Why Can't Black Folks Save?

. As Black America closes in on a $1 trillion combined GDP, it's a question on folks' minds. From Reuters: "Yet another survey confirms what we already know: Blacks don’t save as much as their white counterparts. According to Prudential’s new study — the African American Financial Experience — 60 percent of African-Americans have less than $50,000 in company retirement plans and only 23 percent have more than $100,000. They’re also three times more likely to raid their 401(k) or other retirement plans to meet immediate financial needs, the study says."

The article continues: "Prudential’s findings echo research by Ariel Investments, which looks at middle class blacks. (According to Ariel’s July 2010 study, the median assets blacks have retirement plans is about half the amount that whites have accumulated: $56,000 compared to $106,000.) This issue has not gone unnoticed in corporate boardrooms.

Prudential's research shows that only two in 10 black Americans believe that they are on track to meet their planning and savings goals for retirement. African-Americans show a high interest in learning about financial issues through faith-based organizations. Women are driving financial decisions in African-American households. African-Americans are nearly twice as likely to have a dream of starting a small business as those in the general population (35 percent vs. 19 percent), and view starting their own small business as a path to financial freedom. However, more than half of those with an interest in starting a small business say a lack of capital has been the primary hurdle to getting started. Some 78% of black respondents say they feel financial services companies “have not effectively engaged the African-American community.”

Taken From Booker Rising