The Financial Shift in Mexico: From Savers to Investors—What's Driving the Change? | Latin Wealth

The Latin Wealth

Welcome to a new weekly series we are launching on the Latin Wealth platform, Wealth Wednesday! On Wealth Wednesday, we will be discussing trending news, Latino culture and topics surrounding business, host by @chrisbelloso and @ricoramirez86.

In today's episode, we're tackling two crucial financial topics that are making waves in both the United States and Mexico. First, we take a deep dive into the 10 most expensive cities in the U.S. to raise children. If you’re a parent or planning to become one, this is essential information. The average yearly cost of raising a child across the 100 most-populous U.S. metros is $22,989, but in these top 10 cities, those costs skyrocket. What’s even more striking is that five of these cities are in California, highlighting the significant financial strain families face in the Golden State. From San Francisco to Los Angeles, we break down how housing, childcare, healthcare, and other essentials contribute to these staggering costs and what families can do to manage them.

But it’s not just U.S. families feeling the financial pressure—across the border, a growing number of Mexicans are joining the investor class. In 2015, less than 1% of Mexicans had an investment account. Fast forward to today, and over 13% of the population is now actively investing. This surge represents a massive shift in financial culture, driven by both economic opportunities and the rise of fintech platforms making investing more accessible. But where exactly are Mexicans putting their money? We explore the investment landscape, from the dominance of government-issued treasury bonds, seen as the safest option in the country, to the growing interest in stocks facilitated by platforms like Grupo Bursatil Mexicano (GBM) and Actinver.

Additionally, we look at the role of high-yield savings accounts offered by fintech companies such as Nubank and Mercado Pago, which are attracting a new wave of savers with interest rates ranging from 10-15%. These accounts are not just savings options but are becoming critical tools for Mexicans looking to protect their wealth against inflation while earning competitive returns.

This episode is a must-watch for anyone interested in understanding the economic forces shaping family life in America’s most expensive cities and the investment trends transforming Mexico. Whether you’re a parent, an investor, or just curious about these financial dynamics, we’ve got insights that will help you navigate these complex issues.

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