State Farm Survey Reveals Latinas Worry About Their Family’s Financial Future but...

State Farm Survey Reveals Latinas Worry About Their Family’s Financial Future but Aren’t Taking Action

Identifies Women's Financial Confidence in Three Metropolitan Areas including Houston


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BLOOMINGTON, Ill., Dec. 19 /PRNewswire/ — A new survey released today by State Farm(R) finds that 73 percent of Houston Latinas are worried about their financial future. Family matters most with 80 percent worrying about their family’s financial future, yet only 8 percent making major changes to their financial portfolios.

State Farm recently conducted a survey to understand how Latinas living in key Hispanic metropolitan areas are responding to today’s tough economy and what they know about planning for their family’s financial future. The survey was fielded in Miami, Houston and Los Angeles.

Insights from Houston reveal that 42 percent of Latinas have rethought their financial strategies within the past six months. Most, however, have not made changes significant enough to provide stability and security for their future. 42 percent conducted research but, ultimately, didn’t make changes and 33 percent made minimal changes, such as moving money from checking to savings accounts. When it comes to financial confidence, 39 percent of Houston Latinas are much less sure of their financial prowess and don’t really think they’d be able to make it on their own compared to 34 percent of their non-Hispanic counterparts.

“State Farm’s survey demonstrates that Latinas are in need of more financial education in order to make informed and accurate decisions that go beyond a standard savings or 401k plan,” said Nancy Jimenez, State Farm Agent. “It’s important for Latinas to seek advice not only from family but also from reputable experts, such as financial planners or insurance agents, to ensure that their and their families’ financial future is more secure during this difficult economic environment.”

State Farm advises Latinas to act now and take the following steps to ensure their financial profiles are ready for the unexpected:

— Review credit cards and checking accounts to assess all purchases, large and small, and tally where money is spent. Then, prioritize to identify where to cut expenses.

— Calculate monthly expenses, including any money sent to relatives in foreign countries, and make sure to have enough money in savings to cover at least three months of costs.

— Seek financial advice from an expert to ensure financial plans are secure. These experts also can discuss the right mix of insurance and financial tools.

— Learn more about financial issues in the United States. Speak to an expert who can offer insights into how finances in the United States differ from your country of origin.

Additional Houston Findings

When Latinas look for financial guidance, it is clear that trusted sources such as family and friends come first. Sixty-eight percent of Latinas in Houston turn to their spouses, parents, adult children or friends for financial advice, while only 25 percent turn to experts, including financial planners, insurance agents or accountants. Aside from broad insights, findings indicate that Latinas in Houston need stronger protection. Details include:

— Lacking adequate savings. Perhaps they’re worried about how they’d manage in the future because many of them don’t have much of a safety net to fall back on should times get tough. If they had to live on their savings with their current expenses, nearly eight in ten (77 percent) only think they’d last up to 6 months, at the most.

— Not in their hands. Forty-two percent don’t take care of the financial matters in their household.

— Let’s Not Talk About It. Maybe it just isn’t brought up enough. Nearly half (47 percent) think seeking personal financial guidance would be more painful than seeking romantic advice.

— Challenging Situations. Topping the list of most stressful moments are the purchase of a new home (15 percent), welcoming a new child (9 percent), and a catastrophic accident or illness in their family (8 percent).

Latinas who need help with their insurance and financial needs can visit www.statefarm.com to locate an agent or get more information.

About the Financial Survey

State Farm’s survey was conducted by Kelton Research between Nov. 7-13, 2008 using random digit dialing of listed and unlisted numbers. Quotas were set to ensure reliable and accurate representation of the total U.S. female population ages 25-65. Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of percentages expressing results. In this particular study, the changes are 95 in 100 that a survey result does not vary, plus or minus, by more than 3.1 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.

To view the complete survey results, questions and methodology, please visit www.statefarm.com.

State Farm Life Insurance Company (Not licensed in Mass., N.Y. or Wis.);

State Farm Life and Accident Assurance Company (Licensed in N.Y. and Wis.);

Home Office, Bloomington, Ill.

State Farm International Life Insurance Company Ltd.

Aurora, Ontario

About State Farm

State Farm insures more cars and homes than any other insurer in the U.S., is the leading insurer of watercraft and is also a leading insurer in Canada. State Farm’s 17,000 agents and 68,000 employees serve about 80 million policies and accounts: more than 78 million auto, fire, life and health policies in the United States and Canada, and more than 1.9 million bank accounts. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 32 on the Fortune 500 list of largest companies. For more information, please visit statefarm.com(R) or in Canada statefarm.ca(R).

SOURCE State Farm Insurance

State Farm Survey Reveals Latinas Worry About Their Family’s Financial Future but Aren’t Taking Action