The Struggle Has Been Real: Data Shows Blacks Cope With Inflation Better Than Most Americans
Money

Analysis: Blacks Coping With Inflation Better Than Most Americans; Boosting Their Holiday Spending Plans This Year

(Image: iStock / M_a_y_a)

When economic downturns occur, Black Americans often are hit more severely financially and face a tougher time rebounding than others.

However, new data shows that while inflation is stinging everyone, Blacks are dealing with it better than most and showing greater optimism.

Rising prices and other elements have forced people to pay more for gas and groceries, while 34% plan to spend smaller amounts on holiday shopping this year than they did last year. The information is among figures supplied by Matt Brannon, author of a new survey. All told, 1,000 Americans were questioned in the Clever Real Estate survey, including more than 10% of Black respondents.

Brannon discovered some surprising findings. For instance, Black Americans (43%) are 8% more inclined to report they are doing better than they were last year versus average Americans (35%). Blacks (55%) are 7% more likely than average Americans (48%) to say they met their financial goals in 2022. Black Americans, 58%, are less likely to be worried about their finances than Americans overall (50%).

Brannon noted his firm’s analysis on inflation showed 52% of Black Americans reported their household income rose in 2022 versus only 37% for all Americans. He also pointed out Blacks might be more used to dealing with difficult financial conditions than other Americans.

“It’s possible that dealing with those hardships may have led to many Black Americans getting good at things like budgeting and cost-cutting.”

“So, some Black Americans might have more experience dealing with financial difficulties than other groups of Americans who haven’t had to face the same types of challenges.”

He added, “While inflation and the current economic conditions are making life hard on Americans of all races, Black Americans are making the best of a bad situation. Overall, they’re making smart financial decisions and those decisions are paying off.”

Further, Brannon provided tips to help people be more thrifty while holiday shopping:

  • Setting a firm budget before you go shopping will make you more cost-conscious and less likely to spend recklessly.
  •  When buying items for yourself, wait until after Christmas. Certain goods usually go on sale right after the holidays, especially items like fitness products, electronics, holiday decorations, and winter clothing.
  • If you are among the 46% of Americans in credit card debt, consider using cash or a debit card to pay for your holiday shopping. He noted psychological research shows people are more likely to overspend when they use a credit card instead of cash.

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