How to Build Wealth: 4 Lessons from Hispanic-Latino Investors

Wealth is as often a measure of financial success as it is a source of pride, an opportunity to live a full life and the chance to secure a lasting legacy. For Hispanic-Latino investors, the Spanish word riqueza encompasses this multidimensionality of wealth.

What wealth-building strategies do Hispanic-Latino investors use to achieve riqueza? To learn more about their unique perspective on wealth, Morgan recently completed its State of Hispanic-Latino Wealth Report,¹ featuring results of a survey of “emerging affluent” and high net worth Hispanic-Latino investors. Key among the findings: Like so many other investors, Hispanic-Latinos are focused on not just accumulating money, but also creating a future where their families can thrive and achieve goals once thought unattainable just a few generations prior.

Here’s a closer look at the barriers these investors faced and the strategies they use to overcome them.

Barriers to Wealth for Hispanic-Latino Investors

Hispanic-Latinos view wealth as a comprehensive concept that includes money, good health, living a vibrant life, nurturing strong family relationships and contributing to their community. Financially, Hispanic-Latinos are some of the strongest wealth builders in the U.S. In fact, Hispanic-Latinos grew their wealth at a higher rate than any other cohort from 2020-2022 and were the only group to increase their wealth in 2022, even as Americans from other backgrounds saw their wealth decline in the wake of the pandemic.²

While Hispanic-Latinos often define wealth as a means of creating independence and stability, many struggle with significant barriers along their path.

• Limited financial education is the top barrier, cited by 77% of survey respondents. Without an adequate understanding of key financial principles like compound interest, it can be a struggle to save and invest in a way that accelerates wealth building.
• Growing up in a household with limited funds is another key barrier, cited by 68% of respondents. When a family is doing all it can to put food on the table and stretch its budget further, it can be difficult to put away enough money now in the long-term investments required to help build wealth.
• Finally, struggling to access the key people and networks required to accelerate wealth generation is cited by 57% of respondents. Who you know is vital to gaining exposure and access to new opportunities, such as important partners, customers, jobs or investments.