Financial literacy is often treated as the missing step toward building wealth; however, knowledge alone may not be enough for many Latino households. With Hispanic Heritage Month just days away, findings from a 2025 Pew Research Center survey showing that 63% of U.S. Latinos described their finances as only fair or poor, paired with financial literacy reaching a 10-year low, make it worth understanding how Latino families can actually create wealth.
Financial Knowledge Is Only Part Of The Equation
As I have previously reported, financial education can teach people how to manage money, but it cannot by itself create disposable income, eliminate family financial obligations or change the experiences that influence how people respond to risk, debt and financial uncertainty. The TIAA Institute-GFLEC Personal Finance Index measures knowledge across areas including earning, consuming, saving, investing, borrowing, insurance, and risk. In its 2026 report, researchers found that financial literacy among U.S. adults had fallen to its lowest level since the index began in 2017.
Education, however, does not necessarily translate into financial capacity. Pew Research Center found that 35% of Latinos surveyed in 2025 had struggled to afford food during the previous year, while 30% had struggled with medical care and another 30% with rent or mortgage payments. About 48% had experienced difficulty paying for at least one of those three necessities. Even employment did not eliminate the strain: 30% of Latinos working full-time reported difficulty paying their rent or mortgage. A household can therefore understand the importance of maintaining an emergency fund while lacking enough money to create one.
Acknowledging Past Experiences And Family Obligations Is Key To Building Wealth
As building wealth requires acknowledging that financial decisions are not made in a vacuum, it is fair to ask what else is involved. The experiences people have with money and the responsibilities they carry for others can influence what they do with their income even after their earnings increase.
TIAA Institute research on Hispanic financial wellness found that even Hispanics earning more than $200,000 annually faced challenges related to saving, investing, and retirement readiness. Researchers also identified complex multigenerational financial dynamics among participants, including the expectation that some would help support their parents in retirement.
In practice, those responsibilities can reshape what a high income actually provides. Someone may be contributing to a parent’s housing or healthcare costs while also trying to fund a 401(k), build an emergency account and invest for the future. Others may become the person relatives turn to when an unexpected bill or financial emergency arises. In those cases, money that might otherwise go toward long-term wealth building can instead become part of an informal family safety net.
