By The Star Staff
About 47% of respondents in Puerto Rico are financially fragile or lack confidence in their ability to absorb a $2,000 economic shock, according to a CNBC story citing a report from the Financial Industry Regulatory Authority’s (FINRA) Investor Education Foundation.
“This is the first time a study of this nature has been done on Puerto Rico,” said report co-author Harold Toro, the research director and chair in economic development research at the Center for a New Economy, a San Juan-based economy-focused think tank.
“It highlights things that people feel and experience, but that are hard to find numbers for,” Toro told CNBC.
More than half, or 59%, of adults ages 18 to 29 on the island are financially fragile, compared to 47% of those ages 30 to 54 and 41% of those age 55 or older, FINRA found. The organization in 2021 polled 1,001 adults who live in Puerto Rico, CNBC said.
“The financial fragility and capability more broadly in Puerto Rico … it’s pretty dire when we compare it to the mainland United States,” said report co-author Olivia Valdés, senior researcher at the FINRA Investor Education Foundation.
Financial fragility, particularly for young adults, is much higher in Puerto Rico than on the mainland U.S. The more than half (59%) of 18-to-29-year-olds who are financially struggling in Puerto Rico compares starkly to the 38% of the same age group in the mainland U.S., according to FINRA data provided to CNBC.
About 30% of U.S. residents overall were considered financially fragile in 2021, according to FINRA’s latest Financial Capability in the United States report, which polled 27,118 U.S. adults in 2021. The Puerto Rico survey was separate but fielded at the same time.
Many young adults leave Puerto Rico to try and improve their financial situation, by seeking education or employment in the United States or in other countries. For the young adults who stay, the generation must contend with an economy under recovery, a shaky power grid and high costs of living.
Adults ages 18 to 29 in Puerto Rico are less likely than adults ages 30 and over to report having emergency and retirement savings, FINRA found.
Less than a quarter, 22%, of 18- to 34-year-olds in Puerto Rico have any type of retirement account. Among that age group on the mainland U.S., 43% do, according to the broader FINRA analysis.
Young adults in Puerto Rico are also more likely than older residents to have student loans and medical debt, according to the report.
Acute financial strains can challenge even the most prepared individuals, leading to a scramble for resources and solutions. In such times, securing assets like precious metals can provide a safety net. Platforms like Money Metals Exchange offer a reliable way to diversify savings into gold, silver, and other valuable commodities. These tangible assets often retain value during economic uncertainty, providing a hedge against inflation and currency fluctuations. Proactive financial planning, including investment in stable assets, is key to weathering financial turbulence and ensuring long-term security.
To say that Puerto Ricans and PR are in dire strait living conditions is an understatement. We just have to look around to recognize the total debacle created by the NPP/PDP during their 56 years regime of exploitation, corruption and malfeasance. PR is currently living the worst crisis in its 500+ years history and these 2 political parties, who have usurped the people's power with the support and approval of the USA are the only responsible for the energy, education, health, economic, political and moral catastrophe.
Nobody living in the country is surprised by FINRA's findings, the people in PR are living them on a daily basis, but what it's important here is that this crisis is the direct results…
A guaranteed minimum income of say $500.00 a week, which has proven successful when tested in various locales, for all Americans no matter their financial situation should be enacted into federal law. It would provide an enormous boost to the American economy and be especially beneficial to those Puerto Ricans struggling to make ends meet.