The Average Income For Hispanic Americans Continues To Climb

The average income for Hispanic Americans continues to increase every year. In 2018, the average household income of Hispanic Americans was $51,450 according to For 2021, the average household income for Hispanic Americans is likely about $52,000.

The Hispanic population of the United States is roughly 60 million, making people of Hispanic origin the nation's largest ethnic or racial minority.

Hispanics constitute 18 percent of the nation's total population and will continue to grow as a percentage of the overall American population. As you can see from the chart below, the Hispanic American race has grown by roughly 1.8% since 2010.

Racial Makeup Of America

Average Income For Hispanics And Net Worth

According to the Urban Institute, African Americans have on average $19,049 in liquid retirement savings, compared to $130,472 for Whites, and $12,329 for Hispanics. As you can see, there is a massive net worth difference by race.

Average retirement savings by race - Average income for hispanic Americans

Now let's look at a survey of income and program participation from 2011. It shows the average Latino family has only $7,202 of wealth compared to roughly $110,000 in wealth for the average White family. Meaning, the wealth gap remains large.

Racial wealth gap by race (White, Black, Hispanic)

Now let's look at the income by race data provided by the Census Bureau in 2015 for some more perspective. Asian median household income leads the way at $78,000 roughly 30% higher than White median household income of $65,000.

African American income is the lowest at roughly $38,000 and Hispanic income is at roughly $45,000 which correlates with the retirement savings by race chart and wealth charts above.

A 100% difference between the highest income ($78,000) and the lowest income ($38,000) is significant. What is going on?

Income by race in America - Average income for Hispanic Americans

Racial Makeup Of Personal Finance Readers

Based on my survey of roughly 3,000 readers of Financial Samurai, one of the largest personal finance sites in the world with over 1 million pageviews a month, there is roughly a 30% overrepresentation of Asian readers (35% FS readers vs. 5% of US population).

There is a 5.3% underrepresentation of African American readers (7% FS readers vs. 12.3% of US population), a 11.3% underrepresentation of Hispanic readers (5% FS readers vs. 16.3% of US population), and a 15.7% underepresentation of White readers (48% FS readers vs. 63.7% of US population). The average income for Hispanic Americans will improve with more financial literacy.

Racial Makeup of Personal Finance Readers
Click to fill out the survey at the bottom

As Black and Hispanic Financial Samurai personal finance readers appear underrepresented and correspond with Census Bureau-provided lower income and wealth figures, and as Asian readers appear overrepresented and correspond with higher income and wealth figures, it seems clear there's a correlation between higher income/wealth and reading personal finance articles.

The Average Income For Hispanic Americans Will Improve

Read more personal finance sites. It's that simple since education is now free online.

Anybody who started reading Financial Samurai since its 2009 beginning has probably crushed the average American in terms of wealth creation because we've been talking about investing in the stock market, bond market, and real estate market all this time. Hispanic American readers have been more active in investing their savings, thereby growing their wealth faster than non-personal finance readers.

Readers of Financial Samurai learned about the proper asset allocation of stocks and bonds by age. Readers also learned about investing in real estate and getting ahead in their careers. As a result, there's no wonder why the income and wealth figures of personal finance sites are so much higher.

Yes, we can hypothesize that those who are already financially savvy care more about financial information than those who aren't. But we should also conclude that over time, those who read personal finance websites tend to get richer than those who do not.

Education Will Improve Financial Health

Educational attainment by race
A strong correlation with education and wealth

You don't have to be rich to get a great education because access to information is now free. Soak up as much information as you can and share your favorite articles with as many people as possible. I'm absolutely positive we'll see a tremendous improvement in our finances over the next generation.

Once you have your finances sorted out, you can focus your attention on more important things such as family, health, and happiness. And when your finances are really good, you can even spend your time and money helping other people.

Wealth Building Recommendation

Manage Your Finances In One Place: The best way to build wealth is to get a handle on your finances by signing up with Personal Capital. They are a free online platform which aggregates all your financial accounts on their Dashboard so you can see where you can optimize.

Before Personal Capital, I had to log into eight different systems to track 33 different accounts (brokerage, multiple banks, 401K, etc) to track my finances. Now, I can just log into Personal Capital to see how my stock accounts are doing, how my net worth is progressing, and where my spending is going. You also get your net worth amount sent to your inbox weekly.

One of their best tools is the 401K Fee Analyzer which has helped me save over $1,700 in annual portfolio fees I had no idea I was paying. You just click on the Investment Tab and run your portfolio through their fee analyzer with one click of the button.

They’ve also come out with their incredible Retirement Planning Calculator that uses your linked accounts to run a Monte Carlo simulation to figure out your financial future. You can input various income and expense variables to see the outcomes. Definitely check to see how your finances are shaping up as it’s free.

Personal Capital Retirement Planner Tool
Are you on track? Sign up for free to plan for your retirement future

About the Author: Sam worked in investing banking for 13 years at GS and CS. He received his undergraduate degree in Economics from The College of William & Mary and got his MBA from UC Berkeley. In 2012, Sam was able to retire at the age of 34 largely due to his investments that now generate roughly $250,000 a year in passive income boosted by his investments in real estate crowdfunding. Financial Samurai was started in 2009 and is one of the most trusted personal finance sites on the web with over 1.5 million pageviews a month.