Valley Hispanics tend to say they're less financially savvy and are more likely to use payday lending or other non-bank services than non-Hispanics, according to a "financial literacy" study conducted by economists at California State University, Fresno.
"Financial literacy is relatively low among all Americans, but national studies tend to see a particularly fragile relationship between the Hispanic community and traditional financial institutions," said Janice Peterson, one of the study's authors.
The study represents the results from a telephone survey of more than 1,300 Valley residents this year. Researchers hoped to learn more about budgeting, spending, saving, borrowing, retirement planning and other financial habits in the Hispanic community.
Peterson, a professor of economics at Fresno State and co-director of the university's Center for Economic Research and Education of Central California, said researchers weren't surprised by the findings, which included:
More than 20% of Hispanics said they never had a bank account, compared with fewer than 1% of non-Hispanics.
Fewer Hispanics (55%) than non-Hispanics (65%) reported that banks were their most usual source for borrowing a large sum, such as $10,000. More Hispanics (20%) than non-Hispanics (8.4%) said family was their most usual source to borrow a large amount.
More Hispanics (12%) than non-Hispanics (5%) had used a payday lender. Hispanics reported using such services an average of 8.2 times per year, compared to 3.5 times per year for non-Hispanics.
The study was funded in part by the United Way of Fresno County, which runs the Bank on Fresno initiative to boost financial education, and by Wells Fargo Bank.
"This survey confirms what Bank on Fresno coalition members have been saying all along: There are a large number of Hispanic-Americans who utilize alternative financial providers," said Bank on Fresno coordinator Sevag Tateosian.
Tateosian said his group will use the information to work with banks and community organizations to find ways of reaching out to the unbanked with financial education programs.
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