Examination of the influence of informal obligations (social capital) on saving in individual development accounts: a comparison between Asians and Hispanics

Although the Hispanic population is known as one of the fastest growing minorities in the country, their saving behaviors continue to be understudied. The U.S. Census Bureau reported that between 2000 and 2010, the Hispanic population grew 43% from 15.2 million to 27.3 million (U.S. Census Bureau, 2010). The goals of this study were to examine how informal obligations of social capital influence saving in IDA programs. This study also sought to provide a comparison between Asian and Hispanic respondents, both native and foreign-born. A rotating system of informal savings known as tandas (names differ by culture) in certain Hispanic and Asian cultures are referred to as social capital in the context of this study. Current literature on the topic discussed four domains of inquiry: 1) social ties/trust, 2) financial literacy, 3) race/ethnicity and 4) nativity versus foreign-born, which were supported by the findings produced in this study. However, two predictions were proposed and subsequently negated and unsupported by the findings in this current study. Implications for social work are discussed, including older adults and mental health