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The Tanda: An Informal Financial Practice at the Intersection of Culture and Financial Management for Mexican American Families

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  • Miguel Quiñones

    (University of Minnesota)

  • Tabitha Grier-Reed

    (University of Minnesota)

Abstract

Tandas, the Mexican variation of lending circles, are an informal financial practice used among Mexican American communities. Tandas are an important asset in families’ resource management strategies, yet the practice is largely unrecognized in the resource management literature and devalued by traditional financial institutions. A qualitative study was conducted to investigate tanda participation of twelve Mexican American individuals across the midwestern United States. This study aimed to develop a better understanding of participants’ motivations to enter, the other financial management strategies employed by participants, and the tanda’s significance to family resource management. Findings revealed that participants’ motivations to participate in a tanda relate to financial accessibility and cultural preferences; participants utilize a range of complementary financial management strategies concurrently with the tanda; and participants perceived the tanda as conducive to their family’s financial goals and well-being, despite acknowledging the risks associated with participation. Developing a better understanding of the tanda provides insights into the ways culture serves as a conduit through which family and individual goals are realized, financial capability is bolstered, and uncertainty wrought by economic and political contexts is reduced.

Suggested Citation

  • Miguel Quiñones & Tabitha Grier-Reed, 2024. "The Tanda: An Informal Financial Practice at the Intersection of Culture and Financial Management for Mexican American Families," Journal of Family and Economic Issues, Springer, vol. 45(2), pages 343-353, June.
  • Handle: RePEc:kap:jfamec:v:45:y:2024:i:2:d:10.1007_s10834-023-09913-z
    DOI: 10.1007/s10834-023-09913-z
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    References listed on IDEAS

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    Cited by:

    1. Terri Friedline & Fenaba Addo, 2024. "Introduction to the Special Issue on “The Political and Economic Contexts of Families’ Financial Lives”," Journal of Family and Economic Issues, Springer, vol. 45(2), pages 251-255, June.

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