Building Multigenerational Wealth: Addressing Financial Literacy Gaps in Hispanic America
December 20, 2024
By Gabriela Alcantara-Diaz – Founder, President / SEMILLA Multicultural, Inc.
A 2023 Pew Research Center survey reveals that financial literacy is essential for upward mobility. However, significant gaps persist across racially and ethnically diverse groups, with Hispanic households facing some of the most prominent challenges in accessing financial education, despite growing interest. While 72% of upper-income Americans report knowing “at least a fair amount” about personal finances, confidence and knowledge remain uneven—particularly for Hispanic households, where opportunity meets unmet need.
The Digital Divide and Financial Education
Traditionally, family and friends have been the go-to source for personal finance education, but Hispanic Americans are charting a new path. Nearly half (48%) of Hispanics now turn to the internet for financial education—highlighting digital platforms as critical tools for financial empowerment. Unlike older generations who relied more heavily on personal networks, younger Hispanics are reshaping how they access financial knowledge. They are driven by the immediacy and accessibility of online content, from early adopters of social media platforms to increased video consumption and direct access through mobile-first platforms. According to eMarketer, “Hispanic users have a higher adoption rate than the total population on most leading platforms, with 73.4% using YouTube vs. 70.7% for the total population, followed by Facebook at 52.9% vs. 52.4%. They lead in Instagram with 52.3% vs. 39.8%. The predominance of multigenerational households may also play a role in digital video penetration, where Latinos exceed all groups with 81%.”
This shift to digital learning mirrors a broader trend: Hispanic families recognize that financial literacy is the foundation for multigenerational wealth. Yet, barriers to confidence remain.
The Confidence Gap
While financial literacy is growing, confidence in applying this knowledge lags among Hispanic Americans. The survey reveals:
- 21% of Hispanics are not confident in their ability to manage basic financial tasks—the largest percentage across all measured groups.
- Only 22% feel “extremely” or “very confident” in creating an investment plan—the lowest figure compared to non-Hispanic Whites, Blacks, and Asians.
These gaps signal more than a lack of information; they highlight a critical opportunity to address generational financial inequities. Hispanics, the backbone of America’s labor force and entrepreneurship, are actively seeking tools to secure their financial futures—both for themselves and for future generations.
Closing the Gap: A Marketing Opportunity with Purpose
For brands and institutions, this is a pivotal moment to connect with Hispanic households on their journey toward financial empowerment. The question is not if financial literacy will grow, but how—and who will help bridge the gap. Here’s how brands can play a role:
Educate Through Culturally Relevant Content: Engage Hispanic audiences with messaging that aligns with their values of family, legacy, and growth. Financial literacy campaigns should resonate at the intersection of culture, aspiration, and trust.
Leverage Digital Platforms: With nearly half of Hispanics turning to the internet for financial education, brands must meet them where they are—through relatable digital storytelling and trusted online resources.
Foster Confidence and Legacy-Building: Financial literacy isn’t just about knowledge; it’s about creating pathways to multigenerational wealth. Brands can lead by showcasing success stories and providing actionable tools for investing, saving, and planning for the future.
A Generational Imperative
The importance of building wealth across Hispanic America cannot be overstated. For a segment that contributes significantly to the U.S. economy—and whose growth will shape its future—financial literacy is not just an opportunity; it’s an imperative. Brands that champion this cause will not only build trust but will also become integral partners in securing a prosperous future for Hispanic America.
Hispanics are ready for the tools, knowledge, and confidence to build their legacies. The question is: Who will step up to help close the gap?
