Survey: African-Americans more optimistic than whites about financial status improving

(March 29, 2010) (March 29, 2010) A survey commissioned by Nationwide Insurance and The Tavis Smiley Group shows 58 percent of African Americans expect their financial situation to be better a year from now, compared to only 30 percent of the general population. However, most black households say they don't have a financial game plan and many don't know where to start.

According to the online survey of 1,200 participants, African Americans have made more positive changes in the past year than the general population as a result of the economy, including creating a household budget (37 percent to 31 percent), focusing on paying off credit cards or other debt (49 percent to 42 percent) and starting or increasing contributions to their 401(k) (8 percent to 5 percent).

Among the other highlights in the survey:

- African Americans are more confident than the general population in their ability to make savings and investment decisions (52 percent vs. 43 percent), but are also more likely to indicate they are struggling with credit card debt (38 percent vs. 32 percent).

- Fewer than one in four have a written financial plan, nearly one in three don't know where to start building a plan, and fewer than half are proactive about planning their financial future.

- African Americans with children under 21 say they are very or extremely worried about being able to afford a college education for their children, but only one in 20 say they actually have a college savings plan. Only 3 percent say saving for education is their most important financial goal.

To continue addressing the need for greater financial literacy among African-American households, Tavis Smiley and Nationwide Insurance will again partner on the On Your Side tour. The event features speakers and workshops on various financial planning areas.

"This marks the third year of our partnership and I appreciate Nationwide's ongoing commitment to holding these financial empowerment sessions. As the world continues to recover from the recession, Black America has the highest unemployment rates, was heavily impacted by the housing crisis and was hit hard by the credit crisis. These sessions are as timely today as they were when we started the tour."

"As America continues to see the long-term impact of the Great Recession, our safety nets are slowly diminishing and consumers are becoming more aware that fiscal accountability and responsibility is up to them," said Jim Lyski, Nationwide's executive vice president of marketing. "Consumers are seeking financial information and tools to help them plan for today and prepare for tomorrow. We view our On Your Side tours as a way to help people help themselves and make a difference in the communities we serve."

The dates for the 2010 Tavis Smiley On Your Side Tour are as follows: June 19 in Cincinnati, OH; September 25 in Columbia, S.C.; October 9 in Pittsburgh, PA; October 30 in Greensboro, N.C.; November 6 in Baltimore, MD

The national online survey was conducted in December 2009 by The Blackstone Group, a certified minority-owned, full-service custom marketing research and consulting firm. A Web panel was used to collect national data for 1,202 respondents split into two sample groups. General Population, ages 18+ (n=601) and African American, ages 18+ (n=601). The survey has a margin of error of +/- 3.4 percent.

Click here for the national survey fact sheet (PDF)

Click here for a copy of the entire survey (PDF)


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