Are African-American Spending Habits Keeping Black Community Poor?

Pining away for Jordans instead of saving up for a home or your children’s education? You’re part of the problem.

Are African-American Spending Habits Keeping Black Community Poor?

There’s been much discussion about the continuously frivolous spending habits of African-Americans while still struggling to get ahead in terms of long-term financial gain and recent statistics on African-American buying power are painting a vivid picture of just how much damage this counterproductive trend is doing in our communities.

via Financial Juneteenth

Did you know that every time you make a purchase, it is being tracked by big companies? It is a trend for big corporations to purchase data research that is conducted by independent organizations on your spending habits. This makes it easier to market their products to you.

For example, when our community runs out and purchases Michael Jordan shoes at consistent rates, that company no longer needs to spend their money marketing to our community. They will use that money to focus on getting new customers. A large percentage of the corporate budget is to collect this data, this information is very useful to the sales and advertising managers.

We have a population of about 40 million people and buying power approaching $1.1 trillion in 2015. African American buying power is at the epicenter of our economy. Our consumerism keeps American corporations rich and our community poor.

According to Nielsen, The State of the African-American Consumer: “African Americans shop more frequently than all other groups, but spend less money per trip and overall. These cultural and behavioral dynamics reflects their tendency to make quicker/smaller purchases based on short-term needs rather than the desire to stock up.”

The data also suggests that African-American women tend to be the primary decision makers for most household buying decisions.”

In response to that information, women are always the primary target. If the company can appeal to the emotional side of the woman and make her feel inadequate because she doesn’t have the latest facial cream, face cream, heels, makeup, toys for her children etc, they can convince her that the answer to all of her emotional problems lies in her wallet.

Then, she’s bankrupt and corporations are rich.

Using hard earned money to treat ourselves once is a while is certainly not a crime, but when our communities are suffering from investing more of their money into temporary, superficial things than things of long-term value, there’s definitley a huge problem at hand.

What are your thoughts on this topic, Bossip fam?

Shutterstock