Things That Matter

Don’t Tell White Supremacists, But Latinos Are Going To Drive Most Of The US Economic Growth

If it hasn’t already been apparent that Latinos are a big force in the U.S. economy, a new study argues that the group is the future for gross domestic product (GDP) growth. According to the Latino Donor Collective U.S. Latino GDP Report, which was prepared by California Lutheran University, the study says the economic contribution of the U.S. Latino community will become increasingly vital moving forward to the economy.

The study says that the GDP among U.S. Latinos made huge leaps within the last decade, up from $1.7 trillion in 2010 to $2.3 trillion in 2017. On a compounded annual basis, that’s the third-highest growth rate among all global economies in that period. GDP among Latinos also grew at a faster rate than the overall U.S. economy during those eight years. This can be mainly attributed to high labor-force participation, large population growth and increasing consumer spending.

The reports highlight the strides and economic growth that Latinos have had in recent years. More importantly, it makes the argument of how vital this population group will be to continue moving the U.S. economy as a whole. “Latinos currently are and will increasingly become a critical foundation of support for the new American economy,” the study says.

It’s no surprise as the Latino population has made an immense impact on the U.S. as a whole in the last decade, whether its through education, socially and now economically.  

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The study, which was released last month in concurrence with the L’Attitude conference in San Diego hosted by The National Association of Hispanic Real Estate Professionals, argues why these advancements are now finally being seen by Latinos. This generation of Latinos is expected to make some of the biggest contributions in the coming decades due to being well-positioned than previous generations. 

During previous waves, most notably the during the ’50s and ’60s, U.S. Latinos were more likely to be immigrants who worked in low-wage jobs in positions like agriculture and construction, according to David Hayes-Bautista, director of the Center for the Study of Latino Health and Culture at UCLA and an author of the study. Now, as the population group has settled in and has made social advancements, the Latino workforce is expected to be very different.

As these generational gaps increase, so does the median age of Latinos in the U.S. which is currently 46 years old. While on the other hand, their children’s median age stands at 19. This essentially means that this forthcoming Latino demographic is set to enter a workforce more prepared, whether financially or educationally, than any previous one. That can be attributed to having access to better schools and being native English speakers. Latinos have also made huge leaps in the last decade when it comes to getting a bachelor’s degree as the number increased by 51% from 2010 to 2017, while the non-Latino educated population grew by 21 percent. 

“Given robust population growth, high labor force participation, rising incomes, and strong increases in educational attainment, we expect the significant growth premium enjoyed by U.S. Latinos to be maintained in the years ahead,” said Matthew Fienup, executive director of the Center for Economic Research and Forecasting at California Lutheran University and one of the authors of the study. 

One thing is for sure, any success that the U.S. economy is going to have in the near future can be attributed to the advancements of Latinos as well.

Credit: Unsplash

Latinos are contributing economically now more than ever and this growth will only continue as the population does. The Latino population in the U.S. is growing rapidly, which in return has increased the group’s economic role in the country. Between 2008 and 2018, the Latino share of the entire U.S. population grew from 16 percent to 18 percent. Latinos also accounted for about half (52 percent) of all U.S. population growth over this decade. 

With a bigger population group that also means more people at work. The U.S. Census Bureau estimates than Latinos will account for an additional 30 million workers that will enter the U.S. labor force by 2060.  

This is all amounting to even more growth, socially and economically, when it comes to U.S. Latinos. We can only imagine what impact the next generation of Latinos will have on this country and the strides our people will have along the way. 

READ: A Newly Restored Version of The 90s ‘Selena’ Classic Film Starring Jennifer Lopez Is Coming To The Big Screen Again

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Investing Latina’s CEO Is Here To Tell You The Best Ways To Save You Money

Fierce

Investing Latina’s CEO Is Here To Tell You The Best Ways To Save You Money

Saving money and investing it properly is tough. It is hard to know where to take your money to make the most of it. Fortunately, FIERCE is here with another chat with a money queen to make sure that you get the most of your money.

Jully-Alma Taveras is here to help you reach your money-saving goals.

Saving money is tough. How much should you set aside? Where do you keep it to make sure it is safe? When should you start? Taveras started Investing Latina two years ago to help people figure out the best way to start their savings journey. There are a lot of things to save for from retirement to big purchases to emergencies. Here is some of what Taveras had to say when our very own Sam sat down with her.

Sam: “Let’s talk about savings. What would you recommend people do to start saving today?”

Jully-Alma Taveras: “Savings is kind of the beginning of it all, right? It’s kind of where we start laying down the bricks and foundation to our financial house. When I say laying down bricks, that’s really what I mean. I mean that they are small and heavy but they build up. That’s exactly how you have to think about how you start saving. It really starts small. Nobody starts with $10,000 in their savings account. Nobody. Everybody starts putting in $25 per week. Fifty dollars per month. Whatever it is that you can do. You have to be able to just kind of put it aside.

“I always recommend using a savings account first. Your core savings account at a bank that you can easily access if you needed to access your savings and then having a bulb of savings to a high-yield saving account so that you can also use the technology that exists right now with high-yield savings accounts. You can have little envelopes so you are saving for designated things. You can save for specific goals.

“I think that when it comes to savings, you really do have to set a big goal for yourself, and then you kind of start working backward. Then you’re like, ‘Okay. My goal is to save $10,000 in 2021. That’s what I want to get to. I want to be able to have my 1,000 immediate little emergency need savings account with just $1,000 and then I want to have the rest into a high-yield savings account where I can really start building my money confidence. That’s what happens when we start saving money.”

S: “One of the things I know that we started chatting about was high-yield savings accounts. Can you go into some more details about what exactly that is for everyone?”

JAT: “When we talk about a high-yield savings account, it really is a way for you to put savings into a bank or institution, or nowadays it’s really just an app sometimes. You put it in a place,  secure place that’s FDIC-insured place, where you can get a higher interest rate than what typical savings accounts offer. When you open up a checking account, you’re automatically, or usually going to get the option of opening a savings account with our bank. The retail banks that we typically use, the ones that we can walk into, that we can have ATM cards you can easily access and have teller access are usually positioning themselves where they offer retail services.

“What happens with that is that they don’t give you a lot for holding onto your money. They’ll offer something like a free checking account or a free savings account. They won’t charge you for it depending on what category you’re in, especially teens or if you are in school. You can definitely get a free checking account. But, they won’t give a higher interest rate than likely .02 percent. What a high-yield savings account offers is a higher interest rate. These are usually with banks that you don’t normally see as you walk down Main Street in your neighborhood. We aren’t talking about the Chases the TD Banks the Citi Banks, right? These banks that we know and are familiar with because we see them on Main Street. We see them in our neighborhoods. They’re not typically going to have a high-yield savings account. They want you to just use their services, their savings accounts, and their checking accounts. That’s it and they’re just going to be happy holding on to your money while you transact and do what you have to do with your money.

“With high-yield savings accounts, those are typically going to be with banks that don’t have retail stores. Some examples are Marcus by Goldman Sachs. SoFi, which is one of my favorites because of the tech that they’ve implemented in their app and their website. Ally Bank. These are banks that we typically won’t see actual physical banks of but they do exist online.

“What they do, mechanically, just so you kind of understand what happens when you put money into a high-yield savings account, is truly, they’re actually, putting all of our money together and they’re kind of investing our money behind the scenes. That’s what happens. You have the security of your digitized dollars and you will never lose it because it’s not an investment account.

“That’s basically what’s happening. Just so you know. You can feel safe that your money is there. It’s FDIC insured or it is completely insured up to the $250,000. That’s typically what we get insurance on. Then you also make a little extra so you make a couple of dollars every month.”

Taveras has so much more to say about saving and investing. Watch the full video below!

READ: In The First Episode Of FIERCE’s ‘Money Moves,’ We Explore The All-Important Budget

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In The First Episode Of FIERCE’s ‘Money Moves,’ We Explore The All-Important Budget

Fierce

In The First Episode Of FIERCE’s ‘Money Moves,’ We Explore The All-Important Budget

Finances can be hard. A lot of us were never told how to properly budget because our families weren’t equipped. Fortunately, in the 21st century, we can connect electronically with other Latinos and Latinas who are making money moves. In the first episode of FIERCE’s “Money Moves,” we talked with Beatriz Acevedo, CEO and founder of We Are Suma, a new financial literacy media company.

We Are Suma is a new company that wants to teach you how to make the most of your money.

Financial literacy is so important in creating generational wealth. It is an important step to being financially comfortable. CEO and founder of We Are Suma Beatriz Acevedo wants to help all Latinos and Latinas reach their financial goals. The most important place to start is creating a good and manageable budget. We sat down and spoke with her about what to do to make that happen. Here are some of her insights.

Sam: What would you recommend in terms of knowing what I need to get financially fit?

Beatriz Acevedo: Well, listen. Because we are here in a group of Latinas, like I said earlier, there’s certainly a lot of particularly incredible, amazing Latinas that do these seminars and these course. I have made my list of the ones that we already work with and really love. One that we have as our Latina in residence right now giving us a lot of this coaching is Jen Hemphill and she has a podcast called ‘Her Dinero Matters.’ So constantly, if you follow them, they have their social media, they have the things that they do. We mentioned Julie from Investing Latina that you guys will have on. Also, she does these seminars where they are made for our community. It just doesn’t feel as dry as when you read content or you go to a class and are like, ‘Oh my god. I feel so out of place here with the words that they are using the expectation that i already know this.’ No. This if for our community by our community. Latina Money. We’ve done some collaborations with her as well for equal pay. She’s awesome. Snowball Wealth. If you have student debt, they definitely specialize. Dana is your girl who specializes in how can you lower that. How can you start paying off your student debt?

All these are amazing Latinas that want to support our community and what they do every day is that. Obviously for us at We Are Suma, we do it in a very fun pop culture kind of way as well. So, five years ago if you asked me this question, I’d be like, ‘I don’t know.’ Today, there are so many resources and just with the ones that I mentioned that you guys can find right here on Instagram.

All of those resources are great. They’re easy to understand and again they’re made my women in our community so they understand where we came from and they understand that we did not have those conversations growing up, that we’re going to need to catch up.

S: What should they take a look at when creating a budget? Is it kind of like consolidating everything that they have and writing down a list?

BA: It’s a very easy thing to do nowadays. I remember when my dad would always tell my mom, ‘¿Donde esta el presupuesto?’ He knew that el presupuesto was very important because my mom and I are enthusiasts of la Marshalls y la Ross. Like, ‘Look, it’s only $9.99.” But, then, they can add up. So, I remember her so vividly in the kitchen, the poor woman, doing these budgets for my dad or for the household in these yellow pads. She was like, Food and this and Gas and all of this other stuff and adding it up. Nowadays, it’s so easy. there are so many apps that you can use. Even from the resources from all of these other Latinas that I mentioned earlier, some of them have these.

I know Snowball has one of these and I’m sure most of them do. It’s free tools where you can go in and you plug in and it helps you to track all of your expenses. There’s also very sophisticated apps that I like to use and it is the preference of people that very easily let you see how much do you make. It’s very important to know how much you make. You make a budget for $10,000 and you make $5,000, that’s not gong to work out, even if you have a beautiful budget.

S: Could you share some of the apps that you personally use or that you would recommend?

BA: Mint is the most popular one from all of the surveys. People really love it. I’ve never used Mint personally, but it must be great because people love it, and is the overall best one. I use PocketGuard. I don’t know how I discovered it or why, but I like it and that keeps you from overspending. It’s almost like, ‘Oh, you’ve reached this. Or you’re spending $5 more this month than you spent this month. It is always sort of alerting you. I’m sure all of them alert you if you are going over the budget that you have.

There’s one that people love that I just learned about that’s called You Need A Budget. That’s the one that people say is for the Type A personality so I need to look into that. It is on this principle of zero-based budgeting, which means that you give a job to every cent that you make. You don’t leave anything up to chance. Even if you are going to put something into retirement or to invest. You make $10 and your budget is at $10. It’s depleted so there is never anything left either under or over that could be a great area. A lot of people really like this You Need A Budget app that I still have to check out.

We were also talking about the envelope method. I learned about that a long time ago in my previous life when I was a tv producer. We were doing this show for Discovery channel where we would go into Latinos homes that needed almost a financial intervention because they were in bankruptcy. They had a mess with their finances. You would walk into their houses and they would have the most unbelievable TVs, VR sets before VR was popular. You’re like, ‘Oh my god. What are you doing, dude?’ I remember that our financial adviser at the time told the woman like, ‘Señora, you’ve got to cut off your credit cards.’ The woman was crying cutting up her credit cards but she had maxed out so many credit cards buying clothing for the daughter. The guy had bought all of these electronics. It was crazy. Then I remember that it seemed pretty prehistoric, right, because I was, ‘Really? You’re going to go put money into an envelope?’… I was reading that there is one called Mvelopes and that sort of mimics that but in the digital world.

Make sure you watch the full interview below for all of Acevedo’s tips to growing your wealth.

Make 2021 the year to become financially fit! You have the power to dictate what happens with your finances.

READ: Do You Combine Finances With Your Spouse? Latinas Answered!

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