Building financial strength: This is how Latinos teach to generate wealth
Social networks have become educational platforms to learn how to move in the new economy.
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The new generations of Latinos, inside and outside the United States, are taking advantage of new technologies, not only to better manage their finances, but also to generate wealth through them.
Through digital platforms and applications that allow them to invest in stocks and currencies, including cryptocurrencies, 24 hours a day, a growing population of Latinos have learned to navigate the uncertainty and volatility of the markets to reap significant benefits.
Axios recently highlighted a group of young Latino financial experts who stand out, more than for their success, for their desire to share this knowledge to empower their communities to build solid capital that allows them to achieve a stable life.
Investing in stocks or opening retirement savings accounts has long been elusive for many Latinos, but social media and podcasts that offer culturally relevant financial coaching are turning that on its head.
The author of “Mind Your Money: Insightful Stories and Strategies to Help You Reach Your #MoneyGoals” highlights the importance of teaching the Latino population, not only to save money, but especially to learn how to invest it.
“Investing, for many of us [Latinos], is a foreign concept because we are told over and over to save our money. I never heard the word 'invertir.' I heard 'ahorra,’” stresses Espinal.
Espinal, who works for Next Gen Personal Finance, an organization that provides teacher training for financial literacy in high schools, is a financial expert and coach who spreads content related to financial advice through her social networks.
She also points to the importance of cultural values in the Latino community as a factor that has often limited their financial growth in previous generations.
"In my culture, my parents taught us that when you're hosting people, you are the last to eat. That's in direct opposition to American culture, where you take care of yourself first,” notes Espinal.
Stop worrying about which are the best "socially conscious" companies to invest in.— Charly J. Stoever (@travelercharly) July 15, 2023
In order to become publically traded, all companies have had to rely on some level of exploitation. You never know what is going on behind closed doors.
Socially conscious is just a label.
The finance coach, recognized for the advice “they/he/papi” shares on Instagram, points out another of the cultural aspects that stands out among the Latino community when it comes to growing their finances, and that is how many of the young clients go through temporary episodes of guilt for earn more money than their parents.
Stoever highlights the work he does with clients to set boundaries with families and demystify the world of finance.
"If you want to help a family member out, that's an investment. I help them think critically about their decisions,” assures Stoever.
The personal finance expert and content creator, who moved to the U.S. from Mexico as a child, emphasized how little information is available on how to help the parents prepare financially for retirement.
"This isn't just about me as an individual, this is about me and my family and wanting to share this with the rest of my immigrant family. What I dream about is that children of immigrants feel confident with key American financial concepts and can design happy financial lives for themselves and their families,” highlights Melchor.