Understanding Financial Vulnerability Among Asians, Blacks, and Hispanics in the United States

Abstract

The COVID-19 crisis has revealed the endemic financial struggles that many people face in America. Minority communities, in particular, have been disproportionately impacted by the pandemic, making them ideal candidates for efforts to promote financial well-being. This paper examines the financial vulnerability of Asians, Blacks, and Hispanics in the United States, along with potential drivers, using data from the 2021 National Financial Capability Study and the 2022 TIAA Institute-GFLEC Personal Finance Index. The empirical analysis is complemented by roundtable discussions with experts from National CAPACD and UnidosUS.

Keywords: financial literacy, minority, debt, financial fragility

JEL Classification: G53, D1, I3