Financial Literacy and LatinX: How to Take Control of The Investment Gap
Jennifer Openshaw and Jully-Alma Taveras discussing how financial literacy may be a tool in fighting racial inequity.
By Jody Bell
COVID-19 has pointed a blazing spotlight at inequity in America. From healthcare to finances, minority groups are being disproportionately affected by the virus in a multitude of ways.
So how do you begin to confront this issue, especially if you are a GenZ and a member of the LatinX, Black, or other BIPOC community? While social activism is key and incredibly important in the fight for equity, financial literacy is a great way to confront these inequities now — especially given the economic turmoil of COVID-19.
Jennifer Openshaw, CEO of Girls With Impact, spoke to Jully-Alma Taveras, founder of Investing Latina, to find out why financial education is crucial in the fight for equity, and how you can begin investing today.
Why is Financial Literacy So Important?
Regardless of what demographic you fall into, financial planning is important. That being said, when Latina women are still making .54 cents for every dollar a white man makes, it is even more crucial that you can maximize your earnings.
Have a Focus on the Future
It can be hard to get out of the “YOLO” youth-mentality, but when it comes to financial literacy and planning, forward thinking is key.
As Taveras Summarizes, “you need to focus on what you envision yourself to be.”
Essentially, think about where you want to be in 5,10, or even 15 years. Are you a college graduate? Where do you want to live? What type of lifestyle do you lead? Answering these questions will allow you to begin to plan for this lifestyle, and the expenses that come with it. That way you can begin investing in this future now.
Spend with the Reward in Mind
Despite popular belief, financial planning does allow for spending. The only difference is that it is smart spending.
Each time you think of spending money, it is crucial you determine what the future reward or benefit is. If you had an incredibly hard test that you did well on, it could be worth it to buy yourself something because you are rewarding yourself for good habits.
A more common analogy would be college — attending college is a major investment, however, the future rewards are higher salaries, and more job opportunities in the future. The key is simply about balancing these current purchases with these anticipated future benefits.
Consistency is Key
When it comes to investing, it can be easy to forget to invest for a while, or even to continuously put it off. This is exactly what not to do.
Maintaining your portfolio is key and will ensure you are always up-to-date on your investments. Even if you are only investing ten dollars a month, it can instill good habits that are crucial when your portfolio grows.
Taveras recommends investing a consistent dollar amount once a month — usually on the same day. This day could be the day of your birthday, the first of the month, or whatever you would like — the key is to have a schedule.
Simply put: financial literacy for underrepresented communities is crucial to counteract the inequities faced within finances. Now, with the economic uncertainty faced by COVID-19, it is even more important to be financially educated and active. Hopefully these tips helped convince you of this, and gave you some advice on how to get started.
Jody Bell, 19, is Girls With Impact’s Chief Editor and a program graduate. Girls With Impact is the nation’s only online, after-school, entrepreneurship program for teen girls, turning them into tomorrow’s business leaders and innovators.