Study: Black Women Need To Control Their Spending

September 30, 2008 ·

A new survey reveals black women's attitudes towards money, spending and saving.

Rhonda Mims, president of the ING Community Foundation, which sponsored the survey, and Glinda Bridgeforth, author of a series of books outlining financial tips for African American women, discuss the specifics of the survey and attempt to explain reasons behind the spending habits of black women.

Support of Others – Family, Friends and Church – Complicates Savings:

* 47% of Black Women Say It is Difficult to Have Desired Lifestyle Because of Financial Obligations to Their Immediate Family
* More Than a Third Have Loaned Over $1,000 to Friends or Family in Last Year
* 71% Say It’s “Very Important” to Give Money to Their Place of Worship


...And Spending Doesn’t Help Matters:

* 68% of Black Women Buy What Thy Want in Good or Bad Economy
* 41% Feel Guilty About How Much They Spend on Expensive Brands


Two in Five Report Total Savings of Less than $10,000

But Growing Interest i Saving and Investing Combined with Interest in Influencing Others and Learning New Things Augur Well for the Future

ING Foundation President Says Financial Services Industry Has ”An Opportunity and Obligation” to Help

* Most Black Women Manage the Investments for Their Households
* Black Women Worry More About Their Finances Than Their Health, Appearance, Job or Relationships – But Nearly 70% Don’t Have a Professional Financial Advisor
* Most Are Willing to Pay for Financial Advice
* Nearly Nine in 10 Say Race Doesn’t Matter When Selecting an Advisor


Most Black women are confident in their ability to achieve their financial goals, but obligations to others combined with a tendency to spend are complicating their saving and investing efforts, according to the results of a nationwide survey released today by the ING Foundation.

Nearly half (47%) of the 1,000 Black women surveyed said it is difficult to have their desired lifestyle because of financial obligations to their immediate family, and 68% say that they buy what they want — in a good or bad economy.

Among the Black women surveyed who said they were not saving as much as they like, spending too much/too much debt and financial obligations to their families were the leading reasons why they were not saving more.

“What we have here is a financial perfect storm. An inclination to spend combined with an extraordinary desire to help others financially has left many Black women behind the curve in terms of savings,” said Rhonda Mims, president of the ING Foundation and senior vice president of ING’s Office of Corporate Citizenship & Responsibility. “The good news is that Black women care deeply about their financial future, have a strong desire to learn more, and manifest many of the qualities critical to investment success."