How is Black America spending their money? What percentage of Black Americans are saving and investing, and how can businesses grow their business toward the Black market?

Black People Speak took a survey of Black spending and saving habits to see which direction Black America's money goes. We polled 166 Blacks on economic habits and the results are below.

Questions and Results

Choose from among the four types of wage earning methods below that apply to you.

Work 1 full time job Work 2 or more jobs Own business and 1 job Own business and 2 or more jobs Own business full time Other

51.43% 8.57% 8.57% 2.86% 2.86% 25.71%

From the above results, we see that the majority of Blacks 51% work full time on a job; 25% reporting they earn income in other ways. Eight percent report maintaining a part time business as well as another 8% reporting they work more than 2 jobs. This reflects Black America's dependency on the workforce as opposed to their desire and opportunities to own their own business. Even if they have a business, most work 8 hours along side owning that business.

Pertaining to your saving habits, on average how much do you normally save per month?

Up to $50 Between $50-100 Between $100-500 $500 plus It is hard for me to save money I do not save money

7.69% 17.95% 28.21% 10.26% 28.21% 7.69%

When asked about their saving habits, most Blacks 28% save between $100-200 a month while an equal amount 28% claim to not have enough money to save, revealing a paycheck-to-paycheck lifestyle. However, 17% say they save between $50-100 while a small percentage can only save up to $50 a month.

How much in total debt would you say you are in, if any? Not including car notes or mortgages/rent.

No debt Under $10,000 $10,000-$20,000 $20,000-50,000 $50,000 plus

15.79% 42.11% 18.42% 10.53% 13.16%

Surprisingly, more Blacks admit to having debt below the $10,000 mark while another small percentage say they owe at least $10,000-20,000 with 23% over 20,000, and 15% owing no debt at all. Can we say this is a good thing or a bad thing? Good and bad because if less Blacks owe less money out, more of what is earned can remain in the pockets yet it also means that Blacks may have a lack of credit, which can withhold possible wealth for them in the future.

Of all your income, choose the 3 most consuming sources, besides mortgage/rent. What do you use or spend most on.

Car note Bills Groceries Entertainment (CDs DVDs, Books) Eating out Clothes Jewelry Electronics Vacations Other

13.13% 35.35% 24.24% 2.02% 5.05% 3.03% 0.00% 4.04% 0.00% 13.13%

From the results above, it seems that car notes, groceries, and bills (71% total) consume the majority of Black income, which combined, is double that of any leisure spending. This also, can be a good thing or a bad thing. Good because if Blacks are not spending on material goods but rather paying their bills, they can maintain a standard of basic living. On the other hand, Blacks may not have enough disposable income for leisurely activities such as make major purchases or take vacations.

How much money would you say you loan out in a given month to family or friends.

Up to $50 $50-200 $200 plus I quit loaning out money I do not have enough to loan

15.79% 21.05% 13.16% 23.68% 26.32%

Pertaining to lending money to family and friends, most Blacks 23% who simply quit loaning money and 26% who claim they do not have enough to loan, comprise the majority of Blacks who basically do not have the money to lend out. However, 21% say they do lend at least $50-200 a month while some lend more 13% and other less 15%. We are a generous people if we have the means.

Do you have money invested in any markets?

Yes, I do No, do not No answer

50.00% 36.84% 13.16%

More Blacks have money invested in the markets than do not. As opposed to saving or lending, 50% of Blacks have secured their money away in stocks and or bonds while 36% say they have no investments at all. This means more Blacks would rather invest what disposable income they have instead of spend it or lend it, while some, a comparable amount who do not have high disposable income to either lend, save or invest.

To the best of your knowledge, how would you rate your credit?

Excellent Good enough Poor Dont even ask

15.38% 38.46% 30.77% 15.38%

In a tight and surprising result, more than half of Blacks 53% are confident about their credit rating as opposed to 45% of Blacks who know their credit rating is not that good. This says a lot about the divide of Black America and how boosting the credit rating of Blacks who could use it would indeed help Blacks pertaining to wealth and future security.

Conclusion
Black America have yet to obtain financial security as they should while depending on the employment sector, but have not gained enough encouragement or support to branch off on their own for business. Being paid a living wage has shown to be just that, enough to live on as living expenses consume most of Black dollars.

Total debt does not seem to be a major problem for Black finances, yet saving money is harder and lending is not that popular. Because Blacks seem not to be into saving much because of low disposable income levels, it seems more have decided that investing is a better bet than saving and because good credit is more difficult to achieve with low income.

The financial future of Black America would benefit from investment and more likely into Black-owned businesses. To draw Blacks away from the workforce, which seems to only keep most financially above water, and bring them into their own businesses and teaching them to invest in those businesses, could be a turning point in the advancement of Black wealth.

© Feb. 2008 Black People Speak