While many African American men and women have demonstrated a special talent for managing households and family budgets with skill and prudence, only recently has that competence for money management been recognized in formal studies.
Prudential unveiled the results of its 2015-2016 study, “The African American Financial Experience,” which examines the financial attitudes, priorities and progress of black consumers in the current economy. Presented by leading financial expert Delvin Joyce, at the National Association of Black Journalist Conference in Minneapolis, the findings paint a positive picture of the state of African Americans and their financial affairs. Joyce, managing director of Prudential’s South Florida Financial Group, is optimistic about the study’s findings.
“I’m super excited to be here today and talk about the findings and insights of the newest release of ‘The African American Financial Experience.’ One of the key findings is that the majority of African Americans see continued improvement of their financial situations over time,” said Joyce, adding “African American [adults] also anticipated continued improvement for the next generation of their families.”
The Prudential study indicates that compared to the general population, African Americans are more likely to say their financial situations have improved over the last five years. A majority of respondents also indicated that their finances were better than their parents at the same point in their lives.’ The African American Financial Experience’ research also indicated that 58 percent of those surveyed expected their children to fare better in their lives.
With economic confidence among blacks growing, the focus is on ensuring that black Americans are prepared to protect their finances as well as grow wealth. But research shows where African Americans were less successful financially is in the area of transferring wealth and saving and investing for their children’s education.
“The good news is that employer sponsored plans, like 401Ks are readily available,” said Joyce, cautioning that black workers don’t participate at the same rate as the general population. “Only 74 percent of those surveyed participated in employer sponsored plans, compared to 85 percent of the general population.
The 2015 ‘African American Financial Experience’ — for the first time in the survey’s history — examined the financial state of two distinct sub-sets of the African American population: caregivers and veterans.
“The big difference between African Americans and the general population is that [black people] who are caregivers tend to see their caregiving responsibilities as a long-term commitment … saying they expected their responsibility to provide care would last upward of 10 years,” Joyce said.
Veterans indicated that they were more financially prepared and confident about making financial decisions after detaching from the military.
To read the study’s findings in its entirety visit.prudential.com/africanamericans