Despite facing frequent financial stress, Black Americans say they’re relatively optimistic when it comes to their financial wellbeing, according to research by digital personal finance platform Achieve.
As reported in the findings, Black Americans were often twice as likely than white respondents to believe that their financial health will improve in 2024 and were the likeliest out of all groups to say their overall quality of life, financial savings, and ability to manage stress and emergency savings will recover this year.
Even though Black respondents were more optimistic, Achieve found that this group continues to face financial struggles, including many living paycheck-to-paycheck (76%) and some struggling to “make ends meet” (33%).
“We know that the current financial climate has been difficult for many Americans. Our research shows that while many Black Americans are optimistic about their income and earning potential in the year ahead, paying off debt and managing the impacts of inflation on household finances continue to be major financial concerns,” said Achieve co-founder and co-CEO Brad Stroh. “In addition, those surveyed expect to see more increases in the costs of groceries in the coming year, adding to budgeting challenges.”
More than half (59%) of Black respondents in Achieve’s survey said making more money and increasing their savings (58%) are among their financial goals for 2024. Other financial targets included paying down debt (48%), sticking to a budget (25%), acquiring cryptocurrency (6%), and establishing a non-retirement investment account (6%).
Access to traditional checking and savings accounts is high among Black Americans, but Achieve reports that many struggle with having a solid foundation to meet their financial goals. Seventy-nine percent of respondents report having a checking account, but 58% said they have less than $500 in those accounts, including 13% who said they don’t have any money in their checking account. While 63% of respondents report having a bank savings account, 50% have less than $500 in savings, including 15% who said their savings accounts are empty.
Achieve’s study surveyed 556 U.S. consumers ages 18 and older and who identify as Black/African American.
SEE ALSO:
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- Employees See 401(k) Plans as Prerequisite Instead of Perk
- Participants are Failing at Retirement Literacy
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
