An astounding 74% of Black Americans plan to forever change how they save and spend due to COVID-19.
A new study by the Lincoln Financial Group provides more evidence of how Black Americans were among those trounced the most by the pandemic. And some 75% are planning to handle their future finances differently. More specifically, many are shifting their financial behaviors when it comes to such matters as saving, investing, getting the best use out of their money.
Black consumers (32%) are most likely to have suffered job loss due to the crisis. That adds to their top financial concerns of not having enough emergency savings (42%) and not being able to cover daily (41%).
The fresh discoveries focused on race and ethnicity came from this Lincoln Financial survey that was compiled from 4,240 U.S. adults. It included feedback from 412 Black Americans or nearly 10% of respondents. The findings disclosed Black consumers (67%) are most likely to report they are reading and learning about financial markets and investing. They also are pondering if they have the right insurance (61%). Observers asset this is a solid foundation to bank on to help form positive financial outcomes.
“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 reality,” stated Eric D. Bailey, founder of Bailey Wealth Advisors in Silver Spring, Maryland. An African American, Bailey is a registered representative of Lincoln Financial Advisors.
“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.”
A separate study showed that most (68%) are still very concerned about their personal financial security and (81%) feel less well off. Yet, more than half (64%) are confident about spending money over the next couple of months and are more (52%) concerned with Covid-19 than an economic downturn (40%). Because of the pandemic’s impact over the last couple of months, respondents plan to make several changes: They include save money/prepare for a rainy day (44%), be better at budgeting (41%), pay off debts (36%), and put more money into longer-term investments (23%). Those findings are based on a survey by Toluna, a tech firm operating in the market research space.
To help overcome financial challenges. Bailey recommends three tips to help Black consumers and all Americans build wealth:
- Focus on education and financial literacy – from a young age. Learning the true value of proper budgeting, creditworthiness, and smart money management early is the foundation for a lifetime of good financial habits.
2. Make longevity planning a priority. Building and sustaining wealth is a process, one in which consumers should match lifelong financial goals to life expectancy.