Public Opinion Research Study of Latin American Remittance Senders in the United States October 18, 2006

2 Methodology Sample size2,511 Latin American immigrant adults* Dates of interviewsMay 3 – 25, 2006 Margin of error2 percentage points Language of interviewSpanish *does not include immigrants from Cuba, Haiti or English-speaking Caribbean nations

3 Demographics of Remittance Senders  The median age of regular remittance senders in the United States has decreased over the last five years.  Still a substantial percentage of immigrants that are older and have been in the U.S. for 10 years or more that send money to their families regularly.  Mexican and Central American regular remittance senders are significantly younger than other Latin American remittance senders.  More than three-fifths of remittance senders can be considered “working poor” or “lower middle class” with annual incomes of less than $30,000.

4 Age of Remittance Senders

5

6 Residency in the United States

7 Annual Household Income

8  The majority of Latin American immigrants in the United States were unemployed when they left their country.  The average salary of the Latin American immigrants that had a job was $150 a month.  Half of the Latin American immigrants found a job in the U.S. within a month of their arrival.  The average salary of the first job of Latin American immigrants in the U.S. was $900 a month – six times the amount they were earning in their country.  Latin American immigrants (legal and undocumented) find employment within a few weeks of arriving in the United States and they earn several times the amount they earned in their home country. IMMIGRATION – The key dynamic

9 Did you have a full-time job in Latin America before you came to the United States?

10 Average: $150 / month More or less, how much money did you make monthly at your last job in Latin America?

11 Average: 1 month When you first came to the U.S., how long did it take you to find work?

12 Average: $900 / month More or less, how much did you make monthly at your first job in the U.S.?

13  Our study indicates that 12.6 million Latin American immigrants living in the United States sent about $45 billion to their families during the last year.  The percentage of immigrants sending money on a regular basis to their relatives has increased from 61 percent in 2004 to 73 percent in  The average amount of each remittance sent from the U.S. has increased from $240 in 2004 to $300 in  The percentage of immigrants that use a bank or credit union to send remittances has increased from 8 percent in 2004 to 19 percent in REMITTANCES – United States to Latin America

14 Have you ever sent money to your family member in Latin America?

15 Have you ever sent money to your family member in Latin America?

16 Have you ever sent money to your family member in Latin America? By Country of Birth

17 Have you ever sent money to your family member in Latin America? By Annual Household Income

18 Have you ever sent money to your family member in Latin America? By Residency in the United States

19 Average: 12 times a year How frequently do you send money to your family member?

The average remittance to Latin America from the United States is $300.

21 How much money, on average, do you send?

22 How do you usually send money to your family in Latin America?

23 How do you usually send money to your family in Latin America?

U.S. Regional Distribution of Remittances to Latin America

25 Total Money Sent

26 (in millions) Total Money Sent Remittances to Latin America from the U.S

27 (in millions) Total Money Sent Remittances to Latin America from the U.S

28 (in millions) Total Money Sent Remittances to Latin America from the U.S

29 (in millions) Total Money Sent Remittances to Latin America from the U.S

30 (in millions) Total Money Sent Remittances to Latin America from the U.S

Investment Potential of Remittances

32 There is substantial evidence from the studies that the remittance process can help millions of Latin American and Caribbean families establish credit and have access to valuable financial services. Major Finding

33 Major Finding Insurance and banking investment products were most attractive to remittance senders and recipients in both the United States and LAC. Housing and educational investment products were also of great interest.

34 Financial Investment Products First and second choices