not use a bank (Porto, 2015). As a group, they are less likely to hold stocks or mutual funds and generally score lower in nancial literacy tests (Xiao, 2015). A disadvantage that Hispanics face in the economy is that they are twice as likely as whites to be denied for credit applications and as a result, experience higher interest rates (Porto, 2015). This may lead to other problems, such as utilizing more expensive means of acquiring loans, which may further weaken financial wellbeing and strengthening negative financial habits. Lastly, homeownership by Hispanic Americans is much lower than national average (45.6% in 2015) (U.S. Census 2015). This suggests that Hispanics are more likely to rent than purchase a house, most likely a result of low income. Ultimately, Hispanic Americans are a struggling population in terms of financial capability, as a result of many factors surrounding income and financial …show more content…
Although their current economic status is below average in the United States, this rapidly growing population shows signs of continued improvement. An example of this is that “From 2012-2014, Hispanics were the only major population group to simultaneously lower their poverty rate and increase their annual household income” (Barraza, 2014). This is very encouraging, as that is not a usual occurrence. An interesting finding is that Hispanics are less likely to seek professional financial advice than White Americans. However, financial advising can greatly benefit Hispanic American financial wellbeing. When highly financially knowledgeable, hispanics more likely to “engage in responsible financial management” (Porto, 2016). This may include budgeting, saving money, and controlling spending. As financial literacy among Hispanic Americans increases, we are likely to see continued increases in areas such as banking, home ownership, and family savings among others. This is not only beneficial for this population, but also the US as a whole. Because Hispanics make up a large chunk of the United States population, it is important for this group to continue improving their financial wellbeing to stimulate a more healthy economy for