A recently released study by Merrill Lynch explored the ways wealthy Black people in the US spend their money.
What they found is that many well-to-do Black Americans take care of their family members, invest in their friends’ businesses, and eliminate debt. Many wealthy Black people in the US also spend their earnings preparing for the future and retirement.
The study, entitled “Diverse Viewpoints: Exploring Wealth in the Black/African American Community,” surveyed 455 affluent Black people –– defined as a household with annual income of $125,000 or more. The study’s findings indicate that this group of the US population is actually growing in size and has been since 2015.
The study participants reported working harder than other people in the affluent income category and charter their own career pathways. Affluent Black in the US are five times more likely to financially support their parents than other affluent people and four times more likely to plan to start their own business.
Merrill Lynch’s National Business Development Executive Craig Young told Black Enterprise that the study highlights the unique obstacles Black people face when trying to build wealth. Even affluent Black people, the study found, are 50% less likely to list retirement as a current financial goal, and are two times more likely to be trying to get rid of debt.
“I encourage those who don’t have one to establish a relationship with a financial professional,” Young told Black Enterprise. “When working with an advisor, be transparent about your current financial picture. Set your goals and lay out a plan to achieve them, whatever they may be.”
Check out the full study by clicking here.