Blacks Spending Habits in America
Tuesday, August 5th, 2008
Next time you see that ‘player of the year’ flawsin’ in that 2005
Chrysler 300 sittin’ on 23’s while he’s pulling it into a parking stall
of a rented apartment hand him this article.
USA Today article on Black Spending Habits:
These are tough economic times, especially for African-Americans, for
whom the unemployment rate is more than 10%. Alarmingly, rather than
belt-tightening, the response has been to spend more. In many poor
neighborhoods, one is likely to notice satellite dishes and expensive
new cars.
According to Target Market, a company that tracks black consumer
spending, blacks spends a significant amount of their income on
depreciable products.
In 2002, the year the economy nose-dived; we spent $22.9 billion
($22,900,000,000.00) on clothes, $3.2 billion ($3,000,000,000.00) on
electronics and $11.6 billion ($11,000,000,000.00) on furniture to put
into homes that, in many cases, were rented.
Among our favorite purchases are cars and liquor. Blacks make up only
12% of the U.S. population yet account for 30% of the country’s Scotch
consumption. Detroit , which is 80% black, is the world’s No. 1 market
for Cognac (Pass The Co———).
So impressed was Lincoln with the $46.7 billion ($46,000,000,000) that
blacks spent on cars that the automaker commissioned Sean ‘P Diddy’
Combs, the entertainment and fashion mogul, to design a limited-edition
Navigator complete with six plasma screens, three DVD players and a Sony
PlayStation2.
The only area where blacks seem to be cutting back on spending is books;
total purchases have gone from a high of $356 million in 2000 to $303
mill! ion in 2002. This short-sighted behavior, motivated by a desire
for instant gratification and social acceptance, comes at the expense of
our future.
The National Urban League’s ‘State of Black America 2004′ report found
that fewer than 50% of black families owned their homes compared with
more than 70% of whites.
According to published reports, the Ariel Mutual Funds/Charles Schwab
2003 Black Investor Survey found that when comparing households where
blacks and whites had roughly the same household incomes, whites saved
nearly 20% more each month for retirement, and 30% of African-Americans
earning $100,000 a year had less than $5,000 in retirement savings.
While 79% of whites invest in the stock market, only 61% of
African-Americans do. Certainly, higher rates of unemployment, income
disparity and credit discrimination are financial impediments to the
economic vitality of blacks, but so are our consumer tastes.
By finding the courage to change our spending habits, we might be
surprised at how far the $631! billion($631,000,000,000.00) we now earn
might take us.
We all send thousands of jokes through e-mail without a second thought,
but when it comes to sending messages regarding life-affirming choices,
people think twice about sharing. So please pass this on.
Knowledge is POWER! Reverse the trend.
