Black Americans are changing the way the use money.
A new study by the Lincoln Financial Group has shown that Black Americans were among those impacted the most by the pandemic and now they are rethinking their spending habits. Black Americans are looking into the best way to get the most out of their money and saving money is at the top of the list.
“Our goal is to help Black Americans and all consumers understand the importance of saving for retirement and creating generational wealth, as well as educate on how to take those first steps toward making it a reality,” Eric D. Bailey, CFP®, founder of Bailey Wealth Advisors in Silver Spring, Md., said per a press release. He is also a registered representative of Lincoln Financial Advisors.
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He added that “by tapping into online budgeting tools, calculators and other resources, people can make small changes that really add up in the long run. A financial plan doesn’t have to be complicated—I like to think of it as a roadmap to ensure you’re on track to achieving the life you envision for the future.”
According to the study, Black people were 32% more likely to have lost their jobs during the pandemic and 42 % feel they do not have adequate savings. Another shocking revelation is that 41% feel they do not have enough funds for day to day needs.
But Black people are well aware of the setback and are taking action. The research says 74% of Black Americans are making changes in how they spend and save.
“While it’s good news that more Black Americans are feeling optimistic, the research also indicates there is still work to be done,” Bailey said.
“Unfortunately, the wealth gap for African Americans remains significant. In addition, when insurance and retirement solutions fall lower on the priority list due to a crisis like job loss, It then affects long-term financial outcomes for people and their families. For that reason, we are committed to educating the community about the importance of planning for their financial future.”
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But also due to the pandemic 75% are looking to plan their financial future. That is where Bailey’s practice steps in. He said there are three ways Americans can start to build wealth.
-He advises people learn about the bases of money early such as credit cards, the importance of credit usage and budgeting.
– Create a strategy for long term lifetime savings.
-And to meet with a Certified Financial Professionals (CFPs). Financial planners have knowledge, and training that can accommodate one’s personal needs.
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