Presentation contains useful statistics and information on Hispanic business and financial wellness habits

1. Hispanic Financial Planning
Michael Barrera
National Manager Economic Prosperity
The LIBRE Institute
www.thelibreinstitute.org

2.  The LIBRE Institute is a non-profit, non-partisan C3 organization.
It is committed to strengthening America and building
prosperous Hispanic communities through Our Four Pillars that
focus on Economic Prosperity, Education, Faith, and Family
 Surveys indicate that Hispanics want more information on
personal finances and entrepreneurship.
 Economic Prosperity Pillar seeks to increase the U.S. Hispanic
community’s knowledge of Financial Wellness and
Entrepreneurship thereby increasing independence, self
sufficiency and prosperity.
 Independence and self-sufficiency create Freedom and Freedom
Drives Progress
What is the Institute?

3.  There are an estimated 54 million Hispanics currently residing in
the US
 66,000 Hispanics turn 18 every month or almost 800,000 a year
 Hispanic households (49%) more likely to have children under 18
vs. general population (34%)
 The population is expected to grow 167% from 2010 to 2050 vs.
42% growth for the total population.
 By 2020, 30.5 million Hispanic will enter the labor force nearly
tripling the 10.7 million reported in 1990
 It is estimated Hispanic spend over 1.3 Trillion a year
Hispanics-A Growing
Community

4. Hispanic Short and Long Term Financial Priorities
-Reduce Debt 52% vs. 50% G.P. (General Population)
-Building emergency Savings Account 42% vs. 41% G.P.
-Having enough life insurance to protect loved ones 23%-21% G.P
-Saving for a Major Purchase like a car, appliance or vacation 21% vs. 20% G.P.
-Leaving Inheritance for children or other heirs 17% vs. 17% G.P.
-Saving for Retirement 53% vs 62% G.P.
-Protecting investments/Savings 25% vs. 47% G.P.
-Saving to purchase a home 23% vs. 13% G.P.
-Funding education for children/grandchildren 31% vs. 18% G.P.
-Caring for Elderly family members 15% vs. 6 % G.P.

5. Other Financial Considerations
• Household expenses, health care costs, children’s education, savings
and debt level—all near-term concerns—are ranked as higher
concerns than retirement.
• Family finances are often multigenerational and global, as evidenced
by 1 out of 6 supporting parents and 42% of non-U.S. born sending
money to relatives in their home country.

6. Hispanic Financial Stats
• Total Assets for those earning under $75, 000
• $33,000 vs $97,000 for General Population (GP)
• Total Assets for those earning over 75, 000
• $104,000 vs $ 237,000 for GP

7. Hispanic Business Stats
 According to the Survey of Business Owners by U.S. Census there are
approximately 3.3 million LOB or 12% of all businesses.
 According to 2015 Kauffman report, in 2014 Latinos had the highest rate of new
entrepreneurs
 According to Stanford Latino Entrepreneurship Initiative nearly 50% of Latino
entrepreneurs believe additional capital is a key to their future business growth.
 22% have never heard of the SBA
 Latinos were more likely to rely on credit cards and friends for capital than non-
Latinos, and more than 90 percent expressed serious concerns about
relinquishing equity in their businesses

8.  Only 37% of Latino entrepreneurs responded that external market
opportunity was a key inspiration for becoming business owners. Instead,
Latino business owners point to reasons based on internal impact—building
something to pass down to children, parents or family members, working
with family or friends, or having control of their financial future.
 When it comes to ownership, the results show that LOBs are predominantly
family owned with only 8% non-family ownership, compared to 15% of
NLOBs.
Hispanic Business Stats

9. National Debt
• According to Forbes U.S. debt = 10 trillion in 2008
• 2015 =18.2 Trillion dollars and by 2019 expected to be 20.6 trillion
• 93k per person in 2008; 161k per person 2019
• Higher taxes, Lower wages
• Lower standard of living
• Student loan debt is 1.3 Trillion dollars
• Hispanics whose average age is significantly lower will bear burden of
increased debt
• Big Difference between debt and deficit
• Personal and Family financial planning becomes even more important

10. Healthy & Wealthy Choices
• 70% of wealthy eat less than 300
junk food calories per day.
• 23% of wealthy gamble.
• 80% of wealthy are focused on
accomplishing some single goal.
• 81% of wealthy maintain a to-do
list.
• 76% of wealthy exercise aerobically
four days a week.
• 70% of wealthy parents require
children volunteer 10 hours or
more a month
• 67% of wealthy write down their
goals
• 6% of wealthy say what’s on their
mind.
• 97% of poor people eat more than
300 junk food calories per day.
• 52% of poor people gamble.
• Only 12% of the poor do this
• 19% of poor people maintain a to
do list
• 23% of poor exercise aerobically 4
times a week.
• 3% of poor make their children
volunteer 10 hours or more a
month
• 17% of poor write down their goals
• 69% of poor say what’s on their
mind!

11. Healthy & Wealthy Choices
• 67% of wealthy watch one hour or
less of TV every day
• 6% of wealthy watch reality TV
• 84% of wealthy believe good habits
create opportunity luck
• 76% of wealthy believe bad habits
create detrimental luck
• 86% of wealthy believe in lifelong
educational self-improvement
• 88% of wealthy read 30 minutes or
more each day for education or
career reasons
• 23% of poor 1 hour or less of TV
everyday
• 78% of poor watch reality TV
• 4% of poor believe good habit
create opportunity luck
• 9% of poor believe bad habits
create detrimental luck
• 5% of poor believe in lifelong
educational self-improvement
• 2% of poor read 30 minutes or
more each day for education or
career reasons