• by Jack Loechner , Staff Writer @mp_research, March 6, 2009

According to a new survey by The Smiley Group and Nationwide Insurance, 58% of African Americans expect their household situation to be better a year from now, compared to only 30% of the general population. However, the majority of those responding acknowledge they don't have a financial game plan and many don't know where to start.

Regarding Your Household's Current Financial Condition, Do You Expect It To Be Better Or Worse One Year From Now?
	General Population	African American
Better	30%	58%
Same	41	26
Worse	29	16
Source: Nationwide Economic Opinion PR Poll, February 2009

Though African Americans say they think their financial situation will improve in the next year, most of those surveyed indicated they are not taking deliberate actions to better their financial circumstances:

• Less than half say they are proactive about their financial future
• 3 in 4 say they do not have a written financial plan
• 1 in 3 say they don't know where to start when it comes to personal financial planning

Paying monthly expenses is the most important household goal among the General Population, while African Americans are equally as likely to cite paying monthly expenses and paying the rent/mortgage as top financial goals. Significantly more African Americans have the goal of paying rent/mortgage than the General Population.

Most Important Household Goals
	General Population	African American
Paying monthly expenses	35%	32%
Paying rent/mortgage	24	32
Saving for retirement	11	6
Saving for emergency	9	9
Providing for heirs/kids	4	5
Saving for buying home	4	6
Saving for education	3	3
Saving for future medical needs	2	1
Source: Nationwide Economic Opinion PR Poll, February 2009

African Americans are more confident than their general population peers in their ability to make savings and investment decisions, but are also more likely to indicate they are struggling with credit card debt.

On saving for college, nearly half of all survey participants with children under 21 said they are very or extremely worried about being able to afford a college education for their children, while only about one in 20 of all survey participants say they actually have a college savings plan. Only 3 percent say saving for education is the most important goal.

While the majority of African Americans believe a wealth gap exists between black and white Americans, most General Population respondents do not believe there is a gap. Of those who believe a wealth gap exists, half do not think the recession will affect the wealth gap, followed by one-third who feel it will widen the gap.

Do You Believe There Is A Wealth Gap Between AA And White Americans?
	General Population	African American
Yes	41%	86%
No	59	14
Source: Nationwide Economic Opinion PR Poll, February 2009

  

Of Those Who Said "Yes"... Do You Think The Current Economic Recession Will:
	General Population	African American
Close the gap	16%	19%
Widen the gap	35	31
Remain the same	49	50
Source: Nationwide Economic Opinion PR Poll, February 2009

The study also reports that nearly nine out of 10 African Americans acknowledge they do not have a professional financial advisor. However, African Americans say that they have a greater interest than the general population in obtaining financial planning information from seminars, a financial advisor, an insurance agent, family/friends or television.

The majority of respondents believe that less than $50,000 in investable assets is sufficient to work with a financial advisor, with many indicating that less than $25,000 in assets is sufficient.

Order To Work With A Financial Advisor?
	General Population	African American
Less than $25,000	44%	49%
$25K to < $50K	21	25
$50K to < $100K	15	16
Source: Nationwide Economic Opinion PR Poll, February 2009

The Internet is the most popular source of financial information for half of all respondents, followed by television and family/friends. African American respondents are more likely to acquire financial information from television, magazines, books and seminars than the General Population.

Where Do You Acquire Financial Information?
	General Population	African American
Internet	50%	56%
Television	42	51
Family / Friends	42	44
Newspapers	36	41
Magazines	22	33
Financial advisor	22	20
Books	19	31
Insurance agent	11	10
Radio	18	18
Seminars	7	15
Videos	4	5
Don't look	17	11
Source: Nationwide Economic Opinion PR Poll, February 2009

Those who don't currently acquire information from these sources report that they are "somewhat or very interested" in obtaining financial info from

the following sources.

Interest in Obtaining Financial Information (% Not Currently Acquiring Information)
	General Population	African American
Internet	57%	68%
Television	49%	62%
Family / Friends	55%	66%
Newspapers	48%	64%
Magazines	49%	56%
Financial advisor	53%	69%
Books	51%	67%
Insurance agent	40%	52%
Radio	41%	52%
Seminars	37%	60%
Videos	39%	56%
Source: Nationwide Economic Opinion PR Poll, February 2009

Candice Barnhardt, Nationwide's vice president for Diversity and Inclusion, concludes that "... this study is encouraging because... despite the economic downturn, there is a strong desire... to seek out advice and information to overcome the immediate financial challenges... "

Data acquired from a Web panel of 1,200 respondents split into two sample groups. General Population, ages 18+ (n=600) and African American, ages 18+ (n=600). The survey has a margin of error of +/- 4 percent.

To read the full release on this study, please visit here. Or, for the complete PDF file on the study, please visit Nationwide here.