Wealth gap hits Hispanics in US

Hispanics have overtaken blacks in the US, but have less cash

A United States study shows Hispanic households are up to eight times less well-off than Americans overall.

They are typically younger, have lower incomes and save less, partly because they send over $10 billion a year to relatives back home, researchers said.

The study showed the average Hispanic household's wealth was $11,500 against $86,000 for US households as a whole.

Household wealth was calculated as the family's total assets, including homes and cars, minus their consumer debts.

People of Hispanic origin are the largest minority group in the United States.

Dollar divide

The study by the Consumer Federation and Freddie Mac, the mortgage finance company, used 2001 Federal Reserve data released this year.

"Our analysis shows there is a significant wealth gap between American Hispanics and other American households," said Stephen Brobeck, executive director of the Consumer Federation of America.

According to the figures, Hispanics also tended to have less long-term financial planning than other demographic groups.

They were also less likely to own property - a key source of household wealth in America - with 48% of Hispanics owning their own homes compared to 68% for the rest of the population.

Hispanics in the US are a median average of nine years younger than their fellow countrymen, at 26 years.

The majority have spent less time in America compared with their peers, thereby having had less opportunity to capitalise, the study said.

A lack of English proficiency "has narrowed both their employment and savings potential," the report added.