Population Trends

The data pouring out from the 2000 census reveal many important trends affecting the outlook for and marketing of consumer credit. The census counted 281.5 million Americans, up by 13 percent from 1990 and the largest 10-year increase in our history. There were wide differences among the states in the growth of their populations and potential customers for consumer credit. The populations of Nevada, Arizona and Colorado rose by more than 30 percent, whereas only the population of the District of Columbia fell. Nevada's population rose by 60 percent.

One of the most striking revelations of the census is the growth of the Hispanic population. They now comprise 12 percent of the population. The term, "Hispanic," refers only to origin, not race. Thus, there are white and nonwhite Hispanics. Hispanics are clustered in the west and south. Of all Hispanics in the U.S., 44.7 percent live in the west. Hispanics make up nearly a third of the population of California, while non-Hispanic whites (herein after, NHWs) comprise just under half of the state's population, down from nearly three-fourths just ten years ago.

Census data also reveal some worthwhile information about the Hispanic market. They are generally younger than NHWs. Whereas 35.7 percent of Hispanics are less than 18 years of age, only 23.5 percent of NHWs are in this age group. At the other extreme, while just 5.3 percent of Hispanics are 65 or older, 14.0 percent of NHWs are in this age group. Hispanics also have much larger families and, therefore, greater needs for credit than NWHs. Among Hispanic households, 30.6 percent have five or more people, versus only 22.8 percent of NHWs households.

Family size affects a family's need for credit, but its education level influences the family's ability to earn income and to repay debts. Among Hispanics 25 years and older, 27.3 percent had less than a 9th grade education, versus only 4.2 percent of NHWs. On another measure, 57.0 percent of Hispanics had at least a high school education, while 88.4 percent of NHWs did so. Finally, whereas 49.3 percent of NHWs had full-time, year-round employment earning at least $35,000 annually, only 23.3 percent of Hispanics did so.

The census also revealed significant differences among the Hispanics by their origin. In relation to Hispanics from Mexico, Puerto Rico and Central and South America, those from Cuba had smaller families, were more likely to have at least a high school education, and were more likely to be earning at least $35,000 a year at a full-time job.