Did you know that the percentage of unbanked and underbanked families is higher among the Hispanic community? 21.8% of Hispanic households are unbanked, while 29.3% are underbanked. Statistically speaking, Hispanic families are the least prepared group for unexpected expenses and emergencies, and given the current situation in this country, this leaves these families in a very vulnerable state. (Based on 2017 FDIC National Report of Unbanked and Underbanked Households)
It has been well documented that as the US becomes more diverse, wealth disparity tends to widen along racially and ethnically divisive lines, often hitting the Hispanic communities hardest. Some of the main drivers of this uneven distribution of wealth can be attributed to a lack of basic financial literacy among many members of the Hispanic community and a lack of awareness of how to access and benefit from the formal financial system.
The lack of accurate information and access to basic financial services in our society is a persistent problem faced by Latinos. In general, the lack of information on existing services as well as on how to manage one’s resources, deprives Hispanic families from economic opportunities and social mobility, impeding them from reaching the financial stability and security they strive for.
This deficit fuels the cycle of poverty and deprives low-income Hispanic individuals and their families from economic opportunities, prevents them from reaching financial security and stability, puts them at risk of scams, fraud and financial abuse, and hinders their full integration into US financial system.
That’s why financial education is an opportunity for these families to make a difference between fighting everyday to just get by, and having the basic knowledge that allows them to plan and make better decisions for the future. Financial education enables the Hispanic community to achieve their financial goals through better financial management and the security of knowing they have the tools to benefit from their hard work in the long run. By teaching families through workshops how to open bank accounts, apply for loans, and protect their finances, they can become more economically stable and strive for a better future.
The Hispanic community in New York is faced with high levels of vulnerability, little knowledge of financial or banking institutions, and without much financial education, suffer a difficult reality: few know how to manage their hard-earned financial resources and they are also faced with a language barrier that makes it difficult to comprehend a formal banking system.
Without reliable information on how to take advantage of the complex financial system, Hispanics often fall prey to fraud and financial abuse and thus resort to an informal financial system, which for the most part, are more insecure, costly, and the disadvantages outweigh their benefits. Their limited English language skills and little understanding of financial instruments such as credit, the formal and informal banking system, among other factors, also hampers their full integration into US financial systems.
Through our financial education program, participants can learn about basic financial management skills, including effective communication within family members, how to develop and maintain a budget, what the difference is between savings and insurance and how to access credit, among other topics. Participants begin to act on this information, with the objective of improving their personal finances and achieving better opportunities for their families. Our workshops offer a safe space to have open discussions over the societal and economic barriers that often inhibit immigrants from realizing their true potential.
As one of our participants said “financial education helps us to avoid getting in the way of the dreams of our children.”
Some of the main drivers of this uneven distribution of wealth can be attributed to a lack of basic financial literacy among many Latinos and a lack of awareness of how to access and benefit from the formal financial system.
Some of the main drivers of this uneven distribution of wealth can be attributed to a lack of basic financial literacy among many Latinos and a lack of awareness of how to access and benefit from the formal financial system.
Isolated from organizations and institutions that they trust, this deficit fuels the cycle of poverty and deprives low-income Hispanic individuals and their families from economic opportunities, prevents them from reaching financial security and stability, puts them at risk of scams, fraud and financial abuse, and hinders their full integration into the US financial system
Since 2007 Qualitas of Life Foundation has provided financial education to more 13,478 families, impacting around 60,651 people.
Over the past ten years, Qualitas has evolved from a small volunteer-run organization to a well respected and sought out nonprofit community partner. In order to reach the broad and diverse Hispanic community we have expanded into New York, including all five boroughs, New Jersey, Vermont, Massachusetts, and Connecticut. We also partner with organizations in Massachusetts and Vermont to help support and educate the Hispanic communities throughout. We have provided more than 160 hours of training to 40 facilitators and created over 50 strategic alliances to better reach the Hispanic community.
Participants
Impact
Participants
Our participants
- 73% are women.
- 79% are between 15 and 44 years old.
- 55% have been in the US between 5 and 20 years.
- 95% do not have health insurance.
- 32% have participated in informal financial systems.
- 80% did not know what APR means.
- 69% did not know what kind of information is in a credit report.
- 52% did not know the difference between a checking account and a savings account.
Impact
In the evaluation conducted in 2016 we identified changes and improvements to knowledge, attitudes and behaviors of our participants due to their attendance at the workshops:
Impact of the Program
- The majority of participants established a new financial goal.
- 75% of participants are able to distinguish between financial needs and desires.
- Establish priorities and realistic limits on their spending.
- Learn how to calculate their annual percentage rate.
- Learn to administer their debit and credit cards in a more financially responsible way.
Our sponsors and allies
