Did you know that the American Latino community is not only driving the future of the U.S. economy but also shaping the way we think about financial success?
With a rapidly growing population and rising economic influence, Latinos are creating new opportunities for wealth-building, entrepreneurship, and financial stability.
But the key to unlocking this potential lies in one critical area: financial literacy. That’s the whole point here at Smart Latino Money – where I believe it’s important for our community to have greater and more diverse voices that reflect our own diversity, develop our financial literacy, and achieve greater financial stability, economic growth, and wealth.
The Latino Population and Economic Impact
So, why is all this important? There are some important indicators of why Latino financial literacy is important.
Population Growth: You’d have to be walking around blindfolded without noticing that Latinos are the fastest-growing demographic, with a younger population that will drive future labor force and consumer markets. We Latinos are energetic people who create vibrancy in every city, town, and rural area in which we live.
Spending Power: Latinos contribute significantly to consumer spending, especially in housing, food, and education, with growth expected in the coming years. Our spending is roughly $1.5 Trillion annually – or 10% of the domestic spending.
Latino Contributions to the U.S. Economy
Consumer Market: Boom! Latino households are key drivers in sectors like retail, housing, and automobiles.
According to the 2021 State of Hispanic Homeownership Report by the National Association of Hispanic Real Estate Professionals (NAHREP), Latinos added roughly 1.9 million new homeowners between 2014 and 2020, accounting for nearly 48% of the net growth in U.S. homeownership during that period. That’s no joke.
When it comes to cars and other vehicles, the trends continue. Exact numbers can vary by source and reporting year, but here is one often-cited data point:
Between 2010 and 2020, Hispanic consumers accounted for about 24% of the growth in new vehicle sales in the United States, according to IHS Markit’s “Hispanic Market Automotive Insights” (2021). The same report notes that Hispanic auto buyers registered approximately 1.25 million new vehicles in 2020—up from roughly 1 million in 2015—reflecting a 25% increase over that five-year period.
This statistic highlights the growing influence of Latino consumers in the auto market and underscores why many automakers and dealerships have focused more on serving the Hispanic community.
Workforce & Entrepreneurship: Latinos are fueling job creation and are increasingly represented in various industries.
One frequently cited statistic comes from the 2020 “State of Latino Entrepreneurship” report by the Stanford Latino Entrepreneurship Initiative (SLEI):
Between 2013 and 2019, Latino-owned employer businesses created about 474,000 net new jobs in the U.S.—making up 29% of all net new jobs generated by employer firms during that period.
This figure underscores Latino entrepreneurs’ outsized impact on job creation relative to their share of the overall business community. For the most up-to-date information, you can consult the latest version of SLEI’s State of Latino Entrepreneurship report on their official website.
And yet, the challenges exist.
Latino Money: Financial Challenges and Opportunities
Discrimination: Discrimination and racism – both subtle and overt, hamper Latino growth. Failing (for decades) to have an updated national comprehensive immigration policy and the continued demonization of immigrants have hampered growth and opportunities.*
Challenges: Latinos face financial obstacles such as limited access to traditional banking and wage gaps.
Promoting Financial Stability and Latino Community Growth
Financial Literacy: Teaching budgeting, saving, and investing helps Latino families build wealth, reduce debt, and increase homeownership, strengthening communities.
Inclusive Banking: Bilingual services and user-friendly platforms are making financial services more accessible and efficient for Latino communities.
Generational Impact: Financially educated Latino households pass on better opportunities to their children, creating long-term upward mobility and contributing to a more equitable society.
The Future Looks Bright For Latino Households
It’s important for Latino families to take advantage of resources to build wealth and financial independence, benefiting both themselves and their communities. Our hope is that Smart Latino Money can provide this support.
