The “black” spending habit often stems from wanting social acceptance. The socioeconomic and psychological aspects of instant gratification have long plagued the financial sustainability of the black community.
On top of depreciable product spending, African American women spend more money on hair and makeup than any other race. A study conducted by Essence magazine, in conjunction with Vision Critical Group, reported that African American women spend 80 percent more on cosmetics annually and nearly twice as much on skin care products than general market women do annually.
Friday, December 4, 2009
Thursday, December 3, 2009
African American spending Habits.
Why do African-Americans tend to spend their money on some of the most useless s#!+? What I’m calling to attention is black people needing to analyze and scrutinize their spending habits. One major of many components to maintain power as a people is to control both our destiny and collective economic destiny. And a key component to maintain that control is to execute a well organized, thought-out, strategized spending plan.
From Blueprint for Black Power (pp 602-604), which obtained their information from American Demographics (January, 1993) and other sources:
“Blacks spend over 75% more than Whites on boys’ clothing.”
“…money spent by Black households on boys’ clothing alone amounts to well above $1 billion.”
“African Americans are estimated to spend more than $500 million per year on McDonald’s fast food.”
“African Americans consume 32 percent of all malt liquor products and 20 percent of the scotch whiskey market”
“African American males between the ages of 13 and 24, who are less than 3 percent of total U.S. population account for 10 percent of the $12 billion athletic shoe market, purchasing more than 1 out of 5 pairs of shoes made by Nike;”
“African-American females, who equal approximately 6 percent of the total U.S population, purchase 15 percent of the $4 billion cosmetics industry, or $600 million and spend 26 percent more on perfume than any other group of females.”
Now all of these things are not necessarily silly, but many attract a point of interest, provoke deep insight and pique a source of embarrassment.
You can see many silly spending habits of our people just by strolling through some of our heavily populated African American areas. You’ll see things like 20-inch chrome wheels on a 1996 Ford Taurus. Or you’ll see two vehicles owned by one man, a 2009 Pontiac G8 and a 2005 Jaguar who lives in an apartment in the hood. Or you’ll see heavy consumption of alcohol, inside and outside of the clubs. You’ll see a guy who owns 20 New Era caps and 20 pairs of Air Force ones with no plan for the future, but to buy some more hats and shoes and rap about it. You’ll spot people paying $20-$50 dollars for club admission or $500-$1000 to sit at a table in someone’s building to drink their overpriced liquor. And one of the most ignominious things you’ll see, are people making it rain (and glorifying it)! [Excuse] “I’m giving back to the community.” [Response] “Why don’t you go start a school or something?!” The list goes on…
What this type of comportment reflects is a deep mental programming. Something in our environment is influencing us that these items are in fact our aims and goals. Something is affirming this type of behavior as normal and perfectly acceptable. But the first question to ask is, “Who benefits from this pathology?” and secondly, “Where does this message come from?”
Another important question to consider is, “Where is this money going?” Money is energy in motion. It allows you to direct your energy towards a particular purpose. If Blacks remain in dilapidated areas, and are held in a position of suffering and lack compared to other members of this nation, then we must question ourselves, why are we ignoring these ills and squandering our opportunity for self-improvement by misusing our monies?
A general rule of thumb is: wealth resides in the hands of a European elite. When we attend work, we exchange labor for their papers (money). When we make foolish decisions with our money, our money is readily handed back over to the very people that we work for, dominate us and dictate our lives. We repeat the cycle conceiving the Rat Race. This is by design.
Another question Dr. Amos exhorts us to ask is, “What do we get in return for such loyal support of non-Black businesses?” In his book he substantiates information that reveals, what we gain in return is so marginal, it’s an affront. Dr. Amos identifies another phenomenon that hinders our community from effectively supporting ourselves. Black businesses are not only avoided by non-Blacks, but even Blacks do not support each other’s businesses. This exposes a deep level of mental trauma. But, both of these issues are things that need to be addressed by an organized body of African Americans before any effective countermeasures can be implemented.
The spending pattern and desires reflected by African Americans are typically unacceptable and demonstrate backwardness. We have a duty to think of creative, strategic ways to utilize our money—to recycle it within the Black community. After we finish thinking, we need to (actually) perform the stratagem. When that becomes a reality, then we will have (economic) power to dictate our reality, foster into creation change that significantly benefits our people and continues to benefit our people thereafter.
Here's an example of living Hoodrich:
http://righteousminds.wordpress.com/2009/06/16/black-spending-habits/
From Blueprint for Black Power (pp 602-604), which obtained their information from American Demographics (January, 1993) and other sources:
“Blacks spend over 75% more than Whites on boys’ clothing.”
“…money spent by Black households on boys’ clothing alone amounts to well above $1 billion.”
“African Americans are estimated to spend more than $500 million per year on McDonald’s fast food.”
“African Americans consume 32 percent of all malt liquor products and 20 percent of the scotch whiskey market”
“African American males between the ages of 13 and 24, who are less than 3 percent of total U.S. population account for 10 percent of the $12 billion athletic shoe market, purchasing more than 1 out of 5 pairs of shoes made by Nike;”
“African-American females, who equal approximately 6 percent of the total U.S population, purchase 15 percent of the $4 billion cosmetics industry, or $600 million and spend 26 percent more on perfume than any other group of females.”
Now all of these things are not necessarily silly, but many attract a point of interest, provoke deep insight and pique a source of embarrassment.
You can see many silly spending habits of our people just by strolling through some of our heavily populated African American areas. You’ll see things like 20-inch chrome wheels on a 1996 Ford Taurus. Or you’ll see two vehicles owned by one man, a 2009 Pontiac G8 and a 2005 Jaguar who lives in an apartment in the hood. Or you’ll see heavy consumption of alcohol, inside and outside of the clubs. You’ll see a guy who owns 20 New Era caps and 20 pairs of Air Force ones with no plan for the future, but to buy some more hats and shoes and rap about it. You’ll spot people paying $20-$50 dollars for club admission or $500-$1000 to sit at a table in someone’s building to drink their overpriced liquor. And one of the most ignominious things you’ll see, are people making it rain (and glorifying it)! [Excuse] “I’m giving back to the community.” [Response] “Why don’t you go start a school or something?!” The list goes on…
What this type of comportment reflects is a deep mental programming. Something in our environment is influencing us that these items are in fact our aims and goals. Something is affirming this type of behavior as normal and perfectly acceptable. But the first question to ask is, “Who benefits from this pathology?” and secondly, “Where does this message come from?”
Another important question to consider is, “Where is this money going?” Money is energy in motion. It allows you to direct your energy towards a particular purpose. If Blacks remain in dilapidated areas, and are held in a position of suffering and lack compared to other members of this nation, then we must question ourselves, why are we ignoring these ills and squandering our opportunity for self-improvement by misusing our monies?
A general rule of thumb is: wealth resides in the hands of a European elite. When we attend work, we exchange labor for their papers (money). When we make foolish decisions with our money, our money is readily handed back over to the very people that we work for, dominate us and dictate our lives. We repeat the cycle conceiving the Rat Race. This is by design.
Another question Dr. Amos exhorts us to ask is, “What do we get in return for such loyal support of non-Black businesses?” In his book he substantiates information that reveals, what we gain in return is so marginal, it’s an affront. Dr. Amos identifies another phenomenon that hinders our community from effectively supporting ourselves. Black businesses are not only avoided by non-Blacks, but even Blacks do not support each other’s businesses. This exposes a deep level of mental trauma. But, both of these issues are things that need to be addressed by an organized body of African Americans before any effective countermeasures can be implemented.
The spending pattern and desires reflected by African Americans are typically unacceptable and demonstrate backwardness. We have a duty to think of creative, strategic ways to utilize our money—to recycle it within the Black community. After we finish thinking, we need to (actually) perform the stratagem. When that becomes a reality, then we will have (economic) power to dictate our reality, foster into creation change that significantly benefits our people and continues to benefit our people thereafter.
Here's an example of living Hoodrich:
http://righteousminds.wordpress.com/2009/06/16/black-spending-habits/
How could the spending/Consuming problem be addressed in the African American Community
Change doesn't doesnt happen overnite, but taking little steps such as having disciplined principles about spending can help anormously.
6 Steps that could help address African American spending:
1)Finacial Advisement- ING Banking, a financial institution that offers financial services to clients of all classes worldwide, offers tips on how blacks can get out of debt.
2)Resisting impulse purchases. As much as 40 percent of black women surveyed said they shop to cheer themselves up. Financial experts suggest "being more mindful and thinking twice before making a discretionary spend can make a big difference in one's wallet over time."
3) Use credit cards sparingly. Spending money you don't have in hand is never wise, regardless of economic conditions. So getting into the habit of only using credit cards for purchases you've carefully considered is key note of using credit cards
4)Saving for the Future- Using an automatic savings plan. Although financially supporting family members can make saving difficult, enrolling in an automated savings account is a seamless way to be sure you're socking something away. If one's employer offers a retirement savings plan, that's probably the best place to start.
5)Finacial Education and Awareness is a plus, African Americans need to invest more in books than CD's.
6)Join an investment club or class. Often, people are uncomfortable talking to finance professionals, but an investing club or class is a great way to break the ice. Check out investing clubs in your community that are compatible with your level of experience and investment knowledge.
6 Steps that could help address African American spending:
1)Finacial Advisement- ING Banking, a financial institution that offers financial services to clients of all classes worldwide, offers tips on how blacks can get out of debt.
2)Resisting impulse purchases. As much as 40 percent of black women surveyed said they shop to cheer themselves up. Financial experts suggest "being more mindful and thinking twice before making a discretionary spend can make a big difference in one's wallet over time."
3) Use credit cards sparingly. Spending money you don't have in hand is never wise, regardless of economic conditions. So getting into the habit of only using credit cards for purchases you've carefully considered is key note of using credit cards
4)Saving for the Future- Using an automatic savings plan. Although financially supporting family members can make saving difficult, enrolling in an automated savings account is a seamless way to be sure you're socking something away. If one's employer offers a retirement savings plan, that's probably the best place to start.
5)Finacial Education and Awareness is a plus, African Americans need to invest more in books than CD's.
6)Join an investment club or class. Often, people are uncomfortable talking to finance professionals, but an investing club or class is a great way to break the ice. Check out investing clubs in your community that are compatible with your level of experience and investment knowledge.
African Americans still have gaps to close in Homeownership and Saving
Certainly, higher rates of unemployment, income disparity and credit discrimination are financial impediments to the economic vitality of blacks, but so are their consuming tastes.
According to the National Urban League's "State of Black America 2004" report found that fewer than 50% of black families owned their homes compared with more than 70% of whites.
According to the Ariel Mutual Funds/Charles Schwab 2005 Black Investor Survey found that when comparing households where blacks and whites had roughly the same household incomes, whites saved nearly 20% more each month for retirement, and 30% of African-Americans earning $100,000 a year had less than $5,000 in retirement savings. While 79% of whites invest in the stock market, only 61% of African-Americans do.
According to the National Urban League's "State of Black America 2004" report found that fewer than 50% of black families owned their homes compared with more than 70% of whites.
According to the Ariel Mutual Funds/Charles Schwab 2005 Black Investor Survey found that when comparing households where blacks and whites had roughly the same household incomes, whites saved nearly 20% more each month for retirement, and 30% of African-Americans earning $100,000 a year had less than $5,000 in retirement savings. While 79% of whites invest in the stock market, only 61% of African-Americans do.
Its a state of Emergency African Americans are cutting back on books
The only thing African Americans seem to cut back on is books. According to the state of black American report, total purchases of books went from a high of $396 million in 2000 to mere $289 million in 2005.
This behavior could be detrimental to the future generation of young African Americans, living them illiterate not knowing how to read.
Studies have shown that instant gratification and social acceptance is to blame.
This behavior could be detrimental to the future generation of young African Americans, living them illiterate not knowing how to read.
Studies have shown that instant gratification and social acceptance is to blame.
WHAT ARE THE CONSEQUENCES OF BUYING POWER FOR AFRICAN AMERICANS
An increase in employment for African Americans from 1996-2007 boosted african american spending. Access to credit and credit cards has also contributed to the buying power of African Americans. The finacial times mentioned an average american adult carried over 8 credit cards with african americans carrying at least 6 credit cards on an average.
According to Target market report a report that tracks black consuming spending mentioned that blacks spend a significant amount of their income on depreciable products, in 2002 blacks spent over $22.9 billion dollars on clothes, $3.2 billion on electronincs and $11.6 billion on furniture that was got off credit.
Among other favorite purchases for African Americans were cars, rims and liquor. Blacks make up 12% of the U.S population according to the target market report blacks were the biggest consumers of scotch at 30% in the country. Ford motors the maker of Lincoln commissioned Sean P Diddy combs to design a Limited Edition Lincoln Navigator which was accesorised with 24 in chrome rims, four 16 inch subwoofers, 6 splasma screen TVs, 2 DVD players and a Sony Playstation. That deal fenched ford Motors $46.7 billion dollars on the cars purchased by blacks.
According to Target market report a report that tracks black consuming spending mentioned that blacks spend a significant amount of their income on depreciable products, in 2002 blacks spent over $22.9 billion dollars on clothes, $3.2 billion on electronincs and $11.6 billion on furniture that was got off credit.
Among other favorite purchases for African Americans were cars, rims and liquor. Blacks make up 12% of the U.S population according to the target market report blacks were the biggest consumers of scotch at 30% in the country. Ford motors the maker of Lincoln commissioned Sean P Diddy combs to design a Limited Edition Lincoln Navigator which was accesorised with 24 in chrome rims, four 16 inch subwoofers, 6 splasma screen TVs, 2 DVD players and a Sony Playstation. That deal fenched ford Motors $46.7 billion dollars on the cars purchased by blacks.
What are the Trends in African American spending/ consuming
there is positive trend of why african american spending has increased in the past decade, there has been an increase in African Americans being affluent and educated. statistics show a new wave of you young successful entreprenuers is growing especially among the educated and affluent http://www.magazine.org/content/files/market_profile_black.pdf
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