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Puerto Rico's Youth Grapple with Financial Instability
A new study reveals that young adults in Puerto Rico are facing significant financial hardship, with high rates of financial fragility compared to the mainland U.S.
English
United States
EconomyLabour MarketFinanceLatin AmericaPovertyEmploymentYouth
Financial Industry Regulatory Authority Investor Education FoundationCenter For A New EconomyAdvantage Business ConsultingFederal Reserve Bank Of New YorkEl Comeback
Harold ToroOlivia ValdésVicente FelicianoFernando Tormos AponteAlejandro Talavera CorreaAna Laura Miranda
- What percentage of adults in Puerto Rico are considered financially fragile according to the FINRA study?
- A study by the FINRA Investor Education Foundation found that 47% of adults in Puerto Rico are financially fragile, meaning they lack the ability to absorb a $2,000 economic shock. This is significantly higher than the 30% national average in the U.S.
- How does the financial fragility of young adults in Puerto Rico compare to their counterparts in the U.S.?
- Young adults (18-29) in Puerto Rico are disproportionately affected, with 59% experiencing financial fragility, compared to 38% of their peers in the U.S. This is attributed to factors such as limited job opportunities, lower wages, and a struggling economy.
- What are some of the key factors contributing to the financial strain faced by young adults in Puerto Rico?
- The high cost of living in Puerto Rico, coupled with unreliable public services like electricity, further exacerbates financial strain for young adults. Many are forced to leave the island in search of better financial prospects elsewhere.
- What initiatives are being undertaken to attract young professionals back to Puerto Rico and improve their financial situation?
- Initiatives like El Comeback are attempting to address the issue by attracting professionals back to the island with competitive salaries and benefits packages. However, challenges like the high cost of living and unreliable infrastructure continue to pose obstacles.
- Despite recent economic improvements in Puerto Rico, what challenges persist that hinder financial well-being, particularly for younger generations?
- While Puerto Rico's economy has shown some signs of improvement, with a rising minimum wage and employment growth, the median household income remains significantly lower than in the U.S. The long-term economic struggles since 2006 have deeply impacted younger generations.