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My mom used to say the funniest things, and what made most of them funny was the fact that they were rooted in truth. Like that time she informed me and my siblings: “I have enough money to last until the day I die … as long as I die tomorrow.”
Of course, I crack up every time I remember this—and her many other mottos or pieces of wisdom. But it also got me thinking. Unlike many families I came to be acquainted with years later when I moved to the US, we were never particularly aware of the importance of saving money, let alone setting financial goals and planning for the future.
Building wealth? That was something for the very rich—we thought—or at least for those who already have something to start building from.
I grew up in a struggling, lower middle-class family, with my single mother of four working two jobs to help ends meet. The extent of my “future planning” while growing up was more like get an education, get a job, pay your bills, and do your best to stay debt free. I cannot recall one instance in which my older relatives talked about building wealth so we could pass it on from one generation of a family to another.
Investing in stocks and funds? Buying property and maintaining a good credit score? Get outta here!
WARNING: Before you keep reading and/or ask this writer to stop whining and embarrassing her family and go get a financial education already, please remember this column was conceived to be handled with a serious dose of humor.
While I understand now that saving for the future—or at the very least be able to pay for my own funeral—is somewhat important, that’s also something that doesn’t come naturally to me.
Unlike most of my friends in the US, I don’t own property, I barely contribute any money to my 401(k), and I have a few savings in a bank account that renders next to zero in annual interest.
Apparently, I’m not alone.
According to a 2024 report from the Urban Institute, the wealth gap between white families and Hispanic ones reached a new high in 2022, with the average wealth of white families reaching a record high of over $1.4 million, compared to about $227,000 for Hispanic families. In other words: white families had six times the average wealth of Hispanic ones.
There are several reasons behind the wealth gap (inequitable access to credit, structural racism, etc.) but the good news is that, when it comes to home ownership (which is key to building wealth) things don’t look as gloomy. By the end of 2023, half of all Latinos in the US were homeowners—up from about 40 percent in 1994—and if things continue this path, between 2020 and 2040, 70 percent of net new homeowners will be Hispanic.
On the other hand, Latinos (yours truly properly included) have a long way to go when it comes to investing in stocks, buying life insurance, and attaining other assets that could ultimately increase our net worth. We also have, as a group, a much lower participation and allocation in retirement accounts, and for many families, the only thing we end up passing onto our children is a mountain of debt.
I guess it’s a good thing I don’t have any children to worry about or to pass onto my (nonexistent) wealth, but I’m starting to think that planning for the future, saving a bit more money, and perhaps even buying a home might not be such a bad idea.
In the meantime, I can proudly say I’m already a bit better off than my mom in that I have enough money saved to last until the day I die … as long as I die next month.
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Stay tuned for Laura Martinez’s next Hisplaining column, which will tackle other key biz terms and jargon and help leaders everywhere smoothly navigate the multicultural business world. In the meantime, send us tips and ideas for other terms and jargon that you’d like to see us feature. And remember: don’t panic . . . it’s just his-PANIC!
