Financial Literacy In The Black Community

African Americans contribute significantly to the US economy but lag behind financially compared to white counterparts due to a lack of financial literacy. 

Personal Finance Index (P-Fin Index) Study

One of the latest studies on the Personal Finance Index (P-Fin Index) conducted by GFLEC and TIAA institute provides new insights on Black financial literacy.

Basis of P-Fin Index  study 

It's based on Earning,  Consuming, Insuring, Saving, Investing, Borrowing, Managing Debt and Comprehending Risk and Uncertainty.

Key Insights of the  Study

– Only 38% of the answers were correct by African Americans compared to 55% of white people. – Their best score was in borrowing and managing debt.

Key Insights of the  Study

– The lowest score was in comprehending risk and uncertainty, insuring, investing, and go-to information source. – Insuring and understanding is a troubling part of financial literacy

Need for More African American Personal Finance Professionals 

The role of black financial advisors dramatically impacts financial literacy in the United States. Still, the employment ratio of Black Advisors is only 2% in the United States.  It’s crazy! 

Reduce The Wealth Gap  

Many surveys conducted in the United States reveal that there is a significant racial wealth gap between white Americans and African-Americans. For example, if a white family holds assets of $630,000, the average African American family holds $98,000. 

TIAA (Teachers Insurance And Annuity Association ) 

Stephanie Rose, the head of TIAA Institute, said in a press report that having no literacy gap between White and Black People is very important to highlight the challenges and issues to make a better economy of our country.