The Coalition for Debtor EducationResearchBy Valerie Shatilova

Banking Knowledge and Attitudes of Immigrants: Effects of a Financial Education Program (Min Zhan, Steven Anderson, and Jeff Scott)

• Issues immigrants face:• Immigrants are least likely to have access to

financial education and services. (16) • People from Mexico and most other Latin America

countries have the highest rates of being unbanked. (18)• Immigrants are less likely to invest in stock and

save. (17)

• Statistics and Surveys:• According to the 2006 study performed by Rhine

and Green, the 2000 Survey of Income and Program Participation showed that 32 percent of immigrants did not have transaction accounts, compared with about 18 percent of people born in the United States. (16)• Immigrants are 6 percent less likely to have a

checking account and 8 percent less likely to have a savings account. (16)

• Immigrants and Banks:• Immigrants are less likely to trust banks and financial

services. (17)• Poor immigrants with little education and big families

are less likely to be banked than an immigrant family with a higher income.• Legal status concerns also determine an immigrant’s

likeliness to go to a bank. Some believe that not being able to show valid immigration papers at a bank will jeopardize the person’s ability to stay in the US and maintain job.

• Immigrants, Remittances and Check Cashers:• Because immigrants are less likely to have bank

accounts and financial education, many rely on expensive and poorly regulated check cashers. (17)• For most immigrants, check cashers are usually

located in immigrant neighborhoods or near public transportation. (18)• Check cashers have quick delivery time• Language friendly

•Many immigrants send remittances to their families in their home countries. (17)• Typically use the service of money transfer

operators that are usually located in check-cashing outlets.• Only 3 -11 percent of remittances to Latin America

from the United States are sent through banks.

• Introduction to Financial Education:• Knowledge of how to effectively manage finances• Building financial assets• Protect from discriminatory financial practices

• Role of Financial Links for Low-Income Persons (FLLIP) (19)• Established to improve financial management practices among low

income populations throughout Illinois.• Developed a financial management training curriculum for low-income

people with limited reading skills.• For Hispanic participants used Spanish instead of English• Attitudes changed after training about banking and financial systems 

•Conclusion:• Before training people were hesitant about utilizing

available services and financial intuitions. (27)• People’s greatest concerns were about maintaining

and managing a bank account, privacy, cost and eligibility

• After the training, people’s financial knowledge increased. People’s attitudes towards financial services changed from negative to positive.

Economic Inclusion and Financial Education in Culturally Diverse Communities: Leveraging Cultural Capital and Whole-Family Learning∗ (Barbara Robles)

• Issues immigrants face post Great Recession of 2008:• Left many low-income families with no assets

because they lost everything in the Recession.• For some families, the Great Recession meant that

2-3 generations would be living under one roof to minimize financial issues and debt. (60)

•Preferences of Immigrants:• Some immigrants are inclined to use cash because

they come from countries with cash-based economies. Not using a bank is a simple choice or preference. (62)• Evidence suggests that in large families asset

building is used not on an individual basis, but on a family bases: using tax refunds to pay for immigration services and fees, tuition and books, etc. (62)

•Communal Savings:• According to research, Latinas with some college

education or a full college education are more likely to participate in communal savings circles. (63)• “This indicates that it is not knowledge of other

savings products (mainstream financial institutions), but rather cultural capital, communal trust building, and “goal”-oriented savings that are drivers in low-wealth, high immigrant legacy communities.”(63)

• Conclusion:• Teaching financial education is more effective if the whole family is present.

(57-59)• Because each family member makes separate financial decisions, educating

them together allows consistency in spending habits and budgeting.• Getting children involved who now English helps with translating terms to

adults.• Interactive games with children help to introduce them to financial terms

and their functions.• Games like Lottery or Bingo are popular • Family time creates a safe and comfortable pace for learning

• Having the younger people in family extend their knowledge and help to the older members will allow them an easier financial learning experience. (64)

The Contact Hypothesis and Attitudes towards Latinos in the United States (Christopher Ellison, Heeju Shin, David Leal)

• Contact Hypothesis: “contact, particularly close and sustained contact, with members of other cultural groups provides direct information about the values, lifestyles, and experiences of members of those groups.” (938)• This can lead to proper flow of accurate information.• This helps to avoid misconceptions and improper or inaccurate

interpretations of information.• People who solely rely on sustained contact with only one

group, or their own groups, like immigrants, are more likely not to get the same benefits.• Inaccurate or problematic sources of information• Misconceptions

•Observations:• Conditions for most beneficial intergroup contact: • People of same or similar status, job or workforce, general

location • People in close contact with Latino immigrants are more

likely to reject stereotypes and negative images of Latinos. (945)• Those who have Latino relatives are more inclined to feel that

they have things in common with Latinos than with any other group other than their own. (947-48)• According to research, even the smallest connection, like having

acquaintances, with Latinos decreases social distance. (949)

•Conclusions:• Knowing Spanish has the potential to decrease social

distance. • Living in area with many immigrants does not necessarily

improve relations. (953) • “Individuals who attended high schools with large numbers

of Latinos express greater respect for the social, economic, and cultural contributions of Mexican Americans in particular, and Latinos more generally, to U.S. society than did their counterparts who did not attend such ethnically diverse high schools.” (953)

Identification and Attenuation of Barriers to Entrepreneurship: Targeting New Destination Latino Migrants (Zola Moon, Frank Farmer, Wayne Miller, Christina Abreo)

•Most data used from Entrepreneurial Development Targeting Rural Hispanic Immigrants: A Collaborative Research and Extension Project (Farmer, Miller, Moon, Abreo and McCullough, 2012)• Predominant issued recorded:• Start-up capital (42% of respondents said it was a primary concern, 15 % said it was secondary concern)

• A total of 107 surveys taken from more than 200 businesses from 39 communities in 21 counties in Western Arkansas

• Entrepreneurs• Come from urban communities• High level of education (64)• 20% of participants have completed U.S.

equivalent of a high school education• 17% have completed U.S. equivalent of college

preparatory or vocational technical training.• 15% have higher level of education

•Businesses• 40% of participants said that they speak only Spanish

with their customers.• Many businesses belong to the Accommodation and

Food Services or Retail Trade category. • Fewer than 29% own businesses in their home

countries • 28% are females who own businesses• 33% are males who own businesses• 22% are couples who own businesses

• Issues faced by Entrepreneurs• Participants said that they felt left out, ignored, and

discouraged when going to a bank to receive a loan. (67)• Shocked that their homes cannot be used as

collateral (80% of participants)• Did not feel like they understood what business

plans were, where to get help to write them and how to receive further information regarding how to start a business. • Loan applications are often rejected by local banks.

• Federal, state and local regulations also created barriers.• Some issues with racism and stereotypes. • Business owners also reported that most of the time they

were limited to Spanish-only outlets when it came to media and advertising. (68)• Have difficulty with: (68)

• Lack of information about local, county, state, and/or federal licensing requirements

• Lack of information about licensing requirements for different businesses and occupations

• Lack of organized information sources about licensing process (step-by-step)• Difficulty obtaining regulatory information from government agents• Difficulty locating/contacting appropriate regulatory agency, contact person, or

application

•Pilot Outreach Program:• Provided Latinos with information and resources to

overcome barriers and start their own businesses. • Most programs taught in Spanish.• Used responses to evaluate difficulties faced with

Latino business owners and entrepreneurs.