Hispanic “Life Planners” [NSIGHT]

When it comes to their financial lives, some Hispanic Millennials like to have all their ducks in a row. Using Simmons data, Tr3s recently identified and analyzed this segment, called “Life Planners.” Representing a little more than 1 in 3 Hispanics 18-34, this group is optimistic, believes in seizing opportunities when they arise, strives to be well-informed, and doesn’t like the idea of debt.

Here are some of Tr3s’s findings about Hispanic Adult Millennial (ages 18-34) Life Planners:

They’re more likely to use financial products like ATM and credit cards, checking accounts, insurance, and investments.

• More than 3 out of 4 Life Planners have a debit/ATM card, making it the most common type of financial product among this group (123 index vs. total Hispanics 18-34)
• Credit cards are less common (43%), as are checking accounts (35%)
• They are about 30% more likely than the average Hispanic 18-34 to have auto insurance (64%), or health or life insurance (49%)
• They are about twice as likely to have investments like 401ks, IRAs, or money market accounts compared with total Hispanics 18-34 (20% vs. 10%)

However, their use of these tools is still fairly low – indicating an opportunity for banks and insurance companies.

• Even though Life Planners show more of a likelihood than Hispanics overall to use financial products, less than 50% actually do
• Because Life Planners show more openness to these products, they could represent an untapped market for financial companies looking to reach new consumers

They’re heavy media consumers, in both Spanish and English.

• In both languages, Life Planners over-index in all types of media consumption (TV, websites, magazines, newspapers) compared with total Hispanics 18-34
• About 8 in 10 Life Planners watched TV (in either language) in the last week
• The internet is a key source of information (81% visited an English website in the last month, 54% visited a Spanish website)
• 2 out of 3 listened to the radio (in either language) in the last week
• Life Planners also turn to newspapers, especially in English (63% read an English newspaper in the last month, 25% read a Spanish newspaper)
• They read magazines, but a little less than they consume other media (50% read an English magazine in the last month, 37% read a Spanish magazine)

They use all types of media – but especially the internet — to feed their hunger for information.

• When Life Planners are curious about a subject, they go online – the majority say the internet has changed how they get information about products and services (83%), that it’s the first place they look when they need to find out something (76%), and that it’s increased their desire to learn and search for information (69%)
• They’re mobile-savvy as well – 8 in 10 use their cell phones in many different ways to get information
• 6 in 10 say they rely on TV to keep them informed – and TV can also inspire them to look deeper into a subject (68% say that when they see something interesting on TV, they go online to find out more)

They skew more female, educated, and employed. They’re more likely to be parents, too.

• Compared with Hispanics 18-34 overall, Life Planners are more likely to be female and bilingual
• They’re 45% more likely than the Hispanic 18-34 population to have some college education
• They’re also more likely to have a job, and to make more money (average personal income is 20% higher than Hispanics 18-34 overall)
• Parenthood may be an inspiration to get their financial houses in order (46% are parents, 114 index vs. total Hispanics 18-34)

Source: Tr3s “Work and Play” Hispanic Adult Millennial Study (2014), Experian Simmons Spring 2013 NHCS Adult Study 12-month