In the United States, more than 350 languages are spoken. English is predominantly spoken to communicate among the 1,500 different races and ethnicities residing in the country. This Fast Fact explores the significance of English proficiency in achieving financial wellbeing. Income and ownership rates of various assets and financial tools are analyzed among three English proficiency groups using survey responses of adults ages 21 or older.
Figure 4 Median Total Income, by English Proficiency and Age T to compreh he median tal income end a , wh was ge f ich or high in can d est dividuals fo iscou r those in rage in thpeo e the English ple “very with -on well limite ly an – d d well” gro “no En gl t well ish proficiency up at – no $t at all” 39,30 0 fro , f gr m ol oups u losing wed b was fin y 51 anci Eng yea al in lish rs o -stitu on ldl, wh y tio speakers ns ile th e English Proficiency and Citizenship Status Older Than Median Age Median Age or Lower altog at $ medi 36, an ag ether. 504e f , a or nd th the en “very the “n well ot well – well” – not gr at all” oup was grou 41 y p at $ ears 30 ol ,084 d. Indiv (Figid ur uals who e 7). speak only English had a median Diversity, Equity, and Inclusion Council to tal income of $36,689, while those in the “very well – well” group had a median income of $32,592. Individuals Ex Ap am pendix ining individuals by U.S. citizenship status, ownership rates were higher among citizens than non-citizens Figure 3 $34,428 Benefits who are n deci ot proficien sion makers t in E cng an lish also had help the clo lo se the fi west mnan edian cial literacy g to tal income ap i at n $1 th5, e wor 043.kp Th lace e citizenshi by implementin p rate for g or for all types of assets and savings vehicles, except for stocks and bonds among those speaking English very well Speak Only English Asset Ownership, by English Proficiency and Age March 14, 2024, #495 in impro dividu ving als who their sp existin eak o g nly fin En ancial wellb glish was eing 97 percent initiativ , wh es. ile fo T he 2 r th 023 E oseBRI Fi in the nan “very cia well l Wellbein – well” g E gr mplo oup,yer it was Surve 79y or well. Again, among citizens, those who speak only English had the highest ownership rates, follo $39wed b ,108 y those Figure 7 100% percent indicate. T d th he citi e most cited zenship act rate fo ions r in to add divid res uals s div inersity, thA e p“n pe equity ot nd well ix F, an ig –u no rd incl e t1 at all” usio n grin ou fi pnancia was th l wellb e loweein st at 5 g in5 itiativ percent es were who speak English very well or well, with those who speak it not well or not at all having the lowest rates. Not Well – Not At All Very Well – Well English Only Median Total Income, by English Proficiency and Citizenship Status 92% Race and Hispanic Origin Status of "Not Well – Not At of (Fig fering ure 1 d )iffe . rent types of solutions to accommodate different min ority groups, ensuring that financial counselors Among non-U.S.-citizens, the “very well – well” group had the highest rates of ownership across all asset types 88% 90% 85% or coaches were diverse in terms of race and ethniN city, and ot Citizen o Cfferin itizen g different types of solutions to accommodate and saving vehicles, followed by those who All" sp Eeak o nglish nly P En rofgl icish ien, cwit y G h rth ou e “no p t well – not at all” group having the 83% The Importance of English Proficiency 6 $34,188 di Among fferent th age g e grou rop up speaking Eng s. These initiativ lish not es can h well o elp r nclose th ot at all, e fin 72 ancial lit percent were eracy of gap Hisp amon anic o g th rig ose in and 1 with lo 9 percent wer Engl were ish lowest ownership rates. For example, 54 percent of English-only speakers in the U.S.-citizen group owned a Very Well – Well 80% $50,772 Race Hispanic Origin Not Hispanic Origin $31,284 pr Asian with oficiency. ou t a Hispanic origin (Appendix Figure 1). The most p rominent languages spoken among this English primary home, compared with 41 percent of those who speak English very well or well. However, among non- in Financial Wellbeing White 61 percent 5 percent $46,932 pr oficiency group were Spanish (71 percent), Chinese (1 69% 0 percent), other (9 percent), and Vietnamese (4 percent) U.S. citizens, only 26 percent of English-only speakers owned a primary home, compared with 30 percent of 70% Black 5 percent 3 percent 66% ( Appendix Figure 2). those who speak English very well or well (Figure 6). Asian 0 percent 19 percent In the United States, more than 350 languages are spoken. Despite the absence of an official national language 61% $39,300 This report was written by Samita Thephasit, EBRI Research Associate, with assistance from the Institute’s 59% Residual 5 percent 1 percent 60% (though some states have English as an official language), English is predominantly spoken to communicate $11,500 $36,504 research and editorial staffs. Any views expressed i 55% n this report are those of the author and should not be English Proficiency Overall Total 72 percent 1 28 percent Not Well – Not At All among the 1,500 different races and ethnicities residing in the country. According to a study conducted by Yunju 52% $22,845 $3S 1,o 28 u4 rce: 2022 Survey of Income and Program Participation (SIPP). ascribed to the officers, trustees, or other sponsors of EBRI, Employee Benefit 49% Research Institute-Education 50% $30,084 Nam, Sarah Richards-Desai, and Yingying Zen, households lacking an adult who is fluent in English have and Research Fund (EBRI-ERF), or their staffs. Neither EBRI nor EBRI-ERF lobbies or takes positions on The ownership status of four different types of assets and savings vehicles are analyzed: checking accounts, significantly lower rates of owning a home, a vehicle, and income-generating assets. The study also suggests that stocks and bonds, retirement assets, and primary homes. Stocks and bonds refer to individual stocks, mutu 2 al specific policy proposals. EBRI invites comment on this research. 38% 40% such households are less likely to own a house than those where at least one adult is fluent in English. Figure 6 Source: 2022 Survey of Income and Program Participation (SIPP). fu nds, government securities, and municipal and corporate bonds held outside of other pooled assets. Asset Ownership, by English Proficiency and Citizenship Status 100% 28% 30% 27% This Fast Fact explores the related topic of the significance of English proficiency in achieving financial 26% Appendix Figure 1 Appendix Figure 2 24% The English proficiency groups are further separated by income, with those who make below or equal to their Th ose who speak only English had the highest ownership rates for all four types of assets and savings vehicles, 90% wellbeing. Income and ownership rates of various assets and financial vehicles are analyzed among three English 21% Race aN nod t W H ei lls –p Na otn Aitc A lO l rigin V eS ry tW at eu ll – sW o ef ll "Not EW ngle ish ll O – n ly Not At Languages Spoken at Home Among "Not Well – Not At All" English 20% 90% respective median income being in one group and those who make more than the median making up the other. whil e those in the “not well – not at all” category consistently had the lowest ownership rates (Figure 2). Only 62 20% 85% proficiency grou 17% ps using survey respo 16% nses of adults ages 21 or older from the 2022 Survey of Income and All" English Proficiency Group 15% Proficiency Group 14% O wnership rates for all four types of assets and saving vehicles were higher among the higher income groups. percent of people in the “not well – not at all” group owned a checking account, which is 31 percent less than Program Participation (SIPP), controlling for age, income, and citizenship status. The U.S. Census Bureau 80% 80% However, there was a consistent pattern in the ownership rates, where those who speak only English had the th ose who speak only English (90 percent). There was also a disproportionate difference in ownership among 10% Race Hispanic Origin Not Hispanic Origin 76% describes 71% SIPP as “a nationally representative longitudinal survey that provides comprehensive information on 4% 4% highest ownership rates, followed by the “very well – well” group and then the “not well – 3 not at all” group. For retiremen t assets, with 56 percent of those who speak only English possessing such assets and only 72% 15 percent in White 61 percent 5 percent income, employment, household composition, and participation in government programs.” It also provides data Speak Only English example, 1 3 percent Not Weof ll – Engl Not At ish All -only speakers in the lo Very wer in Well – W come ell group owned stocks and bonds, compared with 70% Black 5 percent 3 percent th e “not well – not at all” group doing so. The “very well – well” group’s asset ownership was consistently in the 0% on economic well-being, family dynamics, education, wealth, health insurance, childcare, and food security. Median Age or Older Than Median Age or Older Than Median Age or Older Than Median Age or Older Than Asian 0 percent 19 percent 2 percent of those with very limited or no English-speaking ability (Figure 5). midd le. Source: 2022 Survey of Income and Program Participation (SIPP). Lower Median Age Lower Median Age Lower Median Age Lower Median Age Residual 5 percent 1 percent 60% 57% Stocks/Bonds Primary Home Retirement Asset Checking Account Demographics Total 72 percent 28 percent 54% Figure 5 Source: 2022 Survey of Income and Program Participation (SIPP). 51% Source: 2022 Survey of Income and Program Participation (SIPP). Asset Ownership, by English Proficiency and Income 50% Figure 2 The SIPP asks individuals if they speak languages other than English at home. If the answer is yes, SIPP proceeds 46% 100% Conclusion Asset Ownership, by English Language Proficiency to inquire about the individual's proficiency level in English. The responses are divided into three categories based Not Well – Not At All 41% Very Well – Well English Only 90% 40% on the respondents’ self-evaluation of their English-speaking ability: English only, “very well – well,” and “not 90% 85% Th is Fast Fact aims to shed light on the financial wellbeing of individuals who speak English at different levels of Asset Type Not Well – Not At All Very Well – Well Speak Only English well – not at all” (Figure 1). 32% 82% 30% Checking Account 62% 84% 90% p roficiency by examining their income and ownership of different types of assets and examining these factors by 30% 80% 28% 77% 76% Stock/Bond 4% 18% 23% 26% 26% age, i ncome, and citizenship status. According to the analysis, those who speak only English generally have the 24% 72% Retirement Asset 15% 43% 56% hi En gh gli est own sh Profi ership ciency an rates acr d Income oss all types o f assets, followed by those who sp 20% eak English very well or well and then Figure 1 70% 19% Primary 18% House 22% 39% 54% 20% 17% 10% 64% 9% th ose who speak English not well or not at all. The disparit 63% y in ownership of checking accounts between English- Demographic Breakdown, by English Language Proficiency Source: 2022 Survey of Income and Program Participation (SIPP). 13% 59% on Toly fu sp rth eakers and er examin th e th ose wit e financial state o h low English f th pr e in oficiency dividuals (90 by p En erce glish nt vs. lang 62 uag percent) e profic cou iency ld fur , me ther dian worsen total in the come is 4% 60% 2% 8% 2% 10% 1% 1% 1% 0% English Language Percentage of Median Total 0% Citizenship fin compared ancial well across each g being of tho ros up e with . The h loi w Engli ghest me sh di pr an t oficie otal in ncycome , as “con amo sumers who ng those below o do nor eq t hav ual e a to checkin the meg dior an a sage ving was s 5% Frequency 49% 4 2% Proficiency Population Income Median Age Rate acc foun ou d nt 50% am S may b pa ong nish th e pay ose Chine who in seg higher fees o spe Oak o ther nlV y iet Engl r m names ay b ish e , wit e miss Korean h $3 ing 9,10 credit Fren 8c. The n h -build Aext raibi ng c h opp ighest median Ru or st sun ianities Tag .” to al oFu tal in g, rth Hieri co ndime , Ur ngdu th wis g asF a rap en mon c, h g Creole Filipino (including Not Well - Not At All 7,724,816 3% $15,043 51 55% 0% in th di ose vidu who als who speak E are p nglish rofici very well o ent in English r well ten , wit d to h $3 hav 1,e hi 284gh , follo er me wed dian t by ot those al incom whoes. speak En glish not well or not at English Proficiency and Age 41% Patois, Non-Citizen Citizen Non-Citizen Citizen Non-Citizen Citizen Non-Citizen Citizen Very Well - Well 33,220,054 14% $32,592 41 79% Source: 2022 Survey of Income and Program Participation (SIPP). 40% Cajun) all , with $22,845. For those in the older age group, the median total income for those who speak only English was Stocks/Bonds Primary Home Retirement Asset Checking Account Speak Only English 199,960,000 83% $36,689 51 97% $3 Alth 4,42 ou8 gh th , foll e owed ability b to y those commun who 31% icate eff speak En ectively glish very in Engl well o ish r well can hav at $ e an i 34,18 mpact on 8, and th an en in by dividu those who al's fin sp ancial eak English Each English proficiency group is split into two age subcategories: those who are below or equal to their Source: 2022 Survey of Income and Program Participation (SIPP). 30% 29% Source: 2022 Survey of Income and Program Participation (SIPP). 28% 30% 27% 27% no wellbein t well o g, r no a stud t at all y suat $ ggests that h 11,500 (Fi omeown gure 4).ership rates among households with a language barrier would increase respective median age and those who are older. Among the older age group in all three English proficiency 5 as community language resources increase. These community resources can be facilitated by financial categories, ownership rates were generally higher for the different 20%types of assets and saving vehicles. However, 19% 20% 1 institutions. Not only should financial institutions work toward understanding the cultural needs of immigrants Coritz, Alli, Jessica E. Peña, Paul Jacobs, Brittany Rico, Joyce Key Hahn, and Ricardo Henrique Lowe Jr. (September there was a consistent pattern in the ownership rates, where those who speak only English had the highest 13% 2023). “New Population Counts for Nearly 1,500 Race and Ethnicity Groups.” In www.census.gov. United States Census and minority groups, but they should also provide language assistance (e.g., Bilingual staff, multi-language forms, ownership rates, followed by those in the “very well – well” group, with “not well – not at all” speakers having 9% 8% 8% 10% Bureau. Available at https://www.census.gov/library/stories/2023/09/2020-census-dhc-a-race-overview.html. work ing with local organizations to disseminate financial literacy pamphlets in multiple languages). Product the lowest ownership rates. For example, 61 percent of those who speak only English in the older age group 2 2% Nam, Yunju, Sarah Richards-Desai, and Yingying Zeng. “Household Language Barriers, Community Language Resources, To disclosur further ex e forms often amine the fin use hig ancial state o hly techni fcal terms t the individ hat ua ls in can b each e challe citizen ngingr g ou even p, m for edian nativ to e En tal income glish speakers is exam tin o ed. owned retirement assets, compared with 15 percent of those with very limited or no English-speaking ability 0% and Asset Ownership Among Immigrants and Refugees in Western New York: A Mixed-Methods Study.” Families in 6 Th Co e hi pelan ghd, est Cme raig, dian t Jake Spie otal in ge come l, and wa Bris dg aet mon Beg ard U.S. en, “ cit 2023 EBR izens wh I Fina o speak ncial Well only English being Empl , wit oy h e$50,77 r Survey: Em 2. The n ploye ext rs See (Figure 3). Median Income Higher Than Median Income Higher Than Median Income Higher Than Median Income Higher Than Society: The Journal of Contemporary Social Services, 103(1), 37–48 (September 3, 2021). Available at or Lower Median Income or Lower Median Income or Lower Median Income or Lower Median Income Financial Wellness Benefits as a Tool to Improve Worker Satisfaction and Productivity,” EBRI Issue Brief, no. 593 highest median total income for U.S. citizens was among the “very well – well” group, with $46,932, followed by https://doi.org/10.1177/10443894211023442. 4 Stocks/Bonds Primary Home Retirement Asset Checking Account (Em Correal ployee Be , Dubnef is, “ itI Resea mmigran rchts In fa sti citute, ng uniq Octue financial ober 19, 2023). challe Av nges aila.” ble Co atnsume https:/ r /ww Finan w.ci ebr ali P .org rot/ect publica ion Bu tion rea s/resea u (July 14, rch- those who speak English not well or not at all, with $31,284. Among those who are not U.S. citizens, the median 3 Survey of Income and Program Participation (SIPP). United States Census Bureau (November 15, 2023). Available at 2016) publica .Avail tions/i abl ssu e at e-bri https:/ efs/co /wnt went/202 w.consume 3-ebr rfin i-financial ance.gov/ab -well out be- ing us/-blog/i employer mmi-gr surv ants ey -- facin employers g-uniq-ue see -fina -fina ncial ncia -lchall -well en ness ges/ -be . nefits- Source: 2022 Survey of Income and Program Participation (SIPP). https://www.census.gov/programs-surveys/sipp.html. 5 as Nam -a-too , Richa l-to-im rds pro -Desai ve-wor , and Z ker-sat eng isfact (2021) ion- ( an sed e f -pro oodu tno ct te ivit 3). y .2 EBRI on Twitter @EBRI or twitter.com/EBRI LinkedIn: linkedin.com/company/employee-benefit-research-institute E E E E E E EBRI BRI BRI BRI BRI BRI BRI o o o o o o on n n n n n n T T T T T T Tw w w w w w wi i i i i i it t t t t t tt t t t t t ter: er: er: er: er: er: er: @ @ @ @ @ @ @E E E E E E EBRI BRI BRI BRI BRI BRI BRI o o o o o o or r r r r r r t t t t t t tw w w w w w wi i i i i i it t t t t t tt t t t t t ter.c er.c er.c er.c er.c er.c er.co o o o o o om m m m m m m/ / / / / / /E E E E E E EBRI BRI BRI BRI BRI BRI BRI L L L L L L Li i i i i i in n n n n n nk k k k k k ke e e e e e ed d d d d d dI I I I I I In n n n n n n: : : : : : : l l l l l l li i i i i i in n n n n n nk k k k k k ke e e e e e ed d d d d d di i i i i i in n n n n n n.c .c .c .c .c .c .co o o o o o om/ m/ m/ m/ m/ m/ m/co co co co co co comp mp mp mp mp mp mpa a a a a a an n n n n n ny y y y y y y/ / / / / / /emp emp emp emp emp emp empl l l l l l lo o o o o o oy y y y y y ye e e e e e ee e e e e e e- - - - - - -b b b b b b ben en en en en en ene e e e e e efi fi fi fi fi fi fit t t t t t t- - - - - - -re re re re re re res s s s s s search earch earch earch earch earch earch- - - - - - -i i i i i i in n n n n n ns s s s s s st t t t t t ti i i i i i it t t t t t tu u u u u u ut t t t t t te e e e e e e © 2024, Employee Benefit Research Institute, 901 D St. SW, Suite 802, Washington, DC 20024, 202/659-0670 | ebri.org 7 2 3 5 6 4 8