Young Latino Families Turn to Predatory Loans to Survive Pandemic Job Loss

Findings from the Abriendo Puertas/Latino Decisions National Parent Survey show that Latino parents and caregivers from the ages of 18 to 24 years old are facing deeper economic pressures than their older counterparts.  The economic recovery is at the forefront of concerns for young Latino families, with 36 percent of young Latino families indicating that help with wages and income is the most important issue. 

Essential for Economic Recovery

Latino families remain the engine of the American economic recovery, with 54 percent of young Latino parents and caregivers reporting that they continue to work outside of the house as essential workers during the pandemic. Despite this, 60 percent say they had their work hours cut or faced a pay cut and 37 percent of Latino parents and caregivers between 18-29 years old report losing their jobs. The pandemic is not only hurting essential workers, but Latino entrepreneurs, as well, with 43 percent of young Latino business owners saying that their business has shut down or seen a drop in revenue.  

It is crucial that public institutions invest in a two-generation approach that simultaneously focuses on the progress of children and the adults in a household.  A recent report by the federal Government Accountability Office (GAO), shows that this approach produces a higher return on investments and strengthens the family by increasing household income, improving educational outcomes, and reducing household stress.  

Two-generation approaches include childcare and early learning programs, which allow parents’ to work and continue their education during the crucial first five-years of child development. More than half (51%) of young Latino families say that the most important issue the government should address around education is access to daycare, early learning, and quality childcare while school is out. 

Public and private efforts at the local and federal levels must consider investing in two-generation approaches as a highly effective model that could expedite the COVID-19 economic recovery efforts- especially as young families are more likely to experience financial hardships during the pandemic. 

The road to economic recovery in the United States will not be an easy path for young Latino families. Our national survey shows the steep climb that families are facing, but our research gives us insight on the specific needs and solutions that we must get Latino families back on a path toward economic self-sufficiency and overall family well-being. 

Additional findings for Latino parents/caregivers 18-29 years old:

• 80% are seeking employment that offers benefits such as health insurance for their families- as 51% report losing their employer provided health insurance and 41% say that they have postponed or cut back on health-related expenses during the pandemic. 
• 79% want all children who are U.S. citizens to be eligible for stimulus checks, regardless of their parent’s immigration status.
• 74% say that paid sick leave for all workers should be included in relief programs so that families can take time off without losing pay if someone is sick.
• 73% report needing help stabilizing their housing situation including financial assistance to support rent or mortgage or lowering monthly payments.
• 72% want funding for state and local governments to continue providing essential services and not cut jobs.
• 71% say that expanding unemployment insurance should be included in relief programs so people could continue to receive unemployment benefits.
• 64% report needing additional support in the area of education counseling. 
• 61% say they need additional support with career counseling. This as 40% of young Latino families say that they have postponed or quit education or career related expenses as a result of their financial situation during the pandemic.
• 59% report needing additional services around emotional support counseling.