The economic recovery from the pandemic for LatinXs and Hispanics has been disproportionately slow, with unemployment lagging behind whites and Asians. Creating wealth among the minorities who serve the hardest hit industries and small businesses has been exceptionally difficult.
“It’s no surprise that this community has been hit the hardest,” Yahoo! Delyanne Barros, founder of “Delyanne, The Money Coach”! at an event celebrating LatinX and Hispanic heritage.
“I think it’s because we’ve taken such a step forward in creating wealth through entrepreneurship through small businesses,” she added.
In August of this year, the S&P 500 (^ GSPC) had risen 100% since the market lows of March 2020. But it is likely that many LatinX and Hispanics did not directly benefit from the gains in equities.
“Because Latinos don’t invest as much in the stock market as other communities, they have felt the impact on their wealth more as their businesses suffer, as the stock market has continued to grow and prosper,” Barros said.
Families headed by black or Hispanic adults are less likely to be invested in the stock market than those headed by white adults, according to Pew’s latest study. About 61% of white US households own stocks, compared to 28% of Hispanic households.
“Because they are not taking advantage of this wealth building machine, they are losing by balancing some of that loss with the investment,” Barros added.
While wages have increased this year, so has inflation. “How to diversify your income” is the only way for under-represented communities to keep up with price increases, says Diana Pinedo, founder of Ms. Informed Latina.
“In a gig economy, you can learn any trade, and you can really learn anything, and then start charging to make some money, whether it’s popular products or services. “said Pinedo.
“There’s Instacart, and there’s Uber (UBER), and there’s TaskRabbit. There’s just all of these ways to make a little extra cash,” she said.
“And of course, it’s about investing your money. Whatever other money you make, I would set some aside for investment purposes, and of course, some to make up for it. inflation, ”Pinedo added.
Ines Ferre is a reporter covering the stock market.
Read the latest financial and business news from Yahoo Finance
Follow Yahoo Finance on Twitter, Instagram, Youtube, Facebook, Flipboard, and LinkedIn