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New study reveals high levels of financial insecurity among Puerto Rican adults


A recent study conducted in Puerto Rico has highlighted the financial challenges faced by residents in the territory as a result of economic turmoil stemming from the Great Recession. The study, based on findings from the National Financial Capability Study, revealed that many adults in Puerto Rico struggle to make ends meet despite having relatively low levels of debt. This is especially true for younger individuals, those with lower household incomes, and those without a four-year college degree.

The report, co-authored by Harold J. Toro and Olivia Valdés, found that about half of Puerto Rican adults surveyed reported being financially fragile, lacking confidence in their ability to handle unexpected expenses. Many struggle with managing daily expenses, with a high percentage spending more than their monthly income. While fewer Puerto Ricans reported having student or medical debt compared to the mainland U.S., many lacked emergency savings and retirement accounts.

The economic challenges facing Puerto Ricans can be attributed to limited job opportunities, stagnant wages, and income disparities that have persisted since the Great Recession. The territory’s financial crisis, which included a default on debt payments and austerity measures imposed by a federally appointed oversight board, further exacerbated the situation. Natural disasters like Hurricane Maria, earthquakes, and the COVID-19 pandemic have also contributed to ongoing economic hardship and forced many residents to migrate to the mainland.

The study, conducted every three years by the FINRA Investor Education Foundation, surveyed nearly 1,000 Puerto Ricans to better understand how economic circumstances influence financial behaviors. This was the first time Puerto Rico was included in the survey, reflecting a need for more information on the financial capability of households in the U.S. territory.

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www.nbcnews.com

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