October 2017
Summary: This report uses the inaugural wave of the TIAA Institute-GFLEC Personal Finance Index (P-Fin Index) to examine financial literacy among Hispanics. A more refined understanding of Hispanic financial literacy could accelerate initiatives to improve their financial well-being.Personal finance knowledge among Hispanics is lower than that of the U.S. adult population as a whole. But beyond the gap with the general population, there is a notable difference in financial literacy within the Hispanic population between those born in the U.S. and those foreign born. The difference in the percentage of P-Fin Index questions answered correctly among U.S.-born Hispanics and foreign-born Hispanics (8 percentage points) is close to the difference between whites and U.S.-born Hispanics (11 percentage points).The difference in financial literacy between U.S.-born and foreign-born Hispanics cannot simply be attributed to differences in underlying demographics. Greater financial literacy among U.S.-born Hispanics relative to their foreign-born peers is consistent with education and income differences between the two groups. However, it is inconsistent with age differences between the two.