Are Latina Women's Financial Struggles a Result of Generational Trauma?

Latina holding money in her hand with thoughtful expression
Luz Media

The financial narrative of Latina women is more than just a story of numbers and economic data. It's deeply intertwined with histories of marginalization, inherited wounds, and the complexities of intersectionality. For Latina women, their financial experiences and challenges do not only pertain to their personal choices or immediate environments; it also carries the weight of generational money trauma.


Can the struggles of our immediate family shape our own relationship with money?

woman in white cap-sleeved shirt and blue pants walking beside girl in gray tank topPhoto by Sai De Silva on Unsplash

Women of color, particularly Latinas, have a distinctly unique relationship with money and finances. If persistent challenge was involved, this bond can inextricably be linked to a trauma response, one that has been woven into the fabric of their identities over generations. This isn't just about struggling to make ends meet; it's about living with the shadows of a past fraught with financial hardships.

These women don't just grapple with the present financial realities; they also bear the weight of the collective experiences of their ancestors — stories of deprivation, struggle, and relentless pursuit of better opportunities. Generations of living in low-income circumstances, facing barriers to quality education, and having limited pathways to homeownership have left a deep-rooted legacy of financial anxiety.

Many Latinas, whether first-generation immigrants themselves or descendants of immigrants, deal with an added layer of challenges. Language barriers, unfamiliarity with a new country's financial systems, and a pervasive fear of being perceived as 'other' create additional hurdles. These obstacles aren’t just about assimilating into a new culture but also about navigating the socioeconomic disparities often accompanying immigrant status.

Embracing leadership while battling wage gaps

Latina woman focused on her work projects

Nevertheless, as societal structures shift and evolve, more Latina women are stepping up as the primary earners for their families. The increasing prevalence of Latina ‘breadwinners’ underscores the critical role they play in their families' financial well-being. Yet, with this newfound responsibility comes the shadow of the Latina wage gap, an unjust discrepancy in earnings that highlights the racial and gender inequalities deeply rooted in the job market.

Latina women earn significantly less than their white male counterparts and even less when compared to women of other racial backgrounds. This wage gap is a testament to the systemic disparities in the workforce and adds to the financial pressures Latina women can feel.

Navigating professional spaces as a Latina woman often means confronting the wage gap and a range of challenges that impact mental and emotional well-being. Imposter syndrome, the persistent feeling that one doesn't belong or is undeserving despite evident success, is a common phenomenon among Latina professionals. This internalized self-doubt and external prejudices can lead to toxic work dynamics, further exacerbating the stress associated with financial responsibilities.

How can we take steps towards better financial habits?

a woman sitting at a table looking at her cell phonePhoto by Vitaly Gariev on Unsplash

Understanding the money struggles many Latina women have faced over generations is the first step. So, what can we do to feel better about our finances?

First, learning essential financial skills can make a big difference. Simple classes or online tutorials about budgeting and saving can help. It's also good to break the stigma around discussing personal finances and talk about money with friends or join groups where people share their financial wins and challenges. Finding a mentor, someone who's been there and can give advice can be a game-changer.

Another big step towards a brighter financial future is championing fairness in pay. When everyone gets paid fairly for their work, we all benefit. So, how can we make this happen? First, staying in the know is key. By understanding what people with skills like ours earn, we can better advocate for our worth. Voting plays a part, too, supporting those who fight for Latina equal pay in the political arena.

The Latina wage gap isn't just about numbers; it's rooted in deeper issues like discrimination, limited educational chances, and racial biases. This isn't a simple fix, but by supporting groups that push for equal pay and using social media to shine a light on these challenges, we can make a difference. It might feel like an uphill battle at times, but step by step, we can turn financial stress into a sense of empowerment and control.

a woman giving the side eye to a man

Have you ever met someone who seems overly confident, self-centered, or even downright rude? Maybe they constantly talk about themselves, disregard your feelings, or even manipulate situations to their advantage. And, if you're anything like us and countless other Latinas, you might've thought, is this person just a purebred a**hole, or are they a narcissist?

Keep ReadingShow less
woman surrounded by colorful illustrations
Image by Sayuri Jimenez.

Nathalie Molina Niño has never been one to shy away from breaking barriers, and now, she’s focusing her attention on a new mission: demystifying corporate boardrooms for women, especially Latinas. Molina Niño is the President of Known, an asset management and financial services firm, a veteran tech entrepreneur and builder capitalist, and a board member at the iconic lingerie Brand, Hanky Panky, and others.

Like many corporate boards, Hanky Panky hadn’t publicly disclosed its board composition until recently. After the brand survived the challenges of the COVID-19 pandemic, Molina Niño decided it was time for more women, specifically more Latinas, to know what it means to be on corporate boards.

Coincidentally, the decision to finally be more vocal about this topic aligned with the start of Hispanic Heritage Month, which served as the perfect kick-off to the work.

"Something that rarely gets talked about and I think almost gets kept opaque by design is boards,” she explains in a recent Instagram announcement. “[This Latinx Heritage Month], that’s what I’ll be talking about.” Her goal? To equip more Latinas with the knowledge they need to navigate onto for-profit boards, where they can thrive and build multi-generational wealth.

For-profit corporate boards often feel like an exclusive club. And in many ways, they are, especially for Latinas, who hold the smallest percentage of board seats in Fortune 500 companies compared to other racial groups. According to the latest report from Latino Board Monitor, while Latinos hold 4.1% of these board seats (compared to 82.5% held by white people), only 1% go to Latinas. Molina Niño, a first-generation American of Ecuadorian and Colombian descent, is part of this boardroom minority.

When asked about her experience as a Latina board member during a recent Zoom interview, she said, “It’s been lonely. There’s not a lot of Latinas on boards.” She went on to explain that even serving on boards of Latina-founded businesses gets lonely because, “A lot of the times, people who serve on their boards represent their investors and, as a result, [...] you still don’t see a lot of Latinas on those boards.”

This lack of representation drives Molina Niño’s determination to increase Latina presence in corporate boardrooms. By sharing her insights, she hopes to give Latinas a roadmap to claim their seats at the table. “If you don’t know where to go, it’s impossible to figure out how to get there,” she says.

The Road to the Boardroom

Getting onto a for-profit corporate board isn’t an overnight achievement, but it’s not an unattainable dream either. People often think you need to be a CEO or have a certain type of background, but that’s one of the biggest myths about boards in Molina Niño’s experience. What they’re really looking for is expertise — whether that’s in finance, marketing, sustainability, or even technology. If you have that expertise, you’re already an asset. It’s simply a matter of which road you should take.

Understanding what boards are and how they operate is key to unlocking opportunities. For-profit boards serve as the governing body for companies, overseeing direction and financial stability, and guiding CEOs and executives in decision-making. But Molina Niño emphasizes that not all for-profit boards are created equal.

“There are two kinds [of for-profit boards] [...]. There’s the publicly traded business board and then, on the privately held side, there are, I would argue, two types of boards [...] the traditional business board and the venture-backed business board,” explains Molina Niño. Traditional businesses are often family-owned or long-established and may only form boards to meet requirements, like securing financing or transitioning through an ESOP. Venture-backed boards, on the other hand, are typically filled by investors who hold major stakes in the company.

According to Molina Niño, understanding the difference between them is how you can create a successful strategy. With publicly traded business boards, the whole world is privy to them, so, “The way that you get in there is a little bit more transparent. Sometimes those publicly traded companies will hire a recruiter to help them find new board members,” explains Molina Niño. For private companies, on the other hand, there’s no legal requirement to make announcements. As a result, most people don’t know anything about them or their inner workings.

“Usually what happens in traditional businesses that don’t have venture-capital investments is that the Founders, Executives, or the board members, if one existed already, they usually go to their friends,” and people they deem experienced to fill board seats. In other words, it’s the founder’s decision, and that’s an entirely different approach than hiring recruiters. When it comes to venture-backed business boards, the seats on the board are filled by whichever investor writes the biggest check.

This is why an understanding of the different types of boards and acknowledgment of their own strengths is what will help Latinas define a sound strategy. Whether that’s working with a recruiter, networking and connecting with founders to build trust, or making the biggest investment.

The Path for Latinas

For Molina Niño, the key to getting more Latinas into corporate boardrooms is education. Knowing what a board looks like and how it functions is how you can position yourself to get on it. In openly talking about this, without the mystique it’s usually shrouded in, Molina Niño is providing women, especially Latinas, with invaluable insights. “If we had Latinas understanding what are the three types of for-profit boards I think that, on their own, they would be able to figure out what their best chance is and adjust their careers to make themselves more competitive,” states Molina Niño.

When asked about the impact of increased Latina representation in boardrooms, Molina Niño flips the narrative. “Boards don’t help Latinas by offering them seats; Latinas help businesses thrive by being on their boards,” she says. “The whole point of sitting on a board is that you have experience and expertise, and as Latinas, you also have some cultural experience that everyone wants. [...] At the end of the day, we [Latinas] have to realize that we have a ton to offer and we have to be selective about where we put that expertise,” she explains.

As demand for access to the Latina consumer rises, Molina Niño predicts that more Latinas will find themselves recruited into boardrooms. But she’s not content to sit back and wait for that moment. By openly sharing her journey and insights, she’s making sure other Latinas know their worth and have the tools to claim their place at the table. “I realized that quietly being on boards that helped me personally is not helping other Latinas. [...] I was lucky enough to have friends who could advise me and share their experiences, so that’s why I’m doing this,” she stated.

With Hispanic Heritage Month as the backdrop, Nathalie Molina Niño’s mission is clear: “My goal is just to give Latinas enough information so they can make a plan for how to eventually get on a board that they’re paid to be on and that will eventually help them build generational wealth.”

flags of latin american countries fly behind performers wearing culturally traditional clothing

Ever noticed how September in Latin America is just one big celebration? As we wave goodbye to summer and avoid winter as long as we can, the streets come alive with parades, music, and festivities. Many Latin American countries celebrate their freedom this month, commemorating their hard-fought battles for independence from colonial domination. Let’s dive into these significant days and understand what makes each unique.

Keep ReadingShow less