Black Americans, couple, finances, money

A Third Of Black Americans Keep Money Secrets From Partners, Coming As Overspending Grows

Using cash instead of debit and credit cards and buying store brands can help people struggling with overspending.

 Some 30% of Black Americans keep financial secrets from their partners, barely higher than 28% of all Americans.

Almost 60% of Blacks have shared tears over their spending habits. That figure is much greater than the 45% of Americans who do that entirely.

These discoveries are from Nick Pisano, author of  2024 American Spending Habits: Nearly 75% Have an Overspending Problem. Pisano shared data on Americans’ financial patterns with BLACK ENTERPRISE. The discoveries are linked to a survey of nearly 1,100  American adults by Clever Real Estate in February 2024.

Hiding money issues can truly be annoying and problematic. In fact, this report reveals that they only follow incompatibility and infidelity as reasons for divorces. Observers contend that conflicts may occur for several reasons, including partners having different feelings about spending money. Pisano pointed out that men (74%) are typically more satisfied than women (52%) with their financial state now.

“It also seems clear how crucial it is for those in relationships to communicate honestly and regularly about their finances and spending,” Pisano shared. “While it might be easier to avoid tough conversations with a partner, this is the kind of behavior that sets big spenders up for serious financial and personal issues down the line.”

This site and one here offer tips on how to deal with money concerns in relationships.

Also, Pisano’s analysis showed that Blacks (33%) were pretty in tandem with those overall (31%) on reckless expenses that still haunt them and making purchases they soon regret, at 76% versus 78%. Both groups mirrored each other on who wouldn’t save an unexpected $10,000 windfall, tallying 39% of Black Americans and 40% for all.

Other intriguing revelations surfaced. Some 35% of Black Americans are afraid to check their finances as they will realize how much they’re spending. And 46% know their purchases are reckless but still made them. Around 80% of Blacks have or would consider getting a second job for extra spending money, compared with 72% overall.

The uplifting news is that there are multiple actions all Americans can take to help combat overspending. Pisano says a popular one is using cash or debit cards instead of credit cards. Another is avoiding name brands, buying store brands, and spending less time with people who enable reckless spending.

“Simply keeping track of where their money is going can make a big difference to many people, as 1 in 5 Black Americans (20%) don’t track their spending at all, close to the 18% of all Americans who make this mistake.”

Furthermore, Pisano says it is vital to make a budget and follow it. He shared many personal finance experts recommend splitting 50% of your income for needs, 30% for wants, and 20% for savings and investment. However, he says, 66% of those surveyed spent income on needs and non-mortgage debt repayment, leaving far less for other categories.