Black women do not save. That is, of course, unsurprising considering the American culture of consumption has transformed into a culture of debt [1]. But it just so happens that structural racism has made partaking in this culture all the more costly for Black communities.
A few weeks ago, the Post Gazette featured a study that explored into the racial wealth gap in the United States. This time, researchers analyzed the fiscal divisions through a gendered lens. The findings told what we already knew: Whites (this time women) control the overwhelming majority of wealth in the United States.
The writeup, titled “Study Finds Median Wealth for Single Black Women at $5” (an obvious attempt to capitalize off of the mainstream media’s obsession with the pathology of Black women.), wasn’t perfect [2]. But the fact remains: the economic structure of this country combined with the financial illiteracy of Black women promise us certain financial doom.
Countless blogger and armchair economist questioned the study as well as the motives behind it, but these findings should inspire some serious self-reflection. As a 21 year-old, my negative net worth is typical for a woman of any racial background [3]. These studies, however, do force me contemplate the ways in which my current risky fiscal behaviors may be setting me up for a shaky financial future despite my middle-class upbringing and world-class education.
And that box of economic dysfunction is not too difficult to unpack. Why spend the money in the first place? What prompts women like you and me to live life on the edge of financial ruin?
Not to ignore the very real structural impediments to the development of wealth in black communities, but according to KK Charles (2007) blacks could shrink the wealth gap by as much as 50% if we eliminated what he calls “visible consumption.”
This is an issue that cuts to the very heart of Black womanhood. Black women literally wear their insecurities. An oppressive economic structure cannot be blamed completely. Continued attacks on Black women produce consumer culture that has an especially devastating affect on the emotional and financial well-being of all Black women.
As the media has been so quick to point out, it’s hard being a black woman. We’re continually told we’re too fat or too thin, too dark or too light, too picky or too easy. Black women have yet to succumb to the victimology that MSM tries to map onto us, but it is time that Black women grabbed the reigns of our economic destiny.
Changing The Channel
Black women cannot afford to be passive consumers of the media we are presented. Constant critical analysis of the way we’re represented in MSM is essential to developing a sense of self-worth in an unsympathetic society. BET is an easy target; however, the brazen materialism and misogyny that many young women have become keen to consume provide examples of the ways that we’ve
internalized the negative images that we have been force fed since birth.
However, reprogramming requires more than a rejection of the degrading music, videos, and film we encounter daily. It demands a new understanding of how we view the problem.
It’s time that we realize the repercussions of conspicuous consumption don’t confine themselves to innercity housing projects. Much maligned is the black woman who will spend $500 on her weave but can’t pay her light bill. We ridicule these women. We scorn them for their unrespectable behavior, but at the end of the day, we are these women. No matter how we may justify our spending sprees, few of us can afford to throw our money away. But old habits are hard to break.
What Are We Teaching Our Daughters?
I resist the temptation to blame entirely the designer-clad booty shakers on BET for our financial peril. These are issues that began long before Bob Johnson’s Frankenstein hit the airwaves. Studies show that bad financial behaviors are learned [4], so I’d venture to say that the majority of us who can’t balance a checkbook grew up with parent’s whose bank accounts, for one reason or another, were consistently overdrawn.
I am proud of most of the things I’ve received from my mom: her sense of humor, her love of music, her good genes that will keep me looking 35 when I am well into my 50s. But from her I also learned that worthwhile women pay meticulous attention to their appearance. That same voice that has me reaching for a mirror 
10 times a day also has me reaching for my debit card as soon as I see a pair of shoes that would match perfectly with my new dress.
Before young girls are able to set priorites for themselves, we determine them. So let’s teach eachother that we don’t have to wait for a man to acknowledge our beauty. Every day should be a celebration of Black womanhood. That includes abstaining from participation in a celebrity culture which delights in dissecting the flaws of female celebrities.
Mental stability and health are inextricable linked to that of our bank accounts. We as black women will never be able to close the dreaded wealth gap if we don’t first take time to learn about ourselves as well as the costs and consequences of reckless spending. Not only for ourselves but for our communities.
1. “Why can’t Americans save a dime? – MSN Money.” Personal Finance and Investing – MSN Money.
2. Ta-nehisi Coates does a characteristically brilliant job problematizing the Post’s presentation here.
3. The most stunning findings measure the wealth of single women between the ages of 36 and 45.
4. “Parents Offer Key to Children’s Financial Well-being.”
Article by Kimberly Foster
Kimberly Nicole Foster is an internet addicted, pop-culture obsessed political junkie currently flexes her academic muscle at Harvard University. She's concentrating in African-American studies and Government, and preparing to write a thesis on black women's diverse role in political coalitions. Check out her blog "Anything Goes".
Kimberly has written 1 article(s) for us.
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Good Article!
From my experience, and I know I'm going to ruffle feathers by saying this, I think a lot of young women in general, have a laissez-faire attitude with their money because they feel they are going to marry a man who is rich, or at least richer than themselves.
In the past, when women were most likely to be seamstresses and stewardesses, yes that would be true, but the reality is that even amongst white people, you're most likely to marry someone who makes about the same as you do, in which case, they will not be able to afford your luxuries.
So if there is one thing that must change, it is the idea that a man will bail you out, hell a man, might even be a burden. You need to be smart…I would recommend Rich Dad, Poor Dad which probably could give a better explanation on how to be smart with money.
Good point – Based on the conversation from yesterday, it would be safer (57% more safer) to assume that a man will not bail you out.
Although, I do think a lot of women that go onto make decent money aren't as dependent on the concept that a man will take care of us, so we save/spend accordingly.
I do admit to one purchase that was made based on the assumption that a man would be in my life. I bought my townhouse in '05 thinking that surely within 5 years I'd be married and could use it as investment property or sell it. Because 'love & success' are separate (sarcasm) I should've not factored this imaginary husband into my personal real estate strategy. However, end of the day…I own it, get a tax benefit, and like having a place to call home.
Actually it would be less than 57%, because in order for a man to "bail you out" he would have to make "significant" higher income.
I'll give you an example, a couple years ago I was talking to Junior girl in college in Massachusetts, and I asked her what was the minimum income she expected from her husband, she replied $80,000. The girl at the time had no idea what she was going to do with her life.
The average gross income in the U.S. as of 2005 was $42,000 of which $31,000 was disposable. The top 10% of people in the U.S. make a salary of about $90,000 a year. The top 1% make about 1.2 million a year. People need to learn to be realistic, because when you have unrealistic goals to early in your life, you carry them on and what you end up with is disappointment.
" The top 10% of people in the U.S. make a salary of about $90,000 a year. The top 1% make about 1.2 million a year. People need to learn to be realistic, because when you have unrealistic goals to early in your life, you carry them on and what you end up with is disappointment."
funny part about it is most don't understand how difficult it is to reach that six figure mark…this economy was never designed for some many to have so much in terms of salary and wealth…that's why its laughable in some respects when you here people expecting these outrageous sums of money coming straight out of school or in starting a business…
some=so
Where are these women that expect a man to have 6 figures?! I think the women who are Stacy Dash pretty might be accustomed to getting attention from the 6 figure dudes, so they expect that or better from any dude that approaches her.
People – cheddar attracts rats. So yes, if money is the primary driver of a certain type of woman…men only feed the bait when they put forth the flash to get the uber hot chick. I fault the man constantly attracted to that type of money hungry uber hot woman, just as much as I money hungry uber hot woman.
But several of us 'moderately hot' *I jest* good women simply want a good dude that has a lifestyle that is similar to ours. Is it nice when you meet a good, down to earth dude, not sweating himself and making 6 figure? Absolutely. But I don't diss the dude working in a similar function as me, whose net worth I can guestimate based on mine. I've dated good dudes making way less than me as a result of a career change, but I believed in their potential/work ethic/vision.
So again, I'm baffled cuz I have a circle of girlfriends, who make decent money that simply want a man to meet her half way – not a dude making goo-gobs of money. (In all fairness, I do have some money hungry moderately cute friends too! lol, but I *get* why they're still in pursuit of a man).
Cheddar attracts rats. Nice
"Where there is cheese there are rats,
Where ever there are rats there are cats,
Where ever there are cats there are dogs.
If you got the dogs you got bitches.
Bitches Always out to put their paws on your riches.
If you got riches,you got glitches.
If you got glitches in your life computer turn it off and then reboot
and now you back on.
Can't just put the cap on the old bottle once you pop it that will spoil it, gone and drink it and enjoy it.
Mama i'ma Millionaire.
Black women looking for men that make at least 80k = win for the bitter black dude.
It’s funny how in our community, $80,000 is considered to be slightly above broke, when there are so few of us who will actually see such income numbers in the future. Unless, of course, we are successful drug deals or gangsters.
most people dont make that much in there twenties. more will see it in their thirties. but even so, its a tiny fraction of black people that will ever make that sort of money. as a black man making that much, you can do as you damn well please. of course some chicks need alot more, but there are so many other black women that work themselves and make decent livings and dont need millions or even six figures in a mate, that you can clean up as a bitter black dude making 80k, even 50 if your game is tight and you are young.
lol – I must be skewed. I went the public accounting firm route and now work in finance/accounting at fortune 500, so 80k at 30-35 isn’t really unrealistic in my industry. Sure salaries are dictated by industries. I wouldn’t expect a 30-35 teacher to average at 80k. That stat was enlightening to know that the top 10% earn 90k or above.
Plus – birds of a feather tend to flock together. I didn’t go to 2 said single-sex hbcus in the town I now live; however, lots of them go onto grad school and earn decent $. Perhaps living in ATL has skewed me as well. I dunno.
80k is a good living. no one said it was unrealistic. it just isnt common. black men who make that have alot of options. i went the law route. in my field its not uncommon for 23-26 year olds to make 160k a year. so it depends on the field. if you limit yourself to your immidiate surroundings you may not be so special, but if you take a step back, you are highly sought after. especially as a bitter black dude making a good living in a city like dc or atl. i dont limit women i date by putting a salary requirement on them. if they passed the bar, or work at a bar, its all fair game.
Change you name to Blessed Black dude. Because that's who you are if you ar 25-26 years old making 160k a year. You have nothing to be bitter about.
I meant your. Damn, they need spell check on this bitch for real. lol!
wait. i dont make that much. just said it wasnt uncommon. so add that to my list of reasons that im bitter.
There are few blessings in working a miserably boring 12 hour day on Thanksgiving while your whole family eats turkey and string bean casserole so you can afford to pay your six-figure student loan debt. hehe
It might be a blessing in there somewhere, you just don't see it. How about having a job period. Or a family to even get leftovers from. Don't front, you know them Thanksgiving leftovers are the bomb for lunch. And as far as the student loan debt. hahahahahahaha!! Please, you actually paying them niggas? Sallie Mae gets a hardship deferment from my ass on the regular, lol, times is hard, you better tell them to fuck off until you get your good job. Send they ass $25 and keep it moving.
This attitude…this one right here. lol This is why I do NOT date lawyers anymore.
I lie about my profession. But i do it in a way so you know im lying. at the same time, im making it rain. chicks find my charm irresistible.
Child, please!!!
PSA: if you have sex with these women, I suggest you rethink your trifling ways. Sex leads to babies–sometimes no matter what you do to stop them. And sons inherit the bulk of their intelligence and acquire the majority of their social training from their mothers. Don't set yourself up to be trapped in a nightmare just because some girl you liked your sophomore year of college preferred to sleep around with athletes and losers than to give you the time of day.
Just sayin'.
a baby would be an awful travesty. thank you for this food for thought.
Well there’s nothing wrong with that, you just need to understand that you’re part of an elite group of people. The problem is that people in your situation often feel that they’re the norm, when in reality they are the exception, especially in Black America.
I think the stats go that something like less than 50% of people in America, have a bachelor’s degree, and of course it is quite well known that only 40% of the population actually has passports. I blame in on the falsity of the American Dream, it forces peoples to ignore reality, with the promise of a non-existent wealth.
Basically stop watching all those lifestyle of the rich and famous shows(i.e Cribs)…lol
Good point – sometimes on this site – I feel there is a gap between the audience and blog subject. I feel like a handful of folks that visit the site are in the ‘elite’ group; however, many of the articles talk about the portion of the black demographic that shine a more negative light on what it means to be black.
Its tough. More people need to comment. About 5% of the people that visit the site actually comment. We need more voices to speak out with their opinions and experiences.
Would you say it’d be hard for a woman to feel financially secure in a man that can’t provide the same level of financial security that she can provide for herself? Like say I make $XXk, and have a comfortable amount of expenses/savings that allows me to travel for fun/therapy (some women shop, I jump on planes). I meet a man that makes considerably lower and say, “hey why don’t we go to the beach this weekend?” Assuming that we’ll go dutch and he simply can’t afford it. Do I alter what makes me happy outside of him, or do I seek a man who can meet me half way – which allows me to be happy with things I like to do AND his companionship.
(b/c IMO, I think women seek security from men – financial/physical/ and to a lesser extent emotional security – people say that love should be enough – yet many divorces end b/c of money – not love). I don’t think I’ll ever stop working. I enjoy it too much and worked to hard to disregard it. I may not reach my full professional potential in exchange for a more balanced family life; however, I’m not going to be a stay at home wife/mother.
Well if you look at the history of this country, divorce rates spiked up after the combination of the sex revolution and the rise of feminism. Both were highly commendable, but the mix brought about an increasing sense of narcissism that only grows worse with each generation.
Financial Security is very important to women, but it itself is a product of programming, “I work hard…thus I need the best and richest man available.” If men had been programmed to do the same…our marriage rates would be twice as worse as they actually exists.
Financial security has always mattered to women, however, they should not matter more than physical and emotional security.
Financial security > Physical and Emotional Security = Epic Fail/ Epic Disappointment, in a long period of time.
I totally agree. Counter culturalism of the 60s was 'good' for civil freedoms yet detrimental to the familial unit. (Folks sometimes don't understand that freedom and responsibility go hand in hand!)
Of course men aren't programmed to seek the same type of security. I'd say naturally, men are driven to spread their seed to carry on their dominance/lineage etc. Men tend to be attracted to women with large hips and lips because it's an indication of a healthy, fertile woman. In turn, if a woman is going to carry a seed, she certainly expects to be provided for (financial) and her and the child to be protected (physical), nor should she be ashamed in this expectation. To your point, the game has changed; however, not changed *that* drastically. If I meet the man of my dreams, I do admit to wanting the option (tho' it's unlikely that I will take it) to dedicate myself to the family 100%, meaning that I'd have to be physically and financially protected.
I downplay emotional security b/c historically, the instituation of marriage didn't necessarily provide an emotional outlet for a woman. Marriage was put in place back in the day for financial/community prospertiy reasons, not love. Heck in more primitive cultures, men and women don't really hang out much, further showing that emotional security is a 'bonus' not a given of Western relationships/marriage.
Well as I said before, and I think yesterday, that most people don't go with what they want ideally and that's actually a good thing, if they know how to deal with it.
If you look at the wives of most rappers, they tend to be much less attractive in comparison to the groupies and the models that appear in their music video. Even though they have access to tons of beautiful women, they often settle for what most will consider average.
The fact remains, is that all this "biology" that we often hear about, which legitimizes women chasing wealth and men chasing beauty, never addresses something which I like to call "Mental Security": in layman's terms peace of mind. Financial security does not provide peace of mind, neither does having the most beautiful woman in the world in your bed.
Above all else, a partner who does not stress you out, and makes life livable and worthwhile, makes a successful relationship. However, this is a hedonistic society, which hides under its puritan origins…it is quite difficult for someone to make mental security a priority in such a society.
Well, I think we lease mental/emotional security to the person we're involved with. That's why over on the stacy dash post we're seeing that at 43, she's just now taking ownership over her mental/emotional well-being. I'm guilty of seeking validation in others at times.
I do think for some, mental/emotional security is earned when a man demonstrates that he can protect/provide for you. (Maybe not excessively, but the basics at least). Stress is not being able to pay the mortgage and taking it out on those closest to you. So sure, you need to be able to respect and communicate with your partner (mental/emotional) security – but I think (for a woman) it's easier to place your trust in a man, when she feels that he's 'got her.'
You see that ABC special when the woman became the primary source of income for the house (was a special on how the recession hit men way harder than women). The wife straight up said she lost respect for her husband as he became more adjusted to being an 'at home father,' while she made the $$$. Her mental/emotional security was somewhat dependent upon the social paradigm that a man provides/protects (hate to use the Steve Harvey reference, but that was a key take away). Not saying this is how it should be, but for those of us who grew up with a father in the house who was primarily responsible for the income…that builds our concept of what a man is 'supposed,' to do – there is all sorts of emotional/mental security in that. Likewise I learn what a woman is supposed to do (even if she works) from my mother. Changing that mind-set requires a lot.
I don't think that's completely true. I think women in relationships with men who make a good amount of money, will provide the "imagery" of contentment and satisfaction.
When black men and black women, were barely surviving during slavery, black men and black women got along better, than they do today. So the simple fact is that we became more materialistic, or like Minister. Farrakhan might say, "We assimilated into a burning house (American values system)"
When you look at the statistics, black people who live in the suburbs actually score higher in levels in stress, than those that live in the suburbs. (We are the only racial group where this is applicable.)
So yes we live in narcissistic society, and though it is hard wired into us, the simple fact is that it is not working. A fool is one who repeats the same thing over and over again, expecting different results.
So what do you propose, realistically? I agree that we are in a narcissistic / individualistic society. Am I to sell my house, abandon my cpa license and go dance (thus being in a more community environment of other women that cater to men? *sarcasm*) move to the city? Did we really get along better, or did people value their role in the community more (ie did the woman accept the cheating man b/c of how disruptive a divorce would've been to the family/community – furthermore she didn't have a job to support herself if he abused/cheated on her – back to that double edge sword of counter culturalism).
How do we get from where we are today to a more optimal situation? If I'm ready to make that move, do I step out alone…or will it depend on another man to meet me half way? Do I recalibrate what brings me stress (no worries about missing a mortgage payment, but more stress related to relationships/connecting)? *although, I find people to be more unpredictable than the economy!* Am I foolish to want a man to be my homey, lover friend (to me and only me and not be scared of the commitment) AND to contribute to the household?
@K.I.M
As far as during the times of slavery, infidelity probably occurred, but I am quite certain it wasn't as prevalent as it is post-sex revolution…for the record.
I just finished reading the Autobiography of Martin Luther King, and one of the things I learned was the importance to value the least of our people. You see we currently live in a society, where the poor are despised, and the middle class is ignored until election time. Basically, people need to know they matter, even if they have no wealth.
Simply having a bachelor's degree, puts you in the elite category amongst African Americans. Being elite, should not separated from their people. I mean Jewish people have their own elite issues as well, however, when one Jew is in trouble, Jewish people rise like a Tsunami to defend them.
There is nothing wrong with you wanting a man to contribute, but a man can't be useless if he cannot provide financially security to a woman, if that was the case an ugly woman would be useless as well and might as well kill herself.
I'm going to Med School next year (all things considered), money I don't believe will be a problem. However, the fact remains that all of us matter, the more we buy into this narcissism and individualism, the more damage we do to our race. No minority group in this country has achieved success by being individualistic…we won't either.
@KIM. you're not foolish, just increasingly unlikely to find it in time to have babies. you may have to sacrifice some things that you have always expected. or just become comfortable with the life you have, with no regrets if you dont find the one. c'est la vie, right?
@BBD – I still think I'm too awesome to start lowering standards, holler at me when 35 – if still single, I'll may accept the bitter black dude as a sperm donor; rather than valuing my worth enough to know that I and a child I bear with a man is worth full commitment. I'm still stuck on the ladder right now. I have started placing myself in more diverse situations to ensure that my pool of available candidates isn't limited to a certain type of man. I know I wasted 3 valuable years on Mr. Bitter Black Man in the past, and have a tendency to be attracted to Mr. Fear Commitment man. I gotta change me to make sure I accept and am attracted to the Mr. Good Dude Inside Out.
@KIM thats the spirit. as long as you dont start eating p+ssy, we cool. Atl is known for that you know. Entire villages of bitter black women that have turned to cannibalize each other, ick
@BBM – Then practice being a good man and encourage your male friends to live to a higher standard. Not sure how old you are, but I agree with some others, that it's time to put on your big-boy whitey tighties and start treating women like a man should. Women will treat ya right and not seek attention elsewhere. (then again you have bigger fish to fry right?
~
i believe men are driven by the desire to reproduce. i try to make it to the sperm bank two or three times a year myself. seriously
LOL!!…i dont know if you meant to be funny with the statement but it caught me off guard…
yup. its a fatal contradiction. women want the same status as a man, but want the man to be their superior or equal economically. but men have married for years without regards to what the woman makes. women havent yet grasped that concept. they want the benefits of manhood, but not all of its burdens. womens right movement screwed everything up.
I bought my townhouse in ‘05 thinking that surely within 5 years I’d be married and could use it as investment property or sell it.
Were you in a relationship at the time you had this thought?
I had just started a relationship (lasted 05-08). I was naive. I was still under my Ohio culture/mentality. (grow up, go to school, go to work, meet man, marry, have fun, start a family). If I knew then what I know now, I may have waited to purchase the townhouse. It’s not a financial burden by any means, I just had to reconcile what I envisioned for myself based on how I grew up vs. my reality of living in a more $ driven, individualistic city.
Maybe I'm missing something here K.I.M but I think it's awesome that you bought a townhouse. I wish I had appreciating assets in my name (like a house or something). Do you regret it?
I think I'm older than you at 29 (some 23 year old said to me last night, "Oh the Berlin Wall stuff was in your generation, right?! lolol). In hindsight I would have waited until I was 29-30 to buy a place. Not because of financial reasons, but because of flexibility.
Like if I wanted to go back to grad school @ 27, I'd have to worry about covering the mortgage payment in addition to student loans etc. Being a landlord isn't as easy as folks think it is – even if you hire a property mgmt company. And to buy something more comfortable – I'm not in the heart of the action of the city. I'm a suburban girl at heart, so I like where I am, but there are times that I wish I had an apartment in the city.
Also the tax benefit is questionable. Say my mortage is 1500/mo and my tax saving is $3000. If I rented a place for 1250 = (1500-3000/12), I'd be at the break even point. Plus, stuff invariable breaks and it's my responsibility to get it fixed (water heater went out – the part cost $15; however, the labor was about $250).
I don't regret it; however, I think people talk about home ownership as if it provides a sense of nirvana. I'd advise a person to assess how stable thier life is in respect to their goals (ie do they want to go to school, move around etc) before they purchase a fixed asset such as a house. Your money might be better spent investing, building up a solid rainy-day fund, saving for a down payment for a house, paying off student loans, saving for a wedding, etc.
Thank you for saying this. When I tell people that I don't want a house for a while it's for the reasons you mentioned. Sure it's good to build equity, but my sister currently has a condo in Cincinnati that she's paying for that is empty. Renting was not an option for her because she lives in ATL and paying a management company would diminish any profit.
I'm starting school in the fall, not sure where I'll be when I'm done… a house would tie me down just like this silly car payment is sometimes a hassle.
"I don’t regret it; however, I think people talk about home ownership as if it provides a sense of nirvana. I’d advise a person to assess how stable thier life is in respect to their goals (ie do they want to go to school, move around etc) before they purchase a fixed asset such as a house."
Your right about it with that…lol..hell, seeing and experiencing it first hand with my dad (he owned a couple of rental properties plus his crib) having a house has its positives (tax breaks, appreciating asset) but at times can be weigh overrated (mortgage, property taxes, constant financial upkeep, fluctuation in the housing markets, fluctuation of property value within your area)…its so many variables involved and you have to be ready mentally and financially to deal with it…
Not to mention people think "I can be paying what I'm paying in rent on a mortgage" which is often true, but that does not include property taxes, HOA fees, etc.
My old Roomie's mortgage was $400, so were his property taxes. Had he not lived in the complete hood, his mortgage would have been higher and his monthly payment would have been through the roof.
I aint ready for that until I'm sure, for sure.
Content-wise, this article HAD all of the makings of a good op-ed piece but the title and introductory sentence set the tone for an editorial minstrel show fueled by negative stereotypes and little evidence that is anything but anecdotal.
The gross generalization of "Black women do not save" was enough of an indication that this story was heading downhill faster than the speed of gravity. I'll spare myself the energy of ranting on all of the contemptible aspects of this story and say this: The problem with saving money permeates American culture today. All races, genders, and age groups are guilty of indulging in consumer excess. To isolate this problem to Black America, namely women, is pernicious because it projects the image that we have an exceptional problem in this area when the truth is that we do not. Sure, there are people who spend money recklessly but they are evenly distributed across the racial and social strata of this country.
For someone who claims to be a Harvard-educated black woman the author should have used better judgment an word choice when she chose to undertake writing on this issue.
The opening sentence is purposely provocative and overly broad. Certainly there are plenty of black women who save their money; however, that sentence is based on the findings of the study mentioned in the piece.
I go on to acknowledge in the very first paragraph that Black women are not the only group who chooses to live beyond our means. However the consequences of that needless spending are much greater for our community.
An op-ed piece, by its very nature, is going to be anecdotal. As a woman, I point to those things I know to be true about Black womanhood. But I was also careful to note several times the institutional barriers that prevent the growth of wealth in Black communities.
Judging from your comment, it doesn't look like you made it all the way through the piece. I am in no way blaming Black women completely for the financial woes of the Black community. I am, however, urging Black women to reconsider their lifestyles in an effort to abate the problem.
Not much to add. Great article and so true especially where concerns the habits we learned from out parents. The first thing I learned as an adult was just how much I had to unlearn.
I agree with this author. The cycle of debt and conspicuous consumption and the lack of good home financial training is crippling us.
But working on paying down debt, curbing impulsive spending and teaching our kids about saving money is not enough. We need to start INVESTING our money — even if we just invest a little bit. I don't know why that is so rare among young black people. I don't know if it's because we don't trust Wall Street, we think the stock market is too intimidating, or we simply don't care. However, no matter what the reason, our collective lack of investing will always keep us at the bottom financially.
Growing up, my dad talked my ear off about investing my money instead of spending it and I would look at him with my eyes glossed over. Then he forced me to read a book about it (Automatic Millionaire by David Bach). I highly recommend that book.
The power of compound interest is incredible. When most of us think of interest, we think of it in a negative sense because we understand the power of interest through our car loans and credit cards. But compound interest is great when it comes to investing. The book I read said: "Let’s say you are able to put aside ten dollars a day; that gives you $300 a month to invest. Start doing this when you’re 25 and put it in investments that earn an average of 10% a year, do you know what you’ll have on your 65th birthday? $1.66 million."
So yeah saving $300 a month is good, but investing $300 a month is much, much better – and it can go a long way toward building generational wealth.
I’m kind of happy that I cannot identify with this post! Do I always make the best spending decisions? No, but I certainly am conscious of spending and have had a rule never to put on my credit card more than I can pay within one cycle (and it’s for critical $ purchases, ie – just put my ad volurum tax payment on it). Growing up, in my household every day, I had parents that were financially conservative. Their ‘new’ money came after hard work, so they had no incentive to spend it fast (I had a stripper tell me that she spends money easily cuz it comes easily. Heck, I work too hard to be willy nilly with my earnings). My father was educated in finance and a mother doesn’t care about name brands (I seriously thought lil kim was making up words to rhyme with gucci, prada, vitton etc b/c I had never been exposed to them until late high school and definitely college). This has translated into my mantra – protect your credit and name brands typically miss me. As long as something looks cute on me, I’m not too concerned about the brand name.
Financial conservatism definitely needs to be ingrained in us as children. Financial education needs to be updated and taught as we age and the economic environment evolves.
"Hoodrat chicks be wearing that fake shit, like her, she wear the same bag like it ain't shit" ………Ghostface, Wizards of Poetry, Goner…….I kicked it off with that line because the Black Woman's financial woes are also a part of her insecure ass mentality in her neverending quest to be somebody's wife, wifey, or number one. It's all about being better than the next chick. It's like advertisement. A lot of these guys that are worth a damn are not going to settle down with a woman who appears to be in any type of financial strain. So what do women do? The same thing these broke niggas in True Religion jeans do. Front. Fake it til you make it. I work in the Mortgage industry and I see these fake ass Huxtables losing their Million dollar homes everyday because they was Fronting in the first place. Shopping makes insecure women happy. And ladies, don't hop all over me saying "I like to shop and I'm not insecure" I'm not talking about those who can afford to, I'm talking about those who know damn well a Chanel dress is out of the budget, but they cop a $2500 dress in hopes of being the pick of the crop at First Fridays or some shit. And unfortunately, men seek out these women too. It's a lot of pressure to look like you have money. Money equals success to most of these douchebags. Men like to brag on their women, and women know this, so they go all out to be this BluePrint chick that every College educated guy is raving about. Bad weave is a big problem that has gotten out of control due to this issue. You know why it's so much suspect weave out here? Because most of these chicks can't afford it. Real Talk. A Good Weave is maaaaad expensive, I'm talking a couple of thousands. They hair alone should set you back a good 800 bucks. Black women see that men like hair, soooooo, they go out and buy knockoff hot shyt, or even worst buy Real hot shyt, but meanwhile, they can't pay their mortgage or that $800 car note on that Benz she knew she couldn't afford. But oh how the heads turn when that cheap ass weave is blowing or trying to blow in the wind while she's cruising in her droptop Benz blasting the new John Legend. Look at all the fine Black Educated Men looking at her as an equal. Giving her business cards at a fucking party. Oh the admiration. 50grand in the hole later and you still not married. Or you got dooped by the True Religion bandit and realized that he wear them bitches everyday and lives with his mama, now since you went out of your way to prove that you are part of the "Elite", you got to save face and not show the world you didn't do shyt but attract a user. But in a way, that's what these women get. I love the thrift store. I don't make a lot of money, and I know it. And whoever my so-called friends are know it. I don't feel bad when we go out and they have on Gucci this and Gucci that. A lot of times, my Thrift store come up is flyer than all of that expensive crap. I'm all about saving money. I want to plan a trip to Miami for my Birthday right? Do you know I make the least money, yet I'm the only one who has money in the Bank to just go? LOL!! I don't have a weave, or perm, I get a haircut twice a year. This is blasphemy to my Black Friends, but my White girlfriends do the same shyt I do and nobody accuses them of not having it together. It's a shame. People are caught up in image especially our women. It's a straight up recipe for disaster. Slavery is still happening right now, instead of on the plantation, it's happening in our brains. Save your money ladies, for real, and for those of you with kids? Don't jag your Tax refund on a chance to fuck a Celebrity All Star Weekend, save it, don't touch it, do that for like 5 years straight and watch how unimportant having the most expensive this and that really is, when you can travel to Japan and shyt on a mediocre salary. Find happiness elsewhere, it's more to life than the mall, and nobody in this world matters, so shop for what you NEED, and save your chips, and as far as a man bailing you out. LMAO!!! Oh man, those days are over ladies. You smoking that pipe for real. Niggas are not breaking bread like they used to, and can you blame them? It's too suspect out here, you gotta CYOA, (cover your own ass). I challenge all Black Females to not buy shit for a whole year. For real, not a purse, not a pair of shoes, not a barrette, and watch your bank account grow. I did it last year, and you know what, I still wore something fly and different everyday, I still had shit with tags on it!!! So I'm going on my second year of not buying shit, and you know what, it feels good to just swipe your debit card without checking your balance and sweating. Lose your insecurities and all of this crap will decease.
This is a good post. I bought the car that I have now with the thinking that it would last a while and I’d have a family, so of course I’d need a sedan. LOL
But I long ago cut up my credit cards and tossed them. I’m an island girl so the idea of working multiple jobs is not beyond me. I’ve worked two jobs since I was in high school. My mother taught me how to save and I didn’t really listen, but I learned my lesson post college.
At this point though my negative networth is due to a car payment and a small amount of student loans. By my personal projections that will all be eliminated in 4 years.
Then I’ll be like any other bouncing Becky free of debt. LOL
I can’t really relate to this post, either. I’m not at all into visual consumption. My spending vices are books and travel, and I’ve cut down even on those over the past few years. But, yeah, I’ll probably have a negative net worth for the next 20 years thanks to my graduate education. GODDAMN, WE WERE RAISED ON A SCAM. lol
Nice read & well written. My issue is the elitist approach of this post and many of the comments. As black women, are our consumer habits damaging our pocketbooks? Yes, no argument there. However, this is not a "black women's issue," rather an American one. But I get your point in that your concern is black women and are suffering the most.
No one seems to be taking into consideration many other socio-economic issues in our community. Majority of the post is this ideology that black women spend too much. "Much maligned is the black woman who will spend $500 on her weave but can’t pay her light bill." Really? The problem is not as simplistic as this.
If black women are the highest demographic of women living in poverty, raising children alone, and at the bottom of the totem pole in terms of salary, how the hell are they supposed to save money they don't have? Let's be real. Many women are living pay check to pay check barely getting by. As soon as they get one paycheck it's gone within a week due to paying bills. I know because I've lived it first hand. Not to mention, I have a degree, in graduate school, and have no children. So imagine our sisters who are the exact opposite and none of the above applies to them.
I don't know that parents are teaching the next generation, or even if they taught our generation the value of money and how to save. But I also don't know that if they did it would matter. I've had a bank account since I was 5 years old. My grandfather in a very detailed way showed me how to balance a bank book, write checks, deposit money and made sure I understood the importance of it all. My mother and grandmother taught the same lessons as well. But all that teaching doesn't matter if the person doesn't have the money to save.
I'm all for self accountability. But we need to stop using blame as a way to simplify issues. Instead we should look at the structural systems that keep black women in poverty and why we make less than their white counterparts. Once we find solutions to the root of the cause, then only can we offer this elitist suggestion to Just. Stop. Spending.
I agree with you to some extent. I realize that I occupy positions of privilege that have colored my thinking and are reflected in this piece.
Black America is not a monolith, so I have chosen to focus on a segment of the community of which I am intimately familiar. In no way do I presume to describe the behaviors of all Black women; however, I am certain that there are a good number of middle-class women like me who when given the opportunity to save or spend choose the latter.
.-Great Line(S)! " Black women literally wear their insecurities. An oppressive economic structure cannot be blamed completely. "
This article is really good. It is important for Black Women to get their finances togethor and overcome whatever insecurties they may have to cause them to spend their money. As far as finding a man that makes 80K or above. I think Black women knows a good black man when they meet them but might not give them the time of day. I am 25 going into a job that earns 214K a year and have two other job offers that pay 200K and above as well, but I had to go through hell to get here. I've been married over six years and met my wife in Philly and at the point I had no job and she was the one working and paying for the dates. She said she just new I was good man and was driven and I was. I earned 30K our first yr, 40K the next, then 50K half way through our marriage. Once I built up my IT experience I am now making a jump to International IT jobs. Me and my wife went through hell togethor but she stuck by me through thick and thin and look where we are. She is starting her business next year as well. Black women need to stick by their good black men no matter where they are at in their lives. There is no doubt in my mind that her pushing me got me here. Be a power couple and give each other strength, plus it keeps both of you in check in every aspect in life.
P.S. the background of a man doesn't matter that much. I grew up poor in Philly along with my 3 brother. My older Brother of 30 has a solid career, my younger brother of 22 is married with two homes and a real estate biz, and my baby bro on his way to med school. None of them are cheaters or jerks cause our mother raised us right and our StepFather taught how to be men. Good black men are around wether they currently earn or not. You just have to open your eyes ladies and stick by them.
One thing that my parents taught me was the value of a dollar; how to save it, invest and make it work for you. Conspicuous Consumption is the financial quagmire of the black community. Instead of investing "our" money into something that can bring us wealth only we can see, the majority of our people invest it into material goods that they and others can see for show. You don't drive or wear your assets, your assets drive the markets.
If people don't understand the difference between owning something instead of renting they'll never understand it. And as long as we live in a society that has indoctrinated the people with the ideology that in order for them to compete, they must buy whatever there is in order to do so. This lie only brings wealth to them and impoverishes the rest of the people.
The credit report is real, if you desire a future of unlimited possibilities, I advise many of you to pay your bills on time and learn all that you can to create real wealth. Those family members who think that you are the bank need to be denied the loans in the first place. If the bank won't give them a loan because of their excessive irresponsibility, then why should you? And that goes double for mooching boy friends, girlfriends or acquaintances.
We are the only group of people who think that if we became wealthy through a different route other than entertainment, we need to feel guilty about it. I earned it, you earned it, so now make it work for you.
Black women are ATM's, if it wasn't for us the Black Church and the black community would have fallen a long time ago. We must learn the art of reciprocation until it hurts and opens up our eyes by how we have allowed society to use us. Think how your spiritual growth is impoverishing many of you all the while enriching many a pastor. You can choose to have heaven right here on earth. Why is it that everyone else is allowed to, but we're taught something totally different? Think real deep on this one because the indoctrination is generational. Take an honest look at the picture and compare the situation and then come up with a solution. When was the last time your pastor feted you for a birthday or anniversary with cold hard cash??? Jesus is free and we shouldn't have to pay a cover charge.
Expand your reach in your quest for knowledge, 'keeping it real' also means studying everyone who has the means to teach you what it is you desire in this world regardless of who and what they are. When you limit your life you will live one.
Think rich and grow rich, in spirit and in truth. Think poor, stay poor with no spirit by believing in lies. There's a wealth of information out here, find some.