In a small Orange County classroom last week, students were learning how to calculate percentages, tabulate interest and budget their money. But this was no ordinary classroom.
The Spanish-speaking students in Santa Ana were mostly working-class parents, trying to get a better handle on managing their money. And to do that, they've landed back in school.
For The Record
Los Angeles Times Saturday November 26, 2005 Home Edition Main News Part A Page 2 National Desk 1 inches; 38 words Type of Material: Correction
Financial course -- An article in the Nov. 14 California section gave the wrong title of a financial literacy course run by Operation HOPE of Los Angeles. It is "Banking on Our Future," not "Banking on Your Future."
"I'm trying to learn how to control my finances and understand the interest rates," said housewife Margarita Victorin. "What I'm seeing is that if you plan things out, you can use credit cards and never pay any interest."
Free financial literacy classes have become increasingly prevalent throughout Southern California, where new immigrants often avoid commercial banks, sometimes patronize check-cashing businesses with high fees and frequently borrow at high interest rates.
"These days, every nonprofit, every bank seems to offer financial literacy classes," said Anne Stuhldreher, a research fellow with the New America Foundation, a Sacramento policy institute that studies wealth and savings. "The need is great."
Statistics reveal major gaps among immigrants in their use of financial institutions and their understanding of basic finance. Studies show that 28% of Californians do not use banks, and that percentage is far greater among immigrants.
Sergio Bendixen, a public opinion researcher who co-wrote a 2001 study of Latino immigrants in Miami and Los Angeles, said the education efforts could reverse a troubling trend. He estimates that 60% of Latino immigrants do not have bank accounts and only 23% own homes.
His survey showed that 55% of respondents did not have credit cards.
Efforts to boost financial literacy are underway nationwide, but nowhere are they more obvious than in Southern California, where classes are offered daily. Major banking chains, including Bank of America, Union Bank of California and Wells Fargo, support such efforts with instructors and free food for students.
Bank of America gives money to nonprofit groups such as Operation Hope in Los Angeles to conduct "Banking on Your Future" seminars at local schools. Citing banking industry studies, BofA spokesman Michael Chee also estimated that 60% of Latinos in California do not have bank accounts.
In Santa Ana, the class last week was part of Wells Fargo's efforts. It was held at Willard Intermediate School near downtown and is repeated about 20 times during the school year. It draws as many as 30 parents per session, official said.
