Latin Heritage Month: by the numbers and beyond
Photo by Luis Zambrano
Throughout September and October, North Americans celebrate the histories, cultures and contributions of those with ancestry from Spain, Mexico, the Caribbean, and Central and South America.
In the US, National Hispanic Heritage Month runs from September 15 to October 15, while Canada celebrates Latin American Heritage Month throughout October.
This period holds special significance for Latin cultures: September 15 marks the independence anniversaries of Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua, while Mexico and Chile celebrate their independence on September 16 and 18, respectively. Columbus Day, or Día de la Raza, is observed on October 12.
There are almost 64 million Latinos living in North America. 62.5 million in the US – about 20% of the population, and 1.2 million in Canada – about 3.5% of Canadians. Latinos are leading the pace of population growth on both sides of the border.
Economically, Latinos are making significant strides as well. In the U.S., Latinos’ economic output is estimated at $3.2 trillion, which would rank as the fifth-largest gross domestic product (GDP) in the world if Latinos were an independent country.
However, amid these impressive numbers, as we celebrate Latin Americans in North America, we should also take the opportunity to reflect on the challenges many in these communities face, particularly in banking and financial literacy.
For many Latin Americans, the journey toward full financial inclusion is obscured. Research from UnidosUS and Oportun, BSP Research, shows that Latinos face language and experiential obstacles—such as negative past interactions with financial institutions—along with economic challenges like high fees and rates. Structural issues, including racism, discrimination and difficulty building credit, further complicate access to fair financial services, leaving many vulnerable to predatory lenders.
Key findings of UnidosUS and Oportun, BSP Research's banking and financial health survey:
Economic concerns
Many Latinos are worried about meeting next month’s rent or mortgage payments65% of low-income Latinos (earning $29,000 or less) and 66% of young Latinos (aged 25-39) are particularly concernedLack of income, rising housing costs, and increasing day-to-day expenses are top concerns
High banking fees
Over half of Latinos have paid fees for financial services, with 30% paying overdraft fees and 25% paying late feesMany are paying hundreds in fees yearly, with 35% paying $250+ in card fees
Use of alternative financial products
56% of Latinos have used high-cost alternative financial products such as payday loans or check cashersNewer products like Earned Wage Access (EWA) and Buy Now Pay Later (BNPL) are also being used to cover regular expenses
Lack of access to banking and credit
Costs, trust issues, and high bank fees are major barriers to having bank accountsLow-income respondents have the highest unbanked rates (19%) and the lowest credit card ownership (33%)
Debt burdens and low savings
Student, mortgage and medical debt are significant burdens, with 53% of young Latinos carrying high mortgage debtMost Latinos have low savings; 62% have $400 or less for emergencies and 56% have under $40,000 in retirement savings
Credit unions have a unique opportunity and responsibility to do more in creating inclusive and accessible services tailored to Latino communities, particularly in combating the rise of predatory and secondary lending, which disproportionately impacts Latinos.
A key part of the strategy should involve prioritizing financial education as a tool for empowerment, ensuring that both credit union members and non-members alike have the knowledge and resources to navigate financial systems, build credit, and avoid secondary financial sources.
A widely utilized program in the credit union community across North America is our own, It's a Money Thing. This professionally designed and highly engaging financial education program includes select Spanish language topics and is tailored for both online and offline learning. It provides an adaptable and effective solution for educating Latino communities. By equipping these communities with the right tools, credit unions can foster greater financial inclusion and contribute to long-term economic security for all.
Read more about how predatory lending impacts Latino communities:
Read more about credit union strategies to combat predatory lending:
Tim McAlpine is the Founder & CEO of Currency Marketing. He is best known for developing the It's a Money Thing Financial Education Program that credit unions from around North America are using to connect with new young adult members. He is also a driving force behind CUES Emerge, an emerging leader program that combines online learning, peer collaboration and an exciting competition component.
