New MassMutual survey delves into their challenges as they prepare for a financially sound future and provide their children financial education
(Springfield, MA) – The results of a new study released today by Massachusetts Mutual Life Insurance Company (MassMutual) suggests that affluent Hispanic moms, with household incomes greater than $100,000, are working to be financially responsible, while striving to flawlessly manage all the household responsibilities. Yet, like many, they’re concerned about the state of their families’ finances and at times don’t know where to turn for help.
A total of twenty-five percent of these Hispanic moms see themselves as savers and perceive their significant other as spenders, compared to the reverse perception. This is further evidenced by the fact that if these moms had $5,000 to spend on whatever they wanted, they said they would put almost one quarter ($1,100) towards savings. As savers, forty-one percent of these Hispanic moms have recently made a conscious effort to cut back on unnecessary expenses. As a contributing working mother, nearly a quarter of the affluent Hispanic moms generate supplemental income for their family or plan to start their own business.
Despite the steps these Hispanic moms have taken, the survey suggests that they’re worried about their finances and what the future may bring. Thirty-four percent of these Hispanic moms, more than the general population, feel that they should be doing more to save for the future, but right now are struggling to just get by. Additionally, nearly one out of every five of these moms wishes she were more in control of her finances.
“It’s clear that these Hispanic moms are playing a larger role as the financial decision maker of the household, and it’s promising also to see that they want to provide financial education to their children,” said Chris M. Mendoza, vice president, multicultural market development, MassMutual. “It can be overwhelming for any mother to balance work-life duties, but there are things moms can do to help alleviate the pressure, such as communicate often with their spouses about the finances, talk to a trusted professional, and seek out financial educational materials for the household.”
In beginning the discussions on finances, these mothers are starting to educate their kids on finances at 6.9 years old. The affluent Hispanic moms are also leading the way as nearly 9 out of 10 of these moms play an active role in educating their children about finances and also actively involve them in the family budgeting.
Other findings from the survey include:
• These Hispanic moms seem to be the least satisfied with their current financial situations (19 percent, compared to 25 percent of Caucasian moms).
• These Hispanic moms are also the least confident in feeling like they’re doing a good job of preparing financially for their retirement (20 percent, compared to 24 percent of Caucasian moms).
• Thirty-two percent of these Hispanic moms, more than the general population, struggle between their desire to spend time with their children and the need to work.
To learn more about MassMutual’s survey on the Hispanic mom or for educational resources for children on money management, logon to massmutual.com/familyfinances. To find help with preparing for your families’ financial future, logon to MassMutual’s Spanish-language web page atmassmutual.com/espanol. To find a bi-lingual MassMutual financial services professional to help you, logon to massmutual.com/locateanoffice and select “Spanish” as a language preference.
MassMutual’s State of the American Mom study was conducted by Forbes Consulting Group, LLC between May 2 and 11, 2012 via a 20-minute online questionnaire. The survey comprised 1,014 interviews with American women who are financially responsible for children under the age of 27. Interviews were conducted among mothers aged 25-65 with household incomes greater than $50,000. Respondents had to contribute at least 40% to decisions regarding financial matters in their household to qualify. Results were weighted to the 2010 US Census to be representative of American women in this age and income bracket. Results are presented for three generational groupings, which correspond to the following birth years: Generation Y (born 1980-1992), Generation X (born 1965-1979) and Boomers (born 1946-1964). The report is based on 83 Hispanic women with incomes of $100,000 and above. The margin of error for Hispanic mothers is 9.52% at a 95% confidence level.
Founded in 1851, MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyowners. The company has a long history of financial strength and strong performance, and although dividends are not guaranteed, MassMutual has paid dividends to eligible participating policyowners consistently since the 1860s. With whole life insurance as its foundation, MassMutual provides products to help meet the financial needs of clients, such as life insurance, disability income insurance, long term care insurance, retirement/401(k) plan services, and annuities. In addition, the company’s strong and growing network of financial professionals helps clients make good financial decisions for the long-term.
MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. MassMutual is headquartered in Springfield, Massachusetts and its major affiliates include: Babson Capital Management LLC; Baring Asset Management Limited; Cornerstone Real Estate Advisers LLC; The First Mercantile Trust Company; MassMutual International LLC; MML Investors Services, LLC, Member FINRA and SIPC; OppenheimerFunds, Inc.; and The MassMutual Trust Company, FSB.