PITTSBURGH: Hispanic millennials are more likely than other groups to say they are financially better off than their parents were at the same age and to carry less debt than non-Hispanics, a new report has found.
The PNC Financial Independence Survey, from PNC Financial Services, polled 3,288 participants aged 20-29 online, including 588 Hispanics, and uncovered a number of insights
into the financial mindset of this age group.
It found that 57% of Hispanics thought they were better off than the previous generation, compared to 52% among whites and 50% among African Americans.
In addition, Hispanic millennials carried around $10,000 less debt than non-Hispanics; almost one third (31%) had no debt at all.
In part this may be due to cultural factors, as Hispanic millennials are more likely to continue living with their parents, with 45% doing so compared to 39% of non-Hispanics. "It's a way to pay off debt while you're still finding your footing in life," said Mekael Teshome, PNC economist.
"Getting this emotional, financial and cultural support from their family solidifies why Hispanic 20-somethings feel like they are better off than their parents," he added.
Even so, 72% of Hispanic 20-somethings felt that paying their own living expenses was essential to achieving financial independence, but only 41% had achieved that.
And while most tended to be optimistic about their future, that outlook started to wane when they had to think about issues like saving enough for retirement (61%) and growing money through investments (58%).
In addition, Hispanic Millennials found financial issues stressful. Teshome noted that a perceived lack of financial security (24%) and the uncertainty of finding a job (17%) were factors that slowed the process of becoming financially independent.
Considering the overall findings, he observed that "20-somethings have generally very similar expectations and objectives, regardless of their ethnicity, except when cultural values come into play".
That view chimes with other research, such as that from Packaged Facts which reported that almost 40% of adult millennials
were members of multicultural population groups, "spearheaded by US-born 'fusionistas' who move effortlessly between their Latino heritage and the youth culture of America".
And the Warc Trends – First Movers
report highlighted the rise of multicultural marketing while noting that Hispanics usually preferred "culturally-based" ads to those with a broader approach.
Data sourced from PR Newswire; additional content by Warc staff