A study sought to identify elements of the household economy, family structure, and parenting practices that help explain the aversion many Hispanic-American parents feel toward organized preschools. Data were drawn from a 1991 national survey of families with young children conducted by the National Center for Educational Statistics (NCES) and interviews of four Hispanic-American mothers. The NCES survey indicated that among Hispanic-American families with a mother employed full-time, 32 percent utilized a formal child care organization, compared to 55 percent of black families and 43 percent of white families. An analysis of the survey results found that the use of formal child care by Hispanic-American families was positively related to maternal employment, family income, and maternal educational level. Intact two-parent families, families with more than one child, and families that provided a more literate environment for their children were more likely to use formal child care than single-parent families, single-child families, and families providing less literate environments, respectively. The views of four Hispanic-American mothers on formal child care addressed the cultural congruence between the mothers and the preschool organization and the mothers' concern with learning, socialization, and school readiness. Overall, results suggest that preschool policy initiatives must take into account the more complex cultural values and expectations of Latino families. (MDM)