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Latina Equal Pay Day: Shining a Light on Financial Empowerment

Yanely Espinal
Yanely Espinal
02.10.24
Read time 1 minute

On October 3, 2024, we observe Latina Equal Pay Day - a day dedicated to highlighting the stark wage disparity that Latinas in the United States are facing. Recentcensus data shows that despite being one of the fastest-growing and most influential groups in our country, Latinas earn the lowest weekly median earnings for full-time wage and salary work among all major race and ethnicity groups.

In 2021, Latinas contributed $1.3 trillion to the U.S. GDP, and some economists have pointed out that this figure is likely too low as it doesn't account for unpaid work in areas like child care.

As we advocate for equal pay, we must also ensure that Latinas have the financial tools and knowledge needed to thrive in today’s economy. The reality for many Latinas - whether they were born in the U.S. or not - is a lack of financial literacy. This is often due to the complexities of the financial system and the fact that the public education system rarely includes courses about personal finance. These systemic issues make it challenging for Latinas to know where to even start!

Financial experts would suggest you start by tracking your income and expenses for at least a month to gain a clear picture of where your money is going. While full of good intentions, this advice focuses on individual spending habits and not on the lack of transparency in the financial industry.

One core example is remittances, or payments that many immigrant families send to loved ones back in their home countries. Remittances from the U.S. to low/middle income countries reached hundreds of billions of dollars in 2023, according to the World Bank and recent research found that Americans lost nearly $6 billion to hidden exchange rate markups. That’s money that could've been used for necessary expenses like groceries, transportation, school supplies, and more!

I have first-hand experience with this, being one of the 72% of Latina millennials providing financial support to family. After learning about the hidden fees in remittance services, I switched over to Wise, a company founded on transparency that never sneaks in mid-exchange rate markups which reduce the amount of money received by our loved ones in the end. I learned to always compare the amount received at the end of the transaction instead of comparing the costs and fees associated with sending remittance payments. All too often, remittance companies advertise “free” currency exchange services, but the fees are hidden in the multi-step process so we’d never notice it!

Wise is not just a service for sending and receiving money across borders; it’s also a resource for financial education and empowerment. By offering transparency and convenience, Wise helps you make informed decisions, whether you’re managing international finances or simply trying to understand the best ways to save and grow your money.

With the right tools and resources, we can all take steps toward a more equitable and financially secure future.

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.

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