According to a new survey on financial literacy, about 40% of Black Americans individuals aren’t able to pay all of their bills.
This comes from research presented in the 2023 Personal Finance Index report, conducted by the TIAA Institute and the Global Financial Literacy Excellence Center (GFLEC) at the George Washington University School of Business.
The research revealed some 24% of Black Americans reported decreased retirement savings and 13% have had to stopped contributing to their savings simply because they spend every dollar they have due to inflation.
Most of the country feels similarly.
Inflated living costs recently reached a 40-year high in 2022, with the current US rate at 4.98%, compared to 6.04% last month and 8.54% last year.
For example, as ESSENCE previously reported, listed rents across the country for available increased 15% from 2021, with the average rent price being above $2,000 a month across the county. Rent in cities like Austin, Seattle, and Cincinnati is up by 30%. The median asking price for rent in Los Angeles is $3,400.
TIAA’s research showed that 32% of Black Americans report debt prevented them from addressing other financial obligations with 27% sharing they wouldn’t be able to drum up $2,000 for an emergency. Additionally, 55% said they didn’t have at least one month of non-retirement savings.
“Every year we say the findings are troubling, but this year, more than ever, we see how low levels of financial literacy in a volatile economy can lead to problems,” said Annamaria Lusardi, the report’s co-author. “It’s important we focus on helping people of all ages, races, and genders, especially the ones who are the most vulnerable.”