7 in 10 Latinas Are Motivated to Invest Because They Wish to Build Generational Wealth, Study Finds

A new study by J.P. Morgan Wealth Management highlights a growing trend of investment activity among Black, Hispanic, and Latina women, reflecting a broader shift in financial engagement among diverse communities.

The survey revealed that 51% of Latinas and 46% of Black women began investing outside of employer-sponsored retirement plans within the last five years, compared to just 24% of all respondents. This rise is attributed to enhanced access to resources and a growing recognition of the importance of financial empowerment.

But perhaps most notably, 7 in 10 Latinas 74% and 69% of Black women identified building generational wealth as a primary motivation for investing, with many respondents focusing on long-term stability and opportunities for future generations. Additionally, educational savings are a significant area of focus, as 82% of Black and Latino respondents reported maintaining or increasing contributions to 529 plans this year, outpacing the general respondent population by 11 percentage points.

As The Business Journals concluded from the study:

"Building generational wealth can be a game-changer for these communities. It's about more than just accumulating assets; it's about creating a legacy of financial stability and opportunity. When we see so many Black, Hispanic and Latina women prioritizing generational wealth, it tells us that they are not only thinking about their own futures but also about the futures of their children and grandchildren. This is how we begin to create lasting change"

The study also highlighted the investment preferences of younger generations, as more than half of Black and Latino millennial investors prefer an active role in selecting their investment portfolios, compared to 45% of Black Gen Xers and boomers and 37% of Latino boomers. This hands-on approach reflects increased confidence and a desire for control over financial decisions.

The findings suggest that expanding financial literacy and investment opportunities could help bridge wealth gaps and support long-term financial inclusion across diverse communities. As the study concludes: "these key findings provide valuable insights into the diverse behav