AfAm Women in their Own Economic Bubble
Good economy, bad economy black women buy what they want.
That’s what a new survey says that examines the spending habits of African American (AfAm) women. The survey was done by ING and discovered that 68 percent of black women say they buy what they want whether times are good or bad. 41% feel guilty about how much they spend on expensive name brands.
1,000 Black professional women and 454 non-professional Black women participated in the survey. Less than half of the women admitted they shop to cheer themselves up and make impulsive purchases.
“For some Black women, excessive spending makes the road to long-term financial security even longer,” said Rhonda Mims, president of the ING Foundation and senior vice president of ING’s Office of Corporate Citizenship & Responsibility. . “To an extraordinary degree, Black women consider themselves trendsetters and centers of influence. Opinion-leading has its price.”
Compared to 77% of all other women, only 66% of AfAm women own a retirement account. Whereas 52% of other women have stocks and bonds only 28% of AfAm women do. Mims describes AfAm women spending habits as the “financial perfect storm”.
African American women also spend selflessly, giving a lot of money to their families and their communities.
More than half of the Black women surveyed say they’ve lent $500 or more to a friend or to family in the last year; one-third say they’ve loaned upwards of $1,000.
“Black women’s sense of obligation to community and family is both extraordinary and commendable,” Mims says. “But when you are pulled in so many directions financially, something or someone has to pay the price. For Black women, it appears their financial well-being suffers.”