The Latino community is an increasingly important thread in the fabric of America, now numbering over 68 million people, or roughly 20% of the country. As such, the financial concerns are not uniform, but extremely varied, all the way from lower-wage workers to the top 1% of corporate America.
That being said, some money issues are especially central to that community—including the state and health of the housing market, the financial hurdles facing newer Americans, and entrepreneurship as a key driver of household wealth.
Some key questions to consider in assembling a full financial plan:
What's ahead for housing affordability?
It is a difficult era for would-be homeowners, with prices making most metro areas around the country unaffordable, according to the National Association of Realtors. This impacts the Latino community in particular, since household net worth disproportionately stems from homeownership.
But wealth disparity has led to wide homeownership gaps compared to whites, especially between the ages of 35-44, according to an analysis by Harvard's Joint Center for Housing Studies. That's not helped by the fact that the majority of the Latino community lives in the nation's more expensive housing markets.
The good news is that recent trends are bringing homeownership back within reach, with inventory growing, interest rates having moderated from their peak, and many metro areas around the country seeing year-over-year price declines.
What are some of the financial challenges facing newer Americans?
Latinos have long been one of the fastest-growing segments of the country, in part thanks to consistent immigration flows. But newer citizens face a number of money-related challenges in establishing themselves in a new society.
Those include language barriers, a lack of a local credit history, insufficient financial literacy, limited access to (or distrust of) banking services, and discriminatory or predatory lending practices. Then there is the tighter immigration policy currently being enforced, which is not only affecting the undocumented but even those with full citizenship.
These challenges aren't insurmountable, but they do mean a higher degree of difficulty in getting one's financial life off the ground in a new country.
How can I start a small business?
Entrepreneurship levels in the Latino community are remarkable, starting more businesses than any other racial or ethnic group. In 2023, Latinos launched 36% of all new businesses in America, according to the State of Hispanic Wealth Report, or around double the population rate.
Most of those are "solopreneurs," but there are also almost half a million Hispanic-owned employers around the country. Business equity accounts for 17.8% of Hispanic household wealth, and those who own a business possess a net worth 2.2 times greater than those who don't.
For assistance in getting enterprises off the ground, check out these business resources compiled by the U.S. Hispanic Chamber of Commerce. Because for the Latin community in particular, entrepreneurship has developed into a key driver of generational wealth.