00:00:00
[Music] welcome to the state of financial Wellness for Hispanic Americans with the
00:00:04
Tia Institute I am farita Griffith the managing director for the Coalition for equity and opportunity to celebrate
00:00:11
Hispanic Heritage Month we are recognizing the contributions and influences of Hispanic Americans to the
00:00:18
nation's achievements culture and history I happy to be joined by Seria Kori head of Tia Institute and Professor
00:00:27
David Musto of the Wharton School Sera is recognized as a thought leader in retirement and healthy aging research
00:00:34
and sits on the Wharton pension research Council and holds a MBA from the Wharton
00:00:39
School David is the Ronald o Pearlman professor in finance the director of the Steven Center for Innovation and finance
00:00:48
a member of the Wharton Coalition for equity and opportunity faculty Advisory Board and conceptualize the fivers app
00:00:55
that we are going to discuss today geared to serving under ource communities okay so let's jump into this
00:01:03
important conversation Seria can you share why the Tia Institute is interested in and cares deeply about
00:01:10
focusing on Hispanic communities according to the Tia Institute and Stanford's Global financial literacy
00:01:16
Excellence Center annual pen index survey Hispanic personal finance knowledge is typically lower than the
00:01:25
overall US population what are some factors that contribute to this disparity and financial
00:01:32
literacy thank you so much on behalf of the ti Institute and all my colleagues at Tia to join this conversation with
00:01:38
you and Professor mustto uh uh we became deeply interested in this topic as you rightly mentioned we focus on the topic
00:01:46
of retirement and naturally along with that longevity uh and U as we started studying the topic uh particularly
00:01:56
through the pandemic uh we saw lots of disparities in how the longevity of folks between
00:02:04
males and females between different races and ethnicities and then when you go to the Social Security Administration
00:02:10
and start collecting data on social security income across these various demographic groups you see a lot of
00:02:18
disparity as well so it's not a one-size fitall conversation so we need to understand these different demographic
00:02:25
groups deeply and to your point uh one of the uh areas that we have kind of done a lot
00:02:32
of research is around uh retirement preparedness and financial preparedness and if you ask then why do we see these
00:02:41
differences I'm sure Professor must would agree with me there are things like barriers structural barriers
00:02:47
language barriers access to education Access to Health Care uh maybe even in our study recently that we did on
00:02:57
Hispanic and Hispanic Financial Wellness maybe some cultural distrust elements all these things lead to a kind of a
00:03:06
focus and understanding of what's happening with our Hispanic Latino population and I'll close with this
00:03:12
research Point uh and turn it back to you so what we found in our researches about uh over
00:03:19
onethird of Hispanic Americans were not able to answer more than seven questions
00:03:26
correctly in an administered questionnaire is in assessing financial literacy um and that was double the rate
00:03:34
of white Caucasian population and then similarly we also found that um 38% let's call it 4 and 10 had weak
00:03:43
longevity literacy and this is an important point I want to just make which is if you look at longevity by
00:03:50
demographic group Hispanic Latino females are the second longest living in the US and therefore it would be
00:03:57
troubling to say longevity literacy is low because then that population is incurring longevity risk meaning they
00:04:06
could outlive their savings so these are all the reasons fra why we care deeply about this topic and some of these
00:04:14
findings thank you so much for just highlighting that those demographics and saying you know this not a one-size fits
00:04:21
all because I think that's a really good um point to make and I do want to let
00:04:25
the audience know that we will provide the link for the report by the TA Tia Institute on the podcast website so
00:04:33
building on that work U that Tia Institute is doing uh regarding Financial Wellness for Hispanic
00:04:39
Americans David can you share a bit more about um what inspired the development of the ferse app the app that High
00:04:47
School interns um at the Wharton Stevens Center for Innovation developed to determine the real cost of college
00:04:54
particularly and why it is important to involve high school students in its creation especially those from
00:05:01
underrepresented groups like uh the histic uh communities oh thanks for thanks for having me and um well first
00:05:10
why did we start this app two things to say one is well we the center launched five years ago and right away we asked
00:05:17
ourselves well what is a way we could reach out to the community something that was grounded in uh Finance
00:05:24
scholarship what academics do all day and then what would be useful to the community and student student loans was
00:05:30
the first thing that came to mind here's a huge financial decision you have to
00:05:34
make before you've made maybe any other real financial decision or anyone that
00:05:40
really would come to mind and uh so it's a big decision and it it's not it's big
00:05:46
but it's it's multi-dimensional in a way that's kind of hard to wrap your mind
00:05:51
around you take out a loan and then you go to school and then good and bad things can happen and you get the job
00:05:57
you don't get the job all sorts of things can happen down the road which by the way is why we called it ferse
00:06:02
because ferse the idea was it's Finance in the Multiverse that was the idea that
00:06:07
that you take out alone you make a financial decision and then all these universes in some sense Branch out um
00:06:13
from this one and uh you want to maybe take a one fact from each of those universes that could happen and collect
00:06:22
those and present them as a as a as a probability distribution the diversity of things that could happen
00:06:30
because you did because you took out this loan and then you look at that you think about it you ask yourself what is
00:06:37
you look at the risk and you ask yourself well is this is this right for me or not and you can ask that about
00:06:43
different schools that cost different amounts and different careers you could pursue and so on so it's it's it's a way
00:06:50
to take that unwieldy financial decision and make it a little more uh digestible
00:06:56
so that's one thing and then the other is uh just to you bring high school students to campus in in exercise in
00:07:04
entrepreneurship it's it's an entrepreneurship in every way except there's no there's no pot of gold at the
00:07:09
end of the rainbow right warrant's not charging for this uh the students are
00:07:13
supported they're supported by a federal program called the work ready program
00:07:17
and so they actually get a little stipend for the campus uh that's you your tax dollars at good work I believe
00:07:23
and um and and they all come from that's means tested right so they all come from
00:07:28
lower income families and anyhow they it's been a great time this semester we
00:07:33
have 81 81 high school students coming here uh Tuesday so tomorrow is the first day to Tuesday uh evenings coming from
00:07:41
something come communic almost an hour to our campus you know from Northeast far away to join us and we have all
00:07:48
these different teams and so it's just a lot of fun for all of us thank you so
00:07:52
much for just um giving us a little bit of insight into this work I think um as I hear you talk I hear access I hear a
00:07:59
conversation about why this is important and giving them tools right um practical
00:08:04
tools that will have real life implications yeah I and you know here's one very like the lowest hanging fruit
00:08:12
of all is um income driven repayment which is a very generous Federal program that shares a lot of the risk if if you
00:08:22
if you swing for the fences I want to do something and maybe it doesn't work out
00:08:26
it's a very risky hard job to get or whatever you bad things can happen which
00:08:30
is part of why we made this app is to sort of bring to you you know the good things bad things can happen but with
00:08:36
income driven repayment a lot of the downside is borne uh through this Federal program and because it is that's
00:08:43
one more reason to to take that risk right but if you don't know that in advance then it has no effect on the
00:08:52
risk you take you don't know you don't you don't know about in advance it
00:08:55
doesn't affect your your decision and so and we've learned in our interaction
00:08:59
with high schools very few high school students know anything about income deriver repayment might ask a room full
00:09:04
of kids even at a magnet school here in Philly that attracts very ambitious students and maybe you know two hands go
00:09:11
up that they know what it is and so just that's that's the lowest hanging fruit
00:09:15
of all just to show people income driven repayment and show how it's going to
00:09:18
affect uh their repayment going forward so can we build on that a bit and talk a
00:09:23
bit about the work that the Institute Tia Institute is doing to think about finan
00:09:29
Wellness for Hispanic Americans um so as I think about the work that um surria and his team is doing the report found
00:09:41
that uh roughly 5% um roughly 5% less incidents of student loan debt is taken by Hispanic Americans so that is an
00:09:51
average about $15,000 um and but amount of uh student loan does not equate to a higher number
00:09:59
of um liquid assets um and so s I'm just wondering if you could speak a little
00:10:04
bit about how Hispanic Americans are managing to enter adulthood with less uh student loan debt but we're not seeing
00:10:14
um any information that kind of gives us a in uh insight into whether or not we see higher um uh liquid assets it's a
00:10:23
perplexing finding indeed uh but I did I did want to say that the app that David
00:10:29
described um is such a Leap Forward into this improving of this financial literacy through a practical application
00:10:37
uh that I'm pretty excited to hear about this and wish great success in its roll
00:10:41
out uh on this question for about U loans you know I think as I think about this finding maybe we can discuss the
00:10:50
what as opposed to the why the why is going to take a little more research uh but here are a couple of guesses one is
00:10:57
uh and as an Asian-American can kind of relate to this propensity that parents are very invested in the education of
00:11:05
their next generation and maybe even them taking on loans or home loans and paying it forward rather than having
00:11:14
Shifting the burden to the kids uh I can in my own family in a larger family I can think of those kind of incidences
00:11:21
we're taking on home parents taking on home loans or withdrawing money God forbid from their 401K plans Etc to fun
00:11:29
education so that's one explanation U the second is maybe the choice of schools uh and I'm just completely
00:11:37
relating to this based on some of the focus group work we were doing for This research that almost every single
00:11:44
incident there was a focus on education but the emphasis was on community colleges State schools rather than the
00:11:52
more expensive private schools so there could be couple of those and then finally um you know uh if if you also
00:11:59
another way to ask the question is what proportion of the population is going for higher education versus the broader
00:12:05
population all those could be factors feeding into this perplexing finding I think thank you for that insight and I
00:12:13
just wanted also to highlight as a sociologist I'm happy to hear that you're you have the survey data but
00:12:19
you're also doing the focus group um to kind of get the uh in-depth uh data around what also this could be factors
00:12:27
contributing to that so thank you so much Fredo one small point there is you know when we run
00:12:34
surveys at some point the data set becomes smaller and smaller and smaller that it's no longer statistically valid
00:12:40
to say you know for example young hispanic Latino females uh living in the rural areas I mean you're so far down
00:12:49
that you're not going to have a sample to be able to do that so you want to add
00:12:53
some color commentary to that with the dialogue discussions and focus groups let's continue this conversation David
00:13:00
about student loans um unfortunately student loans is a significant burden for many young adults what impact do you
00:13:07
think Philadelphia High School students from underrepresented groups and designing this app has on its
00:13:13
development and can you discuss a little bit about how the ferse app aims to help
00:13:19
high school students understand the real cost and risk associated with higher education
00:13:24
financing okay so well a couple things to say we bring high school students students to campus and they learn
00:13:32
entrepreneurship they learn coding they learn the uiux you know everything that goes into an app uh which is you know
00:13:40
good for them it's also good for the app because the app is designed for students
00:13:45
like them it's designed for uh high school students who for whom college is something they're considering and to um
00:13:54
engage those students to to bring them through the app um to the point where they can digest the information that we
00:14:04
are providing that is crucial right you see people can go through all this but if if after do all these simulations
00:14:11
people look at the result and they don't really internalize it then uh we haven't
00:14:16
achieved our goal uh so um that we we have these students are designing something for uh people like themselves
00:14:24
and they socialize a lot they go back to their school they they have people try it out we go to these schools all the
00:14:31
time I was just actually just at AFF Philly High School just this morning um and uh we actually and we're actually
00:14:37
visiting the Community College of Philadelphia uh next week um and so we are always reaching out uh to
00:14:45
fine-tuning it so that it will be uh you know it it will it will serve the needs
00:14:52
that people actually have and I should add also that one thing that we see this app doing as is is as an as an an assist
00:14:59
to our school counselors right when our school counselors uh which you know typical school counselor might have I
00:15:06
think about 400 students an average I think I think it's about the the ratio
00:15:10
of students to counsel like 400 to one and that's you know tough job and uh to
00:15:16
make you more um to help you be able to answer the questions uh when someone walks in walks in the door and say I'm
00:15:23
thinking about this school I'm thinking about this major I'm thinking about
00:15:25
pursuing this uh line of work to be able to show some hard numbers the hardest numbers we can come up with I think uh
00:15:32
should be uh I I hope a a good assist to these uh you know overworked uh you know
00:15:38
teachers what do you find in terms of uh you know if I if I think about you know
00:15:44
today's technology uh you can use them pretty intuitively and quickly uh without a lot of training so what what
00:15:50
is your finding with the with the app here with teachers uh counselors and students being able to use it
00:15:57
intuitively over time we're trying to uh socialize it s further and further Beyond uh you know uh to people who are
00:16:06
more and more strangers to us to to the goal is that some a total stranger could
00:16:10
pick it up and just plow right through it and get right to the end and and get the um uh get all the benefit from it uh
00:16:17
we are making more progress to that goal all the time I would say that um if if you look at it by the way you can go to
00:16:23
f.org that's the um that's the website you'll go there right now uh you can see
00:16:28
that that um you know the students have built I believe a very uh nice user interface that um brings you through it
00:16:37
in a way that doesn't demand too much from you uh and gives you I think rewards here's another reward you get
00:16:43
right away which is the net cost of colleges uh the net cost can be very different from the sticker price Penn's
00:16:51
a good example uh the net cost for many students uh is actually zero um and uh in General it's low um and you you see
00:17:02
if you see the sticker price of 880,000 or what I think it's more than 80,000
00:17:06
now whatever it is a huge number uh you might just look at that and oh forget it
00:17:10
you know that's just that's that's crazy talk right uh but right away right away
00:17:14
the app shows you uh the median sticker price students actually pay and then you
00:17:18
can go of course further and say well you know given your financial circumstances you you can learn that in
00:17:23
fact maybe it's it's zero I should add while I'm saying that that we've
00:17:26
designed it very carefully so that we're not storing anything you put in so there's no privacy issue here right so
00:17:32
don't worry about that because I know this is private you you put in Family Resources that's private uh but we're
00:17:38
not uh we're not storing that or anything like that so the point you're making is a direct uh kind of connection
00:17:44
to the focus group I was describing where the parents were talking automatically about community colleges
00:17:50
and state schools thinking about the sticker price for private schools whereas if they were educated through
00:17:57
the ferse they would thinking about net cost not stick price yeah there's that
00:18:01
though I don't of course I don't want to throw water on the two-year schools and
00:18:05
that's one thing that that's that's sort of our next um our next goal is to fold
00:18:11
in two-year schools to the choice Set uh because that certainly can be affordable
00:18:17
way to you know here in Philadelphia go to go to CCP Community College Philadelphia get the two-ear degree and
00:18:23
then transfer into Penn State and now you've spent a whole lot less money the
00:18:26
point being that they have the access to full range of options yes yes I say at the moment it's only the fouryear
00:18:32
schools but but but but we're expanding it to the two-year schools too David one
00:18:36
of the things as I hear you say is this information could really be life-changing for individuals because it
00:18:43
opens up options that may not have been at reach for individuals who maybe as you said college is something that is on
00:18:50
the radar but what type of college and where that college is um that aligns with the goals of what they're trying to
00:18:55
do May broaden that um and so I think that work is really really important and also um thinking about how can we make
00:19:03
sure we include different types of Institutions to make sure we have as many individuals using this app and by
00:19:09
the way I I will we will have that um link for the app as well on our um website okay Saria um let's change the
00:19:17
the conversation from student loans now to thinking about hispanic Henry's um
00:19:22
and henries is an acronym um but it stands for high earners but not yet rich uh the study of the report uh by the Tia
00:19:31
Institute found that over 90% of Hispanic henries want to grow their wealth by investing and diversifying
00:19:38
their income streams um are there any uh New Opportunities available to Hispanics
00:19:44
based on that those findings and what's prompting this change in mindset in comparison to their parents uh
00:19:54
generation it's a great question it's a fast growing population and an equally
00:19:58
fast growing GDP if you were just to do a GDP assessment of this uh of this demographic group and so what we learned
00:20:05
from this focus group of this High earners but not yet Rich group is that they really want to shift from and this
00:20:13
I think is interesting work for your money quote unquote mindset uh that they saw their earlier Generations parents
00:20:22
grandparents have two make money work for you so we that interesting shift in mindset uh with this group that we're
00:20:33
discussing to enjoy the fors of Labor hard work uh enable A Better Living standard take take of the future
00:20:40
Generations Etc um and family tends to be kind of the top Focus 40% of the group that we survey ranked as number
00:20:50
one uh more than even meaningful career actualization those kinds of goals um and I I think while there's an
00:20:59
opportunity for Hispanic individuals themselves even within this group to seek education advice uh we think and
00:21:06
this is where I get excited that there's an opportunity for financial professionals who are serving and
00:21:13
providing advice and financial guidance to adjust their approach uh so I'm in
00:21:19
the business of talking to financial advisers day in and day out and providing this change in mindset is
00:21:24
pretty exciting uh to meet their Hispanic clients where they are and and uh multi-generational considerations and
00:21:31
this is a faar out of mind resistance to jargon the financial services industry is like jargon leaded so can you
00:21:37
simplified and speak in you know in a in a way that people can relate to uh address this lack of trust that uh uh
00:21:45
financial institutions might have uh all those adjustments if a financial professional can make they can meet
00:21:52
where this demographic group uh important and growing demographic group lives and and provide the requisite
00:21:58
guidance and advice can we talk a little bit more about this the role of trust um in in
00:22:04
kind of understanding the state of financial Wellness for Hispanic Americans particularly the report found
00:22:11
in the quote do it with me in quote model of financial advice that is integral to overcoming distrust of
00:22:18
financial institutions in the Hispanic Community can you explain more about that model and then how it can help
00:22:25
build trust and decrease Financial disparities within the Hispanic Community just make a couple of points
00:22:30
here um you know even though there's a shift in mindset I was describing make
00:22:34
money work for me there's still you know our research is showing some scars left
00:22:40
from previous generations uh from a distrust uh in the room and we engag in these focus groups um so uh when we
00:22:49
asked you know what kind of Investments would you want to be making uh by way of
00:22:54
what their interests are mutual funds you know comes uh came up to to the for Real Estate I was surprised 529s came up
00:23:03
too and those tend to be like bit esoteric in a general conversation but they did come up as a preferred
00:23:08
investment class and uh they also Express a desire to be partners in making financial decision not just like
00:23:16
hand them you know here's what you should do checklist but rather wanting to partner and be educated on the
00:23:22
options and the considerations not just be told what to do and to reiterate my point earlier that I made jargon um you
00:23:30
know kind of be educated informed in simple language so that all of this advice is accessible to them yeah that's
00:23:37
really important I wanted to um also go back to something that um David talked about in terms of the role that the
00:23:45
finse app is doing and then the the adaptations and expansions that you're doing within the um the app particularly
00:23:53
around adding to now making sure you have uh information for community colleges um are there plans to um also
00:24:00
to do any other expansions within the app um as it relates to young adult financial planning space well uh a
00:24:07
couple things uh one is that one new module developing for the app is answering questions about um what does
00:24:17
it mean to major in this subject what doors am I opening and what doors am I opening you know less um by majoring in
00:24:25
this versus that a little anecdote my father uh eventually ended up in medical school
00:24:31
what did he major in he majored in Classics right Greek and Latin um and um if you look across I I have a friend who
00:24:40
teaches at Wesley and is a philosophy professor and he said uh well my the philosophy Majors here get the highest
00:24:47
scores on the lsats and they tend to become lawyers uh and so um there are you know when majoring in one thing
00:24:56
versus another uh doesn't necessarily mean what you think it does it doesn't
00:25:01
close off uh um you know so many doors as you might think uh College can be you know you can explore a lot of things in
00:25:08
college and then uh pursue um pursue what you're interested in within reason
00:25:15
well you want to know what are the numbers right what are the facts and so that's one thing we've partnered with
00:25:19
rello Labs which is letting us use their data to that tracks people uh over time
00:25:27
you can see what schools they went to what they majored in and then what they did right after
00:25:33
college um and then what were they doing 10 years later and so you know for first
00:25:38
someone was just backing up from the whole financial question is saying well should I go to college or not and what
00:25:43
does it mean to go to college and was it mean to go to this college versus that college or major in this versus that
00:25:49
well you know you want to see the numbers you want to see the numbers presented to you in a way you can look
00:25:53
aha that's interesting uh and now I I'm seeing how people's lives you know
00:25:57
evolve uh through college and after um and that's going to help me uh help me
00:26:03
make this you know help help me choose choose the right uh you know beginning point for myself and then you know I can
00:26:10
see the the diversity of things that could happen later so that's that's one
00:26:13
thing we're working on right now lots of different ways you can you can go with
00:26:18
um Financial um decision making um you know you could take a course you could take it to mortgages for example um and
00:26:26
uh help other kind hanging fruit as you these days of course mortgage rates are higher than they were a few years ago
00:26:32
and a lot of people might be tempted to uh accept a big prepayment penalty on their mortgage to get the the rate
00:26:39
lowered and say well okay you can do that I can see why you might do that but that's actually a big moneymaker for the
00:26:44
lender right because they're sort of taken away a lot of your ability to refinance to a lower rate if rates go
00:26:50
down and you know someone who's just entering just buying their first house they have no idea that you know you've
00:26:56
just uh you know given up a lot of your right to enjoy you know other people are
00:27:00
going to get the new lower rate when it goes down you're not going to and um
00:27:04
this same kind of simulation kind of app could help people wrap their minds around that sort of
00:27:11
probabilistic um um uh sort of Arbitrage that's a quite right word but that might
00:27:18
be the easiest way to see it uh what you're giving up by doing this and how people are making money off you I think
00:27:25
you're making a good point too because you think you're making a financial
00:27:28
decision now um it's really important to maybe think about when you make that
00:27:33
decision what the future holds and what if you're making the right decision what
00:27:37
that entails and so I really appreciate that you're you and your team are doing
00:27:42
that work to help um individuals who may um have some of the information but not
00:27:47
all of it so it's in a nice little package for them in the app and you're
00:27:50
thinking about ways in which you can build on that and so I think that's a really important contribution um to this
00:27:55
whole notion of understanding kind of financial liter so thank you I want to um welcome both of you the opportunity
00:28:03
to share some challenges um that Hispanic and other racial and ethnic minorities experience that contribute to
00:28:12
this economic disparities both initiatives both the ferse and the report from the Tia Institute emphasize
00:28:19
the importance of financial literacy among younger and underrepresented populations so how critical is early
00:28:27
Financial education in closing the wealth Gap and what strategies um have proven most effective
00:28:34
so we brought the question of trust before and uh you know I'm not an expert on you know other people
00:28:44
other um you know ethnic minorities but I can say that in general trust is a big
00:28:50
uh driver of how people within an affinity group will make make a decision right the days of everyone going down to
00:28:57
the same bank uh and getting their loan or whatever there that are completely over uh these days why do you go to a
00:29:05
particular mortgage broker uh or other financial service provider it's going to
00:29:09
be from your from your uh affinity group people that you trust and that's of
00:29:14
course a great way to get the word out about um um you know a good product of course it's a great way to get taken
00:29:21
advantage of too right we all know Bernie maid off you know took tremendous advantage of his affinity group right so
00:29:27
uh you have to uh you have to be careful but that I think that sort of understand
00:29:31
that's how a lot of financial decisions uh will be made some financial institutions have really reached out to
00:29:37
Immigrant Community One bank I'll just toss this one because it keeps coming up
00:29:41
again is US Bank has been brought up to us again as uh again again as a bank that's really made an effort to uh reach
00:29:48
out to the Immigrant communities U and uh engage and educate and um and then you know that ultimately for them will
00:29:58
be the gift that keeps on giving because you know good word is going to spread um
00:30:02
so yeah that I think you think about you trust trust is is going to be how these
00:30:08
decisions are made and um of course you got to be careful about who you trust yeah I really love the point that David
00:30:13
made about trust we've talked about it through this conversation so let me add
00:30:17
a couple of others U one is you know I think particularly with this demographic group worth uh having a of a more of a
00:30:25
holistic perspective and a holistic conversation it's one thing to say okay here's your money here's your money is
00:30:30
growing with all these smart Investments but taking into account family considerations intergenerational
00:30:37
considerations family goals I mean that's come through such a through line in our research that the emphasis on
00:30:43
family I think it's going to be very kind of a trust building exercise uh that's one point the second I've already
00:30:49
made this point before keeping the language simple and everyday language to connect in the conversation is going to
00:30:57
be important and then thirdly uh to emphasize the collaborative aspect not here's what you
00:31:04
should do here's a checklist but rather let's work on it together those three
00:31:09
things I think are kind of the factors that could contribute to this trust building with the community and ensuring
00:31:17
their financial Wellness let me just add just one more thing to that which is that one stylized fact about a lot of
00:31:26
immigrant communities is that you have many generations Under One Roof and that is uh sort of a positive and a um I know
00:31:37
can be a risk in some situations a positive naturally because as as an older person you have the support of
00:31:44
your of your of your kids and the whole family and that that's uh that's
00:31:49
obviously a huge help uh it does make it potentially hard to save for the long run though with all those demands on
00:31:55
your wealth uh from different Generations it can be a little hard to put money away you know for yourself for
00:32:02
your own uh retirement uh when you have so many other demands on it so it can be
00:32:09
can be a little hard to to get the the benefits you know always talk about you know the magic of compound interest well
00:32:16
that magic only comes when you leave it alone uh for a long time and leaving it alone can be just a bigger challenge
00:32:22
potentially in in that context thank you um both for just highlighting that piece
00:32:28
about trust again but then also you know and going back to something Seria said earlier as well about Longevity if we
00:32:36
think about this particular population they're they are living longer right and
00:32:41
then we we're waiting you know possibly thinking about the ways in which they
00:32:45
saved it earlier on if they have that information they have that knowledge it could really be great returns all right
00:32:52
on their investment um but having that knowledge is going to be really key um and I think both the report as well as
00:32:59
the app will really provide that educ those Educational Tools for um Hispanic Americans so I have one final uh closing
00:33:07
question for both of you uh Wharton CEO uh primary's um mission is to provide
00:33:14
resources to individuals and organizations that historically do not have access to the Wharton resources um
00:33:20
to overall uh impact the wealth Gap uh what action-oriented programs or initiatives can organizations and
00:33:28
individual support and or create to address the country's most pressing uh socio economic challenges well let me
00:33:35
just just toss in the so we have these high school students coming and um for us I'm me a finance Professor that's my
00:33:43
disciplin and so when I'm think about entrepreneurship to do with high school
00:33:46
students it's going to be in the finance realm but I think just in general bringing um young people to see how do
00:33:54
you execute on an idea how do you turn sort of a a pipe dream into logical steps work through them build build it
00:34:01
and then uh and and have have have a working product I think that is um uh people learn those skills they they
00:34:10
learn how to execute that's just going to be you know tremendously valuable to
00:34:14
them down the fut in the future so I know that Wharton has a lot of focus on entrepreneurship it's not us it's a lot
00:34:18
of a lot of different and also I shouldn't not just warness you engineering throughout the university uh
00:34:25
there's a lot of um interest in spreading uh entrepreneurship skills to uh the community and I I think that's
00:34:33
that's you know that's a gift that keeps on giving uh one I'd like to add one uh
00:34:41
additional influencer positive influencer in this conversation so we've talked about teachers we talked about
00:34:47
counselors um we talked I talked about financial professionals all very important but let me add a fourth
00:34:54
employers uh if you think about the role employ in fact some of the research that
00:34:59
we show uh indicate that employees trust their employers when they provide them benefits and other things um and
00:35:07
particularly in these different demographic groups the trust levels are higher with employers so one can imagine
00:35:14
working through the employers to communicate and provide this education leveraging that trust um and uh an ex a
00:35:22
simple example is uh if there's a matching grant that the employer is providing the employee then trying
00:35:32
providing them guidance to maximize their contribution so that they get the maximum match otherwise free money is
00:35:37
left on the table is a very simple example but the role of an employer to provide that guidance could also be
00:35:44
emphasized so so let's add two teachers to financial counselors to financial
00:35:48
professionals let's also add employers so it seems and hearing both of you talk it seems that this is um
00:35:56
multi-layered um at individuals from different parts of um the you know the journey um whether it be a teacher
00:36:04
whether or not once you finish school you're now employed and so the employer
00:36:07
plays a important role I just want to thank you both so much for your insights and you're just shedding light on the
00:36:16
financial well-being um particular with a particular focus on Hispanic Americans
00:36:21
we will add the links uh for our audience and so they can download the ferse app and to read the report
00:36:27
produced by the Tia Institute the Wharton Coalition for equity and opportunity remains committed to
00:36:33
elevating the work that our faculty and partners do to enrich their the lives of
00:36:39
others as well as serving as a go-to resource for evidence-based solutions to the problems of inequity and access
00:36:48
thank you so much