Survey Finds Disconnect Between Beliefs and Financial Planning for Blacks - Black Enterprise
Black Enterprise Magazine January-March 2019 Issue

Page: 1 2



Released today, the Nationwide Insurance and Tavis Smiley Consumer Survey identified disturbing trends behind what blacks believe and how they react to financial planning and economic empowerment.

“What we ultimately find is that there is a disconnect between what people are thinking, what they believe, and what they are doing,” Smiley says.

According to the survey of 1,200 participants (600 black and 600 from the general population), blacks aren’t dealing realistically with their financial hardships. On one hand the survey found that 58% of blacks are optimistic that their financial situation will be better a year from now, but fewer than one in four have a written financial plan, nearly one in three don’t know where to start building a plan, and fewer than half are proactive about planning their financial future.

Smiley, host of a self-titled PBS talk show and public radio show, in a partnership with Nationwide, has been traveling to black communities throughout the country over the past year giving speeches about financial literacy. The evolution of that journey was the inspiration for the survey.

“The survey by itself can’t change the world, but we believe that the activities that we are engaged in with Tavis, as well as other activities, can help change the world,” said Paul Ballew, senior vice president of customer insights and analytics for Nationwide Insurance. Ballew suggests that teaching financial literacy to children at a young age is one way to change courses to help the community as a whole understand the importance of saving and investing.

The study found that compared with the general population (39%), African Americans (45%) admitted more frequently to taking some type of action to avoid conversations about finances, including screening calls, lying, cutting off a relationship, and skipping meals.

“That is the ostrich syndrome — putting your head in the sand. We are not going to survive these difficult economic times if we are not going to be realistic and if we try to ignore these harsh realities,” Smiley says. “People are absolutely worried about being able to afford college for their kids. But only one in 20 has a college savings plan. Only 3% say that education is their most important financial goal.”

Smiley also recently released Accountable: Making America As Good As Its Promise, the third part of The Covenant series, which includes two critically acclaimed books, The Covenant with Black America, and The Covenant in Action.

Accountable issues a call to action to elected officials, community leaders, corporations and American citizens.

On Feb. 28, Smiley will convene his 10th annual State of the Black Union (SOBU) Conference in Los Angeles, which will also be aired nationally at 8 a.m. on C-SPAN. The SOBU is a one-day symposium that will feature panels moderated by Smiley and comprised of prominent political, educational, business, grassroots, and entertainment leaders. The free event will articulate the African American agenda for President Barack Obama and target what blacks

Page: 1 2

Join the Conversation

Marcia Wade Talbert

Marcia is a multimedia content producer focusing on technology at Black Enterprise Magazine. In this capacity she writes and assigns stories to educate readers about social media; digital integration; gadgets, apps, and software for business and professional development; minority tech startups; and careers in STEM (Science, Technology, Engineering, and Mathematics). In 2012, she received two Salute to Excellence Awards from the National Association of Black Journalists and was recognized by Blacks in Technology (BiT) as one of the Top 10 Black achievers in the tech arena for 2011 at SXSW in Austin, Texas. She has spoken about technology on panels for New York Social Media Week, at The 2012 Rainbow/PUSH Wall Street Summit, as well as at Black Enterprise’s Entrepreneurs Conference and Women of Power Summit. In 2011, chose her as one of 28 People of Color Impacting the Social Web, and through crowdsourcing she was listed as one of BlackWeb2.0's/HP's 50 Most Notable African American Tastemakers in Social Media and Technology for 2010. Since taking on the role of Tech editor in September 2010, she has conceived and produced five cover stories on Technology and/or STEM and countless articles, videos, and slideshows online. Before joining as an interactive general assignment reporter in 2008, she freelanced with Black Enterprise beginning in 2003 while working as the technical editor at Prepared Foods magazine. There she further honed her writing skills and became an authority on food ingredients, including ingredients used in food fortification and enrichment. Meanwhile, her freelancing with Black Enterprise and helped her stay current on issues pertaining to the financial and business welfare of African Americans. As a general reporter for Black Enterprise she attended and reported on the Democratic and Republican National Conventions, where she interviewed Valerie Jarrett, senior advisor and assistant to President Barack Obama and U.S. Attorney General Eric Holder. Marcia has a Bachelor of Science degree in Agriculture with an emphasis in food science from the University of Minnesota, and a Master of Science degree in journalism from Roosevelt University in Chicago. En route to her secondary degree, she served as the editor-in-chief of the Roosevelt University Torch, a weekly, student-run newspaper. An avid photographer and videographer, Marcia is one of several employees at BLACK ENTERPRISE who interned for the publishing company as a college student. She lives in New Jersey with her husband, a food scientist; her seventeen-month-old daughter; and “The Cat”, but still considers Chicago home.