4/5/2004 - NCLR AND STATE FARM TEAM UP TO DEVELOP A PERSONAL FINANCE GUIDE FOR LATINO FAMILIES

For Immediate Release
March 27, 2004 Contact: Christy Martinez
Brenda Y. Muñiz
(202) 785-1670

Washington, D.C. – In an effort to improve financial security and economic opportunities for Hispanic families, State Farm Insurance and the National Council of La Raza (NCLR), the largest national Hispanic civil rights organization, teamed up to develop a guidebook and videotape entitled, Securing Your Family’s Future: A Personal Finance Guide for Latinos.
Latinos are participating in the workforce at record levels resulting in higher incomes and declining poverty for many families. As a result, Hispanic purchasing power continues to rise at an extraordinary rate, which now exceeds $585 billion annually, nearly triple the 1990 level. Yet, despite a strong work ethic, entrepreneurial spirit, and a deep desire for greater prosperity, the financial picture is not so bright for Latinos. In terms of financial assets, Latino families maintain only 4% of the wealth of the average White family. This financial education tool seeks to address this large disparity in wealth. The guidebook and video, available in English and Spanish, will serve to empower Latino workers seeking to purchase their own homes, save, invest, and build wealth and financial security for themselves and their families.
NCLR has long had concerns, along with many other leaders working with the financial services industry and credit bureaus, about the myriad of credit-related issues that low-income Latino families are experiencing. Latinos, on average, pay higher insurance premiums and interest rates on loan products, such as mortgages and car loans. They are often steered into those financial markets that charge more for credit. All too typically Latino workers have no credit or thin credit files because many are reluctant to accumulate debt or are unfamiliar with the role of credit in the marketplace. Even for those with a considerable credit file, inaccuracies and errors are commonplace.
The guidebook encompasses many of the key elements of a useful, “reader-friendly,” and interactive tool for families. It recognizes the diversity of the Latino community and includes a range of topics for those with differing levels of financial knowledge and distinct financial needs. In particular, information was developed to be helpful for low-income and immigrant Hispanics. For example, a significant amount of information on how to open a bank account is provided for those with little exposure to financial institutions. On the other hand, information on investment products is included for people who have considerable knowledge but perhaps not much experience with investing. Also, language was designed to promote and empower Latino families to protect themselves against unscrupulous entities in the market, such as predatory lenders.
Carefully targeted outreach efforts will effectively connect hard-to-reach Latinos to this important financial tool, thus empowering Latinos to become their own best financial advocates.
Copies of the guidebook and videotape entitled, Securing Your Family’s Future: A Personal Finance Guide for Latinos. are available free of charge by calling Pamela Rodriguez at (202) 785-1670, or email her at prodriguez@nclr.org .
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