Black Americans Show High Levels Of Financial Well-Being A study finds Black communities are modeling financial resilience and grit in unprecedented ways. • Susan Rupe
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lack Americans make up a disproportionate percentage of lower income groups, yet have higher financial well-being scores than the general population. That was a key finding of a study, Black America’s Financial Wellness, authored by Timi Joy Jorgensen, assistant professor and director of financial literacy at The American College. The research evaluates the main factors impacting financial well-being in the
Black community to assess ways the financial services industry can guide Black Americans toward better financial success. The bad news, according to the study, is that more than 1.2 million Black adults lack access to financial services, meaning no bank accounts, no access to credit, an unstable income and no financial literacy. Despite these findings, Black adults showed higher financial well-being scores than the general population. The study also showed that Black Americans represent “a fertile and untapped marketplace of resilient and capable consumers ready for better financial alternatives … Therein lies the opportunity for unprecedented growth.”
Average Financial Wellness Score 53.5 53 52.5 52 51.5 51 50.5
49.5 49 48.5
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General Black Population Americans
Men
InsuranceNewsNet Magazine » August 2021
Black Men
Women
Black Women
SOURCE: The American College
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How does the industry increase financial well-being? The report made these recommendations: » Exposure. Share culturally competent education married with financially sound practices. » Stability. Focus on the next goal — wealth creation comes after financial stability. » Empowerment. Change the narrative around what it means to “make it” financially from “making money” to “making your money work for you.” The report showed: » More than 10% of Black men and 14% of Black women reported the lowest levels of access; only 8% of Black men and 7% of Black women experienced the highest tier of access. By comparison, 30% of white men experienced the highest tier of access, and only 3% of white men reported the lowest tier of access. » Notably, financial stress was not a significant predictor of financial well-being for Black women, compared to the overall consumer market, where financial stress strongly predicted financial well-being. Some of the report’s key findings address the following issues: Economic empowerment and equality. Black Americans’ lack of access to financial education, stable incomes and financial products influences their ability to take action to address their financial situations. Black America models financial resilience. Black women are key stakeholders in the financial culture and well-being of Black communities. The
