Hispanic Investors Prioritize Financial Literacy: Wells Fargo Report

The financial education industry was emboldened by the results of a recent Wells Fargo study in which ninety percent of respondents reported that while their parents talked “a lot” or “sometimes” about the importance and value of hard work while they were growing up, their parents talked less, if at all, about financial and money management.

The results of the Wells Fargo study are consistent with the longtime sentiment of financial literacy professionals who have been saying for years that personal finance topics are not sufficiently discussed at home, in schools, or in other learning environments for youth. The report also detailed that more than 75 percent of Hispanic investors wish they had learned about money management during their formative years, while some 70 percent desired a better understanding of investment topics, such as mutual funds, stocks and bonds. Moreover, roughly 50 percent of respondents reported that they had no education at all regarding saving and investing.

Data generated by the Wells Fargo survey also demonstrated that Hispanic investors tend to be relatively conservative and risk-averse with respect to their investment decisions. Specifically nearly 50 percent chose to put money for the future into savings with no risk of losing it and 56 percent claimed to feel that the best place to keep their savings is in bank accounts or real estate. At the same time, 54 percent consider themselves fairly knowledgeable about financial products and investments, while 27 percent said they are not very knowledgeable at all about money management.

Based on the results of the Wells Fargo survey, many financial educators are promulgating not only that greater financial education is needed among Hispanic students, but also that the findings are likely consistent with the experience and financial education status of many other groups. As such, they say, financial literacy remains a key educational, social, economic and political challenge and necessity to best position our next generation of young people for future financial success.