scholarly journals The African-American Financial Services Market: Profiling The Substantiality And Viability Of An Underserved Segment

2011 ◽  
Vol 2 (2) ◽  
Author(s):  
Thomas H. Stevenson ◽  
D. Anthony Plath
Keyword(s):  
African American ◽  
Financial Services ◽  
Investment Portfolio ◽  
Survey Of Consumer Finances ◽  
Black And White ◽  
Consumer Finances ◽  
Portfolio Composition ◽  
The Difference ◽  
The U.S ◽  
Do So

The purpose of this study is to help marketers recognize, understand and respond to the underserved African-American financial services market in the U.S. To do so, the study examines demographic trends and financial consumption patterns of African-American consumers, drawing on the most recent Survey of Consumer Finances to explore the principal differences between black and white households asset holdings and financial product and service preferences. Findings indicate that the African-American market has grown rapidly in size and viability over the past decade, and that African-American consumers differ markedly from their white counterparts in terms of financial product preferences and investment portfolio composition. The difference between the two segments is especially evident in the case of relatively more risky, but higher return, financial products. Based on these findings it is apparent that marketers should endeavor to reach this increasingly attractive but underserved segment of the U.S. financial services marketplace.

scholarly journals Financial Services Shopping Preferences: A Comparison Of African American And White Households

2011 ◽  
Vol 5 (5) ◽  
Author(s):  
Thomas H. Stevenson ◽  
D. Anthony Plath
Keyword(s):  
African American ◽  
Financial Services ◽  
Empirical Studies ◽  
Shopping Behavior ◽  
Survey Of Consumer Finances ◽  
Black And White ◽  
Consumer Finances ◽  
White Household ◽  
Blacks And Whites ◽  
Effective Service

<p class="MsoBodyText" style="line-height: normal; margin: 0in 34.2pt 0pt 0.5in;"><span style="font-style: normal;"><span style="font-size: x-small;"><span style="font-family: Times New Roman;">The purpose of this study is to generate information for financial services marketers who are seeking to reach and provide more effective service to the growing African American segment. This information is needed because research has shown that the shopping behavior of African American consumers differs from that of their white counterparts in terms of information gathering and patronage patterns.<span style="mso-spacerun: yes;">&nbsp; </span>Therefore, different marketing communications techniques may be needed to reach these people. Nevertheless, there has been a paucity of contemporary empirical studies of how shopping behaviors manifest themselves with regard to the purchase of financial services. This paper uses the Federal Reserve System's most recent Survey of Consumer Finances to analyze differences between black and white household financial services shoppers.<span style="mso-spacerun: yes;">&nbsp; </span>Findings indicate that there are similarities and differences in the ways that blacks and whites seek to access the offerings of this industry.<span style="mso-spacerun: yes;">&nbsp; </span>Suggestions are offered to financial services marketers based on these findings.</span></span></span></p>

Federal Wealth Policy and the Perpetuation of White Supremacy

2021 ◽  
pp. 003464462110008
Author(s):  
Robert B. Williams
Keyword(s):  
White Supremacy ◽  
Household Wealth ◽  
Wealth Accumulation ◽  
Survey Of Consumer Finances ◽  
The Past ◽  
Consumer Finances ◽  
Tax Exemptions ◽  
Tax Deductions ◽  
Tax Benefits ◽  
The U.S

Since its inception, the U.S. government has strongly promoted the expansion of White wealth. These past policies have created the current wealth gaps in which White households typically hold >10 times the wealth held by Black or Latinx households. The tradition continues today. Using nine tax deductions, the federal government currently supports household wealth accumulation by nearly $640 billion annually. Although they make no overt mention of race, these tax exemptions are designed specifically to help wealthier households. Using evidence from the Survey of Consumer Finances, this article estimates the racial shares of these tax benefits and shows a clear pattern of racial favoritism. In addition, repeated efforts to eliminate the estate and gift taxes mean more intergenerational wealth is tax-exempted. As in the past, our current federal wealth policies are promoting White supremacy.

scholarly journals Estimating Top Income and Wealth Shares: Sensitivity to Data and Methods

2016 ◽  
Vol 106 (5) ◽  
pp. 641-645 ◽  
Author(s):  
Jesse Bricker ◽  
Alice Henriques ◽  
Jacob Krimmel ◽  
John Sabelhaus
Keyword(s):  
Income Tax ◽  
Household Survey ◽  
Model Parameters ◽  
Household Surveys ◽  
Survey Of Consumer Finances ◽  
Unit Of Analysis ◽  
Consumer Finances ◽  
The Difference

Administrative income tax data indicate that U.S. top income and wealth shares are both substantial and larger than shares observed in household surveys. However, these estimates are sensitive to the unit of analysis, the income concept measured in tax records, and, in the case of wealth, to assumptions about the correlation between income and wealth. We constrain a household survey--the Survey of Consumer Finances--to be conceptually comparable to tax records and are able to reconcile the much of the difference between the survey and administrative estimates. Wealth estimates from administrative income tax data are sensitive to model parameters.

Federal Wealth Policies in Support of Jim Crow

2017 ◽  
Vol 11 (2) ◽  
Author(s):  
Robert B. Williams
Keyword(s):  
Political Economy ◽  
Jim Crow ◽  
Survey Of Consumer Finances ◽  
Systemic Racism ◽  
Racial Wealth Gap ◽  
Consumer Finances ◽  
Wealth Gap ◽  
Critical Aspects ◽  
Do So ◽  
Taxation Data

Recognizing the specific ways that systemic racism has and continues to function in our society is essential to developing a political economy that effectively examines contemporary problems and issues, whatever they may be. To do so, this paper identifies key elements of an anti-racist perspective and uses them to illuminate critical aspects of our racial wealth gap. Given the nature of wealth – its inherent durability and transferability across generations – this paper demonstrates how the current racial wealth gap is the result of past wealth policies that privileged whites. Further, it demonstrates how our current wealth policies are not simply encouraging the concentration of wealth among the 1 percent, but also recreating a system of racial segmentation. In a time in which overtly racialized policies and laws are often illegal, our wealth policies now function as a modern version of past Jim Crow laws and norms. This paper relies on the Survey of Consumer Finances and Joint Committee on Taxation data to document its claims.

scholarly journals Family Finance in the U.S.: Recent Evidence from the Survey of Consumer Finances

1997 ◽  
Vol 83 (1) ◽  
pp. 0-0 ◽  
Author(s):  
Arthur B. Kennickell ◽  
◽  
Martha Starr-McCluer ◽  
Annika E. Sunden
Keyword(s):  
Survey Of Consumer Finances ◽  
Family Finance ◽  
Consumer Finances ◽  
The U.S

Fatalistic Tendencies: An Explanation of Why People Don't Save

2005 ◽  
Vol 4 (1) ◽  
Author(s):  
Stephen Wu
Keyword(s):  
World Values Survey ◽  
Household Savings ◽  
Behavioral Factors ◽  
Survey Of Consumer Finances ◽  
Savings Behavior ◽  
Consumer Finances ◽  
Cross Country ◽  
And Control ◽  
Do So

Abstract This paper uses data from the 2001 Survey of Consumer Finances (SCF) and the 2000 World Values Survey (WVS) to analyze the role of fatalism in determining household savings behavior. SCF respondents who feel that luck has played an important role in their financial affairs are more likely to realize their need to save, but are less likely to actually do so. Cross-country evidence from the WVS shows that those who believe they have little freedom and control over their lives are also less likely to save. The results hold after controlling for a number of demographic and behavioral factors, and are consistent across income and wealth levels.

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