Updated: May 7
Did you know that Latinos tend to have lower financial literacy than other ethnic groups in the US? It's because of a combination of language barriers, lack of financial education tools, and systemic economic imbalances. In fact, according to a survey performed by the Federal Deposit Insurance Corp, more than 12% of Latino households do not have checking or savings accounts, making it challenging for them to save money and achieve financial stability.
But don't worry; the Latino community has a history of financial resilience and resourcefulness. One way for Latinos to develop generational wealth is by using a savings rule refer to as the 50/30/20 rule, which can be used monthly. According to businessinsider.com, this rule suggests that you allocate 50% of your income for necessary expenses, 30% for discretionary spending, and 20% for savings and paying off debt. Of course, you can adjust these percentages based on your unique financial circumstances.
Another great way to accumulate wealth is through online investment platforms, which are now more accessible than ever before. These platforms have lower account minimums and fees compared to traditional investment options, making it easier for people with limited financial resources to start investing. Plus, many of these platforms offer educational resources and tools to help you make informed investment decisions.
You can also use a personal finance software tools to manage your finances and achieve your financial goals. Budgeting apps, such as Pocketguard, can help you track your spending and set financial goals. The use of credit monitoring services such as Credit Karma and Experian should be considered to obtain regular updates on your credit score and report. Retirement planning tools from Acorns.com can help you manage your investments and plan for the future, while debt repayment apps like Pocketguard and Tally can assist with paying off debts more efficiently.
Taking charge of your finances can help you generate generational wealth and achieve long-term financial stability. So don't hesitate to explore these options and find the tools that work best for you!
For more information on financial literacy, please visit the GritForce Bookkeeping YouTube Channel. GritForce Bookkeeping is here to help small businesses do what they do best! They provide a remote bookkeeping service personalized for small businesses and non-profit organizations.