A recent study conducted in Puerto Rico highlighted the financial challenges faced by residents in the territory, especially in the aftermath of the Great Recession. The study revealed that many adults struggle to make ends meet despite having relatively low levels of debt. Factors such as being younger, having lower incomes, and lacking a college degree contributed to financial insecurity among Puerto Ricans. The study, co-authored by Harold J. Toro and Olivia Valdés, also found that wealth building and financial planning were minimal, with few adults having emergency savings or investment accounts.
Key findings from the study include high rates of financial fragility among Puerto Ricans, particularly among those aged 18 to 29, females, individuals with lower incomes, and those without a college degree. Many respondents reported spending more than their monthly income and lacking confidence in handling unexpected expenses. Additionally, fewer Puerto Ricans reported having student debt, unpaid medical bills, emergency savings, or retirement accounts compared to adults in the U.S. mainland.
The study attributed these financial challenges to limited job opportunities, stagnant wages, income disparities, and the economic impact of the Great Recession on Puerto Rico. The territory has also faced a financial crisis, natural disasters, and the COVID-19 pandemic, leading to persistent economic hardship for residents. The study, part of the National Financial Capability Study conducted every three years by the FINRA Investor Education Foundation, aimed to better understand how economic circumstances influence financial behaviors in Puerto Rico.
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