Black People : Spending habits in the black community

Discussion in 'Black People Open Forum' started by karmashines, Oct 8, 2005.

  1. karmashines

    karmashines Banned MEMBER

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    I was reviewing some of the comments in the Bill Cosby thread, and wanted to discuss in more detail this issue.

    Some have said that some blacks, especially poorer ones would rather spend their money on a fancy car or designer clothing than buying a house or starting a business. Have you observed this with friends and family you know or is it more of a stereotype? If there is a ring of truth to it, then why do you think it is and what can be done to change perceptions?
     
  2. watzinaname

    watzinaname Well-Known Member MEMBER

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    Well, I think the problem is, that some don't see purchasing a house, or starting a business, as something that is attainable to them. Buying a flashy car, or expensive clothes is a more instant gratification. If these are the images that a person, any person, constantly sees as status symbols, then is this what any person would eventually desire?
     
  3. Jflex!

    Jflex! Well-Known Member MEMBER

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    ditto...:darts:
     
  4. Riada

    Riada Well-Known Member MEMBER

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    This is NOT a stereotype from my vantage point. I’ve noticed this all of my life. It’s like I said in another thread, some of our folk, including some of my relatives, are so much into “showy” things They want to be noticed, so they would rather spend the money NOW on something flashy that will impress others or that others will envy them for rather than save the money for a down payment on a house. Some folks I know would rather have a Hummer than a Toyota because the Hummer gets a lot more attention and arouses envy among others they hang with. Some of my own relatives would rather for me to buy their children a toy or a pair of designer sneakers for a gift than a savings bond. Delaying gratification is NOT something they value at all. They say they could be dead tomorrow, so why do all that saving. When I ask them, "What if you aren't dead tomorrow," they get annoyed.

    This is a constant problem with some of my distant family members because some of us in the family were taught to save, delay gratification, value education, etc. and others were not. We have totally different values. So some of us are not always in a crisis situation like some of the others. It’s ironic that the ones who spend their money foolishly seem to hate the ones of us who spend our money more wisely. After they’ve squandered their money on what they want, they want the others of us to “help" them out to get what they need. I do it sometimes, but it’s so tiring and I know it's also enabling them to continue the pattern, but . . . . And they NEVER listen to advice about how to avoid these constant crises. They resent the advice. Yet every crisis seems to be a surprise to them.
     
  5. jamesfrmphilly

    jamesfrmphilly going above and beyond PREMIUM MEMBER

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    the system is set up to make it easy for blacks to buy things which will depreciate.
    it is difficult to buy things which will appreciate.
    this is not an accident.
     
  6. Sekhemu

    Sekhemu Well-Known Member MEMBER

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    I agree with you sistah, people who manage money poorly were probably never taught to do so. What makes matter worst is many of them also have a jealous streak in them to boot.:bawling:
     
  7. KWABENA

    KWABENA STAFF STAFF

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    Some people don't even save money to buy their houses. Some people get the money from friends and buddies in the banks, and other family members. Many black people have the sorry habit(s) of throwing their families out to the road, instead of taking advantage of the fact that they may be able to buy a house, or car through family.

    CD
     
  8. kente417mojo

    kente417mojo Well-Known Member MEMBER

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    I have seen this many times in recent years. People would rather sell their car, house or property outside of the family before they even give family members a heads up. I've even seen family members discourage other members from starting a business or lending a helping hand simply because they didn't believe in them. It's sad and this is one reason why wealth never stays in the black community. Then that makes it harder for people to accumulate or save money.

    Black people seem to have very bad spending habits. We all probably buy stuff that we shouldn't buy at a particular time. We need to make sure we give to ourselves before we make every else rich. This means owning homes and having businesses instead of just trying to "appear" to be successful as far as money goes. Like another poster said, we concentrate on showing off, and that's a reason why we never have anything. It's like having a nice new beautiful paint job on a car, but the [email protected] thing doesn't even run.
     
  9. Aqil

    Aqil Well-Known Member MEMBER

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    Re: Black spending habits...

    These are tough economic times, especially for African-Americans, for whom the unemployment rate is more than 10%. Alarmingly, rather than belt-tightening, the response has been to spend more. In many poor neighborhoods, one is likely to notice satellite dishes and expensive new cars.

    According to Target Market, a company that tracks black consumer spending, blacks spend a significant amount of their income on depreciable products. In 2002, the year the economy nose-dived; blacks spent $22.9 billion on clothes, $3.2 billion on electronics and $11.6 billion on furniture to put into homes that, in many cases, were rented.

    Among our favorite purchases are cars and liquor. Blacks make up only 13% of the U.S. population, yet account for 30% of the country's Scotch consumption. Detroit, which is 80% black, is the world's #1 market for Cognac. So impressed was Lincoln with the $46.7 billion that blacks spent on cars that the automaker commissioned P. Diddy, the entertainment and fashion mogul, to design a limited-edition Navigator replete with six plasma screens, three DVD players and a Sony PlayStation 2.

    The only area where blacks seem to be cutting back on spending is books (!); total purchases have gone from a high of $356 million in 2000 to $303 million in 2002. This shortsighted behavior, motivated by a desire for instant gratification and social acceptance, comes at the expense of our future. The National Urban League's "State of Black America 2004" report found that fewer than 50% of black families owned their homes, compared with more than 70% of whites.

    According to published reports, the Ariel Mutual Funds/Charles Schwab 2003 Black Investor Survey found that when comparing households where blacks and whites had roughly the same household incomes, whites saved nearly 20% more each month for retirement, and 30% of African-Americans earning $100,000 a year had less than $5,000 in retirement savings. While 79% of whites invest in the stock market, only 61% of African-Americans do.

    Certainly, higher rates of unemployment, income disparity and credit discrimination are financial impediments to the economic vitality of African-Americans, but so are our consumer tastes. And what is even more shameful is the fact that African-Americans spend millions of dollars killing themselves. They spend millions on swine meat and other dead animal flesh, millions on alcohol, and millions on tobacco. Hundreds of thousands of African-Americans die each year from strokes, high blood pressure, heart attacks, cirrhosis of the liver (caused by excessive alcohol consumption), lung cancer (caused by cigarette smoking), arteriosclerosis (hardening of the blood arteries caused by fat in the bloodstream from the consumption of animal flesh and animal by-products), sugar diabetes, kidney and liver diseases, ulcers, stomach and colon cancers, etc. Yet they keep on eatin’ them pork chops and ham (the pig’s butt!), drinkin’ that Johnny Walker “Dead,” and smokin’ them cigs...When will they ever learn?
     
  10. kente417mojo

    kente417mojo Well-Known Member MEMBER

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    That's just sad. I've heard that stat about Detroit before, and it just amazes me that the only area we cut back is books. Everyone is aware of our bad spending habits except us.
     
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