Tag: positivism

And the Bucks Will Just Start Rolling In

I’ve written before about the intense, powerful, even bizarre sense of optimism prevalent among Hispanics.

Yes, even when fleeing for our lives from oppressive third-world governments and/or bloodthirsty drug gangs, we think, “Better days are ahead.”

And even when acres of statistics show how Latinos are struggling, compared to the general population, we say, “Keep the faith.”

And even when we become scapegoats for the nation’s ills, open targets for right-wing nutjobs, and the object of scorn in the eyes of millions of Americans, we smile and say, “Happiness is right around the corner.”

Well, if you thought that this pugnacious positivism had faded recently, a new survey shows that it has only gotten stronger, especially regarding financial matters.

For example, a solid majority of Hispanics “feel there is equal opportunity for everyone to achieve their dream of financial success.” But less than half of the general population feels the same way.

And 60 percent of Latinos believe “that those who work hard will be the most financially successful, a significantly higher percentage than the general population.”

Finally, there is the statistic that Latinos are more likely to believe that they are on their way “in their race to financial success” than the general population.

But is all this faith in the future based in reality?

Well, consider that the same survey found that “by their own admission, Hispanics struggle with managing their money and lack self-confidence when doing so.”money

OK, that seems a little contradictory — as does the fact that “a majority of Hispanics give themselves a grade of C or lower when evaluating how well they manage their money.”

And let’s consider that a full 70 percent of Hispanics “have not created a long-term financial plan.”

So once again, we are forced to ask, is all this optimism priming the pump for a self-fulfilling prophecy where Latinos are financially successful?

Or have we Hispanics turned into collective Navin Johnsons, insisting that “Things are going to start happening to me now”?

navin_r_johnson_xlarge

 

Well, maybe the most telling — and most hopeful — data point in the survey is this: Millennial Hispanics (age 18-39) are more likely “to see an undergraduate degree as one of the top influences for financial success.”

Now that makes sense. Getting a degree is a solid, realistic option for achieving financial success. Young people know this.

And what do older Latinos think is key to financial independence? It is, of course, “the advice of elders.”

Yes, better stay in school, kids.

 


Put It on My Tab

A friend of mine once cut up her credit cards and closed her accounts because, she said, “those pieces of plastic are evil.”

creditcards

I thought this was a bit overly dramatic (she was that type of person). I also thought it was convenient to blame her chronic debt on inanimate objects rather than, say, her nonexistent self-control and materialistic tendencies.

In any case, we all know people who live beyond their means, and it’s true that many individuals teeter on the edge of bankruptcy because of their shopping addictions or love of new shoes or willingness to fly first-class to Italy for the hell of it.

But a recent study has found that when it comes to Hispanics, living large is often not the reason for going into the red. The study found that almost half (43%) of Latinos who have credit card debt depend on the plastic to pay for basic living expenses. And a significant chunk of the rest are using credit cards for tiny splurges at best.

So if Latinos are not slapping down credit cards on impulse buys and charging luxury items, why are they in so much debt?

Well, Hispanics report that the main reason for their debt is the loss of a job, and they’re more likely than other groups to say that medical costs also contributed to their financial issues.

The researchers theorize that because Latinos lost so much of their wealth in the Great Recession, they’re having trouble restocking checking or savings accounts. So putting basic items or medical expenses on credit cards often seems to be the only option.

This, of course, sucks. But as is often the case, the survey also found that Latinos are more optimistic than the overall population. So they’re more confident about paying down their credit card debt quickly.

This optimism, which borders on delusion, leads to some interesting contradictions.

For example, another poll found that almost half of Latinos (49%) said they were worried that someone in their household might become unemployed soon. Yet the same survey found that almost three-quarters of Latinos (73%) are optimistic about their finances and future opportunities.

Frankly, that’s a bizarre balancing act of fear and hope.

But maybe these results just show that Latinos are still jumpy about their financial status, years after the economic meltdown. The Great Recession so ravaged Hispanic households that many Latinos are leery about declaring that the worst is over.

At the same time, Latinos tend to be more optimistic than other groups about their future. The main reason for this positivism seems to be the immigrant mindset. Many Hispanics remember struggling in their home countries, or they hear the harrowing tales of their parents. As such, these Latinos usually have more faith in the American system and a stronger belief that their financial situation will improve.

We should all really, really hope they’re right.

 


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