|VIDEO: Benjamin Robinson discusses the importance of providing education and financial management to support African Americans' optimisim.|
African Americans are more financially confident, but take less investment riskAfrican Americans report being significantly more confident about their financial situation than the general population, according to Prudential's 2013-2014 "The African American Financial Experience" study. "This presents an opportunity to take that optimism and make sure we are providing the education and financial management to support it," says Benjamin Robinson, chief administration officer for Prudential Annuities.
The survey uncovered that African Americans place greater emphasis on more immediate financial needs like debt, expenses, health care and life insurance, and less on factors like interest rates and inflation. Some of those considerations may be the result of a greater tendency toward savings vehicles and less common ownership of investment products. Overall, African Americans have broad product ownership, with 9 in 10 having at least one financial product. Yet a closer look reveals that African Americans are about half as likely as the general population to own mutual funds, stocks, bonds and individual retirement accounts.
"Before we spend a dollar, it's very important to save a dollar," says Robinson. "And, as we get down the continuum of financial management, I’d also add in the value of investing."
Want more information about the study? Watch a video of Benjamin discussing the findings or read "The African American Financial Experience." Want to speak to Benjamin? Contact Alicia Alston.
The Prudential Insurance Company of America and its affiliates Newark, NJ