Is the American Dream disappearing?
It’s a perennial question asked for some time and Latinos, in particular, answer in the affirmative.
A new study from MassMutual examines American family attitudes towards finances and financial planning and found that one-third of Latinos have a dour attitude about the Dream.
When asked about the definition of the American Dream, not living paycheck to paycheck is more likely to be part of the American Dream for Latinos.
Latino households are more likely to have a broader definition of family that includes extended family, and one in four worry about being able to care for their parents as well as their own nuclear family.
“With strong family and cultural values, Latino families are juggling multiple financial priorities, such as a future caregiver role for elderly parents,” David Hufnagel, Latino market director at MassMutual, said in a statement. “We want to empower families with resources to help them achieve their long-term financial goals and prepare them to protect their loved ones from unexpected events.”
Juggling Financial Priorities
Latinos face some big challenges, including having the lowest household income of all segments surveyed and being among the least prepared for a financial emergency.
With an average household income of $107,801 of those surveyed, it appears that Latinos have relatively lower accumulated wealth.
Interestingly, 75 percent of those who selected homeownership as part of their American Dream are confident that they will one day own a home if they do not already.
Paying Down Debt
Paying for higher education and wanting to play an active role in preparing children for future success through financial education are especially important for Latinos. But as student debt levels continue to rise in the U.S., many families are worried about managing both day-to-day expenses and paying down debt. The majority of Latinos carry some type of debt in the form of mortgages, credit cards and student loans.
Preparing for Financial Emergencies
Latinos are less prepared than other consumer populations surveyed for a financial emergency with 19 percent having less than a month of monthly expenses saved.