The second-largest racial or ethnic group in the United States is Latino/Hispanic, sitting at just under 19% in 2020. This number is expected to grow, and as Latino and Hispanic individuals make up a larger portion of the U.S.’s labor force, their economic power will grow as well. Amid this growth, Latino and Hispanic communities face various obstacles to building secure financial futures.
Vianessa Castaños at Money Geek expounds on this, saying, “Learning to save, predatory lending practices, and poor or insufficient credit history are just some of the major barriers that prevent the community from reaching financial stability. And when each of these factors compound, many find themselves in a situation where they are unable to invest their money and create generational wealth.”1
Employers have an incredible opportunity to provide financial wellness services specifically tailored to address the unique financial challenges and cultural factors of their Latino and Hispanic employees; providing a pathway to increased financial literacy, wellness, and long-term success.
Investing in the financial wellness of this community in the workforce demonstrates a commitment to their holistic well-being and helps build a more resilient and thriving employee base.
Here are the Top 5 ways employers can empower the financial wellness of their Latino and Hispanic employees:
Offer All Benefits in Spanish and Prioritize Accessibility: Ensure that all benefits information, including retirement plans, health insurance, and savings programs, is available in Spanish. In addition, consider home mailers and in-person education to best reach the unplugged population. Lastly, make sure there is access to Spanish-speaking service providers across all work shifts if needed.
Why It’s Beneficial: Ensuring that benefits information is available in Spanish makes essential resources more accessible and understandable for Spanish-speaking employees. This approach helps bridge language barriers, fostering better comprehension and engagement with the benefits offered. By using mailers, in-person education, and making services accessible across all shifts, employers build trust and demonstrate inclusivity, which can lead to higher utilization of benefits and improved employee satisfaction. If your employees are satisfied, they’re more likely to stick around for the long-term.
Provide Financial Wellness Workshops: Offer on-shift group education, on topics like budgeting, saving, investing, debt management, and retirement planning, tailored to address the unique challenges and cultural considerations of Latino and Hispanic employees.
Why It’s Beneficial: Financial wellness is not just about the retirement plan. Group education workshops tailored to address specific needs, such as managing financial resources within their cultural contexts, provide a space where employees feel their culture and experiences are valued. Further, on-shift group education
makes learning accessible and convenient, which can enhance employees’ financial literacy, promote better money management practices, and ultimately lead to greater financial stability and reduced stress.
Encourage Participation in Retirement Plans: Educate employees about the retirement plan and the importance of retirement savings. Offer easy enrollment options in the retirement plan and assistance registering for an account online. Consider specific plan design enhancements like automatic enrollment, auto-escalation, and employer-matching contributions to increase participation. If possible, schedule a mandatory individual session with a financial planner for each employee as they become eligible to save in the plan.
Why It’s Beneficial: Educating employees about the importance of retirement savings and simplifying the enrollment process encourages participation in retirement plans and can drastically improve utilization. Features like automatic enrollment, auto-escalation, and employer matching contributions have been shown to increase equity in retirement plan benefits for various marginalized groups.2 Lastly, by providing mandatory individual sessions with financial planners, employees receive personalized guidance, increasing their confidence and commitment to long-term savings. That means more of your employees will be ready to retire on time.
Promote Individual Financial Planning Sessions with Culturally Sensitive Providers: Provide access to Spanish-speaking financial planners who can offer holistic, personalized advice and support, while factoring in cultural attitudes towards money and family obligations, such as prioritizing family support over personal savings.
Why It’s Beneficial: Money can be a challenging topic to talk about, especially when people fear a lack of respect and understanding on the part of the advice-giver. Access to Spanish-speaking financial planners who understand the unique needs, backgrounds, and experiences of members of the Latino and Hispanic community allows employees to receive personalized financial advice that considers their unique situation, all within a safe environment. This tailored support helps employees balance personal savings with family responsibilities, improving their overall financial health and well-being. Personalized sessions also provide targeted advice, which can be more effective in addressing individual financial goals and concerns.
Support Continuing Education: Consider offering tuition assistance or reimbursement programs for employees seeking to further their education. This can help them advance their careers and improve their financial prospects.
Why It’s Beneficial: Around 15% of Latino and Hispanic households carry student loan debt.3 Offering tuition assistance or reimbursement programs supports employees in pursuing further education, which can enhance their skills, career advancement opportunities, and earning potential. Investing in employees’ education not only benefits them personally but also contributes to their professional growth and overall financial stability. This investment demonstrates the employer’s commitment to employee development and long-term success.
By implementing these strategies, employers not only address the specific financial education needs of their Latino and Hispanic employees but also foster a more inclusive, supportive, and engaged workforce.
Reach out to a financial wellness expert if you are interested in implementing a financial wellness benefit or looking for help enhancing your current financial wellness benefit offerings. Francis’ experts are here to support you and your employees’ well-being.
AUTHORS:
Liz Aidoo, Financial Planner, Director of DEI and Spanish Language Services. Winner of PLANADVISER’s 2024 Retirement Plan Adviser of the Year for Efforts in DEI. Bilingual: English/Spanish. Head of Francis DEI Committee. Email: elizabeth.aidoo@francisway.com.
Pedro Dominguez, Financial Planner. Bilingual: English/Spanish. Member of Francis DEI Committee. Email: pedro.dominguez@francisway.com.
Kasey Miller, Marketing Manager. Member of Francis DEI Committee. Email: kasey.miller@francisway.com.
CONTACT FRANCIS:
Joseph Topp, CPA, VP Investment Consulting Services. Email: joseph.topp@francisway.com. Phone: (262)781-8950.
David Mandel, VP Investment Consulting Services. Email: david.mandel@francisway.com. Phone: (262)781-8950.
Sources:
1https://www.moneygeek.com/financial-planning/resources-for-hispanics-latinos/
The information contained herein is provided for informational purposes only. The information provided is from sources we believe to be reliable, but we cannot guarantee its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Francis LLC does not offer personal legal advice.
