Financial Literacy among U.S. Hispanics: New Insights from the Personal Finance (P-Fin) Index
Using data from the first wave of the TIAA Institute-GFLEC Personal Finance Index, this report examines financial literacy among Hispanic adults in the United States.
The authors’ analysis shows that Hispanics’ personal finance knowledge is generally lower than that of the overall U.S. adult population. The difference is prevalent across all demographic groups, except for young (ages 18-34) U.S.-born Hispanics, whose financial literacy is close to that of young non-Hispanic whites. The report findings also show a notable difference in financial literacy within the Hispanic population, with higher levels among U.S.-born Hispanics compared to those born elsewhere. This within-group difference cannot be attributed to differences in underlying demographics, as the finding is consistent when accounting for age, education and income.
The TIAA Institute-GFLEC Personal Finance Index (P-Fin Index) is a survey-based assessment of knowledge required for sound financial decision-making and effective management of personal finances. The first wave of the survey was fielded online in September 2016 with a nationally representative sample of U.S. adults age 18 or older. Hispanics were oversampled during the survey fielding, with 1,018 participating. Respondents were given the option of taking the survey in Spanish or English.