November 2, 2009

Dr. Avalos (middle) and Dr. Peterson (second from right) present findings of their study on Hispanics' financial practices with (from left) Tim Rios and David Galassos of Wells Fargo Bank and Pat Clary (far right) of United Way of Fresno County.

A California State University, Fresno study gauging the financial practices of Hispanics in Central California will bolster efforts by United Way of Fresno County to improve the financial stability of Fresno residents through such efforts as its Bank on Fresno initiative.

The study, “Assessing Financial Literacy among Hispanics in the California Central Valley,” was funded by Wells Fargo Bank. The research was conducted by Fresno State economics professors Dr. Antonio Avalos and Dr. Janice Peterson through the university’s Center for Economic Research and Education of Central California.

Tim Rios and David Galasso of Wells Fargo Bank present a check for $10,000 to Pat Clary of United Way of Fresno County while Fresno State economy researchers Dr. Antonio Avalos and Dr. Janice Peterson observe.

Earlier this year, the research team sampled 1,336 people from Fresno, Kern, Kings, Madera, Merced and Tulare counties. They asked about the respondents’ financial situations and practices; financial attitudes and behaviors; banking and credit relationships; use of nonbank lenders (such as payday lenders); mortgage status; and remittances.

The study aimed to gain better understanding of budgeting, spending, saving, loans and credit, financial and retirement planning, investment and other financial practices among Hispanics in the region.

Among the findings announced at a press conference today, Nov. 2:

• While 45 percent of Hispanic respondents indicated that they wished they knew more about money management, only slightly more than 20 percent of non-Hispanic respondents felt the same desire.

• The majority of both Hispanic (73 percent) and non-Hispanic (68 percent) respondents reported “learning on their own” as their source of knowledge about personal finance. Less than 6 percent of Hispanic respondents and 16 percent of non-Hispanic respondents said they learned about personal finance from a financial professional.

• Fewer Hispanic respondents (79.4 percent) than non-Hispanic respondents (99.1 percent) reported ever having had a bank account.

The study provides a baseline for further research into this topic that can eventually help Hispanics understand financial services and how to use them, Avalos said.

Tim Rios, senior vice president and community development manager for Wells Fargo, which granted $60,000 for the study, said the findings were similar to what experts believed existed within the Hispanic community. “But now we have proof of these elements and can address some of them with services and programs that will help Hispanics with their financial knowledge and practices,” said Rios.

David Galasso, Wells Fargo's Central California regional president, said the study shows just how important providing access to financial literacy is to Central Valley communities.

"We're going to do what we can to mobilize and support the effort to bring more financial literacy resources, including Wells Fargo's Hands on Banking education program, available for free, to help people living in our communities become more financially successful."

The Hands on Banking program helps people take charge of their finances and reach their money-management goals. Information is geared toward children, teens, young adults and adults.

Wells Fargo, the oldest and largest financial services company with headquarters in California, has more than 90 locations and more than1,500 team members throughout Central California.

At the press conference, Wells Fargo presented a $10,000 check to United Way for the Bank on Fresno initiative. It will be directed toward outreach and financial education for Fresno’s Hispanic community using vignettes to be shown on KFTV, Channel 21, the region’s Univision network station.

Fresno is one of seven cities selected for Gov. Schwarzenegger’s Bank on California initiative, a nontraditional approach to give every resident access to mainstream financial institutions. Bank on Fresno is a joint effort with the Fresno mayor’s office, Federal Deposit Insurance Corp., local financial institutions and nonprofit organizations, with United Way as the organizing agent.

In the second reporting quarter, just over 17,000 checking and savings accounts have been opened, 7,000 more than the goal for the entire two-year program.

“This collaboration between Fresno State, Wells Fargo, Univision and United Way provides a catalyst that brings programs and outreach to the Hispanic community for financial stability” said Pat Clary, president and CEO of United Way of Fresno County.