Single Hispanic women have the smallest median net worth compared to other demographics. According to one analysis, Latinas have a median net worth of just $1,000 (hint: white men have a median net worth of $78,200). Our friends at Fierce by mitú, introduced us to Gabriela Berrospi, the founder of Latino Wall Street, a platform that provides accessible financial education info about investing in Spanish, to chat about how to change these stats. Her answers have been edited for length and clarity.
Skimm Money: What factors contribute to the Latina gender wealth gap?
Berrospi: Statistically, we are underpaid, underbanked, and underrepresented across industries. Fewer opportunities and exposure naturally create less income.
How can Latinas work toward building wealth despite these challenges?
In order to build wealth, it is essential to invest in financial education as wealth is a function of making your money work for you, rather than just working for money.
But it’s not just about building wealth. It’s about building generational wealth. Can you explain the difference between the two and how can Latinas start building generational wealth?
Wealth is simply creating more than enough income and assets for yourself. Generational wealth is doing so for your next generations so that your kids and grandkids also benefit from your work. Leaving a legacy should always be the goal.
What advice do you have for balancing saving, paying down debt, and investing to build wealth?
In my personal experience, what has worked best has been to always have an emergency fund that covers my basics. Then, once I have that, start paying down debt, especially if the interest rate is high — the way I did it when I once had student loans. However, you can still invest as you save for your emergency fund and make loan payments, as you don’t have to start with much. Your goal should always be to make money work for you, even as you address other responsibilities.
What’s one thing about building wealth that…
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