More than 70% of Hispanic Millennials providing financial support to family members – with many increasing their support during the pandemic
As Hispanic millennials continue to weather significant financial impacts from the pandemic, nearly three-quarters (72%) are also providing financial support to family – far more than non-Hispanic millennials (53%) – according to new research from Bank of America’s Better Money Habits. Additionally, nearly one-quarter (23%) increased or are increasing financial support for family due to the pandemic, including immediate and/or extended family.
The survey also revealed that nearly half of Hispanic millennials (45%) contributed less than $1,000 to savings or investments over the last year, and nearly one-quarter (23%) were not able to save at all. Despite these challenges, half (51%) of Hispanic millennials are optimistic about their financial outlook and many are taking positive steps toward a more financially secure future.
“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. “Through our Better Money Habits platform, we’re committed to arming individuals and families with the resources and guidance to help navigate challenging times, prepare for the future and reach their financial goals.”
Other key findings from this research include:
Gaps in savings and emergency funding, and job instability pose serious challenges
- Prior to the pandemic, 40% of Hispanic millennials did not have an emergency fund (vs. 34% of non-Hispanic millennials), and 27% didn’t have enough saved to weather the impacts of the pandemic (vs. 17%).
- Seventy-two percent say the pandemic impacted their ability to save – more so than non-Hispanic millennials (59%).
- Today, 38% are still finding it difficult to save (vs. 29% of non-Hispanic millennials), one-quarter (24%) are living paycheck-to-paycheck, and 13% are having trouble paying rent/mortgage or other essential expenses.
- As job insecurity remains a pressing challenge, the survey found that one-in-five (19%) Hispanic millennials are still unemployed.
- Twenty-six percent say reduced income is a top barrier to achieving their financial goals, followed by being unable to save (25%) and job instability (19%).
- Compounding these challenges, 51% of Hispanic millennials do not have a financial role model or anyone to turn to for financial advice – notably more than non-Hispanic millennials (39%).
Family is the cornerstone of Hispanic millennials’ financial lives
- Compared to non-Hispanic millennials, Hispanic millennials are four times more likely to be supporting their or their spouse’s parents (16% vs. 4%) as well as family abroad (17% vs. 4%).
- Seventeen percent have provided financial support to family since they were old enough to have a job – two times more than non-Hispanic millennials (8%).
- Hispanic millennials are today two times more likely to feel a greater sense of financial responsibility for loved ones (18% vs. 9% of non-Hispanic millennials).
“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 & 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.”
Hispanic millennial women disproportionately impacted by caregiving responsibilities
- More than half (56%) of Hispanic millennial women hold some type of caregiving responsibility, compared to 34% of Hispanic millennial men.
- Among those women with existing caregiving responsibilities, 58% increased their caregiving role due to the pandemic (vs. 37% of Hispanic millennial men).
- Compared to Hispanic millennial men, Hispanic millennial women are significantly more likely to be balancing both work and childcare (35% vs. 15%) and to have needed to leave the workforce or reduce work hours to care for children (19% vs. 9%)
- Hispanic millennial women who took on increased caregiving responsibilities were also more likely than Hispanic millennial men to report a financial challenge, including a decrease in earnings (30% vs. 20%) and difficulty managing finances/paying bills (30% vs. 23%).
Despite challenges, Hispanic millennials are future-focused and taking action toward their financial goals
- Seventy-one percent say the pandemic has influenced their financial values, or how they plan to spend and manage finances – more than non-Hispanic millennials (58%).
- Nearly one-third (32%) are now prioritizing saving and budgeting (vs. 28% of non-Hispanic millennials), and 27% are more focused on their individual financial goals and self-improvement (vs. 22%).
- Nearly half of Hispanic millennials (48%) plan to start an emergency fund following the pandemic (vs. 36% of non-Hispanic millennials) – and 21% have already started saving (vs. 16%).
The study was conducted June 14 – 28, 2021 by Ipsos in English and Spanish and is based on nationally representative probability samples of 1,015 general population adults (age 18+), 515 Hispanic adults (age 18+) and 394 Hispanic Millennials (age 24-40). This survey was conducted using the Ipsos KnowledgePanel®, the largest and most well-established online probability-based panel that is representative of the adult US population. Panelists are scientifically recruited into this invitation-only panel via postal mailings to a random selection of residential addresses.
To ensure that non-internet households are included, Ipsos provides access to a tablet and internet connection to those who need them. Because of this probability-based sampling approach, KnowledgePanel findings can be reported with a margin of sampling error and projected to the general population. The margin of sampling error for general population sample is +/- 3.2 percentage points at the 95% confidence level, while the margin of sampling error for the Hispanic Adult and Hispanic Millennials are +/- 4.6 and 5.9, respectively.
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