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The level of financial
practices understanding and the financial status of the Hispanic
population in the central San Joaquin Valley is being researched by the
Center for Economic Research and Education of Central California at
California State University, Fresno.
Wells Fargo Bank granted $60,000 for the 10-month study, “Assessing
Financial Literacy among Hispanics in the California Central Valley,”
which began in September. The College of Social Sciences at Fresno State
also contributed $10,000.
Economics professors Dr. Antonio Avalos and Dr. Janice Peterson direct
the study. Avalos also is the research director of the economic research
center, a unit of the Economics Department in the College of Social
Science. Peterson is the center's director of education, conducting
workshops for local teachers and introducing new curriculum materials.
The study aims to gain better understand budgeting, spending, saving,
loans and credit, financial and retirement planning, investment and
other financial practices among Hispanics in the region.
Avalos said results will help the financial services sector better
appreciate customers’ needs, avoid inappropriate use of products and
inform education, regulatory and social policy about the need to improve
financial skills for consumers.
“Specifically, the study aims to produce information useful to Wells
Fargo and other banking and financial institutions in California,
particularly those serving regions with similar demographic
characteristics to those of California’s Central Valley,” he explained.
Avalos noted there is anecdotal information about finances of the 1.3
million Hispanics who live in Fresno and five neighboring counties.
However there have been no studies about how such factors as language,
immigration status and cultural experiences affect Hispanics’ ability to
take advantage of information, resources and products available through
the financial system.
Avalos said, “it is well known among participants in the financial
system that many Hispanics don’t trust banks and, thus, don’t use
checking accounts. “ He added that many Hispanics finance autos, homes,
furniture and other major items without understanding the terms and
documents they are signing.
The Bank on California and California Bankers Collaborative initiatives
are potential users of the study’s findings. The first is a state,
federal, community, regulatory and business effort focused on helping
people who don’t use banks or don’t have them available. The second is
an alliance of banks and federal regulators trying to reduce poverty
affecting low- and moderate-income populations through community
development.
Fresno has been chosen as one of the collaborative’s pilot cities. It is
the first to review such
issues as expanding capital investment in affordable housing and
community-related real estate
projects, increasing family income and wealth, simulating job retention
and job creation and supporting healthy environments and lifestyles.
The study will include a bilingual telephone-based survey, analysis of
financial data status and an assessment to determine the impacts of
income, age, gender, schooling levels, English-speaking ability and
other socio-economic and demographic characteristics of the Hispanic and
non-Hispanic population in the region.
Avalos said a final report is expected to be ready in June 2009.
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