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.
Thursday, December 3, 2009
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
Tuesday, December 1, 2009
What Role do African American Sports stars and Rappers play in African American spending Psychology
As many have seen young african american rappers and sports stars have tainted a picture of spending to another level, the phrase "making it rain" has caused young African Americans to think it's cool to throw away thousands of dollars away in strip clubs.
Here's a video of Jermaine Dupree, Nelly and Pac Man Jones demonstrating the ignorance of spending http://www.youtube.com/watch?v=_fkWgycqC0o
Here's a video of lilwayne ft Fat Joe demonstrating how to "to make it rain" throw massive amounts of money at will http://www.youtube.com/watch?v=UQPM2H-LA-M
Here's a video of Jermaine Dupree, Nelly and Pac Man Jones demonstrating the ignorance of spending http://www.youtube.com/watch?v=_fkWgycqC0o
Here's a video of lilwayne ft Fat Joe demonstrating how to "to make it rain" throw massive amounts of money at will http://www.youtube.com/watch?v=UQPM2H-LA-M
The Media outlets Targeting African American consuming
Media outlets such as BET are the biggest influence on African American spending.
Cable t.v network such as BET and t.v one gross anually about $593 million dollars in advertisement sales
Cable t.v network such as BET and t.v one gross anually about $593 million dollars in advertisement sales
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