African-Americans are more optimistic about their financial future over the next year than the general population, but the majority of those responding acknowledge they don’t have a financial game plan and many don’t know where to start, accor
African-Americans are more optimistic about their financial future over the next year than the general population, but the majority of those responding acknowledge they don’t have a financial game plan and many don’t know where to start, according to a recent study.
A new survey of 1,200 participants commissioned by The Smiley Group and Nationwide Insurance shows 58 percent of African-Americans expect their household situation to be better a year from now, compared to only 30 percent of the general population sharing similar optimism.
While African-Americans say they think their financial situation will improve in the next year, most of those surveyed indicated they are not taking deliberate actions to better their financial circumstances:
• Less than half say they are proactive about their financial future
• Three in four say they do not have a written financial plan
• One in three say they don’t know where to start when it comes to personal financial planning
African-Americans are more confident than their general population peers in their ability to make savings and investment decisions (52 percent vs. 43 percent), but are also more likely to indicate they are struggling with credit card debt (38 percent vs. 32 percent).
On saving for college, nearly half of all survey participants with children under 21 said they are very or extremely worried about being able to afford a college education for their children, while only about one in 20 of all survey participants say they actually have a college savings plan. Only three percent say saving for education is the most important goal.
“It’s one thing to be positive, but it’s another to be practical, proactive and prepared to weather this difficult economic climate,” said Tavis Smiley. “This survey reveals the critical need for an honest assessment of our financial status so that we can be sure that we are taking the steps necessary to safeguard the future for ourselves, our families and the next generation.”
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Copyright 2009 Special to the NNPA from the Louisiana Weekly. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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