financial literacy
A study published recently by the TIAA Institute and the Global Financial Literacy Excellence Center (GFLEC) at the George Washington University School of Business (GWSB) found that African-American people struggle with low levels of financial literacy.

Report: Black Americans Have High Financial Literacy In Some Areas, Scored Lower In Others

Financial literacy is strongly connected to financial success. Saving for retirement, multiple streams of income and smart management of debt are all factors in a stable financial life. But a study published recently by the TIAA Institute and the Global Financial Literacy Excellence Center (GFLEC) at the George Washington University School of Business (GWSB) found that African-American people struggle with low levels of financial literacy.

According to the report, called “Financial Literacy and Wellness among African-Americans: New Insights from the Personal Finance (P-Fin) Index”:

  • African-Americans’ financial literacy is lower than of white people in all but one area
  • African-Americans and whites scored closely in the area of understanding financial risks
  • Of the Index’s questions, African-Americans answered 38% of the Personal Finance (P-Fin) Index questions correctly
  • White answered 55% of the Index questions correctly
  • African-Americans answered only 32% of questions correctly about insuring
  • African-Americans financial literacy was most fluent in the area of borrowing

“This important research and data set underscore the centrality of financial decision making in modern America,” said Cy Richardson, Senior Vice President for Programs, National Urban League. “The convergence of financial, credit and debt management provides headwinds for us all – yet structurally speaking the African American community has little margin for error compared to other groups and must continue to demonstrate progress on the critical measures and knowledge that is necessary to make financially responsible decisions – decisions, that are integral to our everyday lives and existence.”

Related Article: Intersectionality and Navigating Your Career

However, the disadvantages against Black Americans even today are a major component to a lack of financial literacy and upward mobility, according to researchers. A study published in 2018 that compared Census Bureau race data with IRS tax returns found that Black Americans have a significantly lower upward economic mobility in comparison to white Americans, regardless of family status, such as marriage or a single-parent household.

The paper suggests that African-Americans, facing higher rates of incarceration and less ability to access higher education in comparison to white people, could be tied to the lower rates of economic upward mobility.

The authors of the study contend that the major gap seen even between Black men and Black women, with Black women seeing much more successful rates of financial mobility, could also be tied to racism.

“Black-white gaps in high-school dropout rates, college attendance rates, occupation, and incarceration are all substantially larger for men than for women,” the authors write. “Black women have higher college attendance rates than white men, conditional on parental income.”

The TIAA Institute helps both individuals and businesses increase financial security.

“African-Americans make up 13 percent of the U.S. population and constitute a critical segment of our economy. Yet financial literacy gaps exist across this demographic group regardless of gender, age, income level, or degree of education,” said Stephanie Bell-Rose, Head of the TIAA Institute, in a statement. “It is imperative that we continue to shed light on this challenge in order to better map a course for financial success.”

Latest News

Atatiana Jefferson

Wrongful Death Lawsuit Filed in Police Shooting of Atatiana Jefferson; Drug Industry Announces Diversity Guidelines in Development of New Medications; and More

Wrongful death lawsuit filed in the fatal shooting of Atatiana Jefferson by police. Family members of Atatiana Jefferson, a 28-year-old Black woman who was fatally shot by police through a window in her own home, have filed a wrongful death lawsuit against the city of Fort Worth, Texas and the…

Southern Company: Georgia Natural Gas Opens 10th Annual TrueBlue Community Awards Call for Entries

Originally published on southerncompany.com. Honor recognizes nonprofits supporting Georgia during COVID-19 and distributes grants to sustain continued efforts Georgia Natural Gas (GNG), Georgia’s leading natural gas provider, announces the call for entries for the 10th Annual TrueBlue Community Awards. This year, the awards will recognize hardworking Georgia nonprofits for their service providing COVID-19 relief…

Cori Bush

Multiple Congressmen ‘Accidentally’ Called Cori Bush, Missouri’s New Representative, ‘Breonna’; American Medical Association Classifies Racism as a Threat to Public Health; and More

Multiple congressmen “accidentally” called Missouri’s new representative Cori Bush  “Breonna” during Capitol event. Congresswoman-elect Cori Bush said she was stunned and hurt on the evening of Nov. 16, after a number of different Republicans called her “Breonna” during a new member orientation at the Capitol in Washington, D.C. Bush, who…

transgender, election

Meet 6 Transgender and Gender-Nonbinary Politicians Who Broke Ground in 2020

Despite the fraught nature of the 2020 presidential election results, victories at state levels put at least six transgender and nonbinary individuals in legislative positions. These small but significant gains for transgender visibility in politics came just before Transgender Awareness Week, which celebrates transgender people from Nov. 13–19 before Transgender…

Roger Ferguson to Retire as President and CEO of TIAA

Originally published on tiaa.org. TIAA, a leading provider of secure retirements and outcome-focused investment solutions to millions of people and thousands of institutions, said Roger W. Ferguson, Jr., intends to retire as President and CEO on March 31, 2021. The company’s Board and Mr. Ferguson believe it is an appropriate…

Justice Samuel Alito

Justice Samuel Alito Delivers Series of Highly Alarming Partisan Remarks; Racism Impairs Brain Performance, and More

Supreme Court Justice Samuel Alito delivers an alarming series of homophobic, partisan remarks. Supreme Court Justice Samuel Alito rarely makes public appearances, but when he does he apparently wants to make them count, being as irksome and controversial as possible — and completely disregarding the usual ethics required of judges…

Hershey: Leading With Empathy and Connection

Originally published on thehersheycompany.com by Katrina J. Briddell Manager, Global Sustainability & Social Impact There’s no denying: it’s been a tough year for everyone around the world. Here in the U.S., we’ve faced an unrelenting pandemic, mass movements for racial justice, raging wildfires, devastating hurricanes, and an election cycle that…