Financial Literacy Among Black People
Financial literacy is must-have knowledge for everyone as it affects almost every aspect of our day-to-day dealings. Financial knowledge does not only arm us with the understanding required for proper monthly budgeting, paying off bills and taxes– it goes beyond that.
Financial literacy helps you prepare for more. It influences your decisions such as choosing the appropriate life insurance, looking into investments and negotiating best rates, loan acquisition, understanding risk, and uncertainties, managing your banking, etc.
The above-listed decision points and more require a fair amount of financial literacy to provide you with a seamless life process.
P-Fin Index(Personal Finance Index) of the TIAA Institute conducted research that showed that only 38 percent of blacks, compared to 55 percent of whites, were financially literate.
This poor information has led to individuals overpaying for services, under-insuring important things, and making poor financial decisions. This is, sadly, the case in most black communities.
Explained below are some of the factors that contribute to this illiteracy:
1. Poor Economic Background
With just over average earnings for most black people, their only focus is on how to feed themselves and where their next meal is coming from. They hardly go any further than that.
2. Cultural Beliefs
Belief systems are responsible for financial illiteracy among blacks. Many black individuals have been groomed into losing trust in their government’s economic systems and policies. These beliefs are passed down generations, and nobody bothers to ask questions.
3. Lack of Financial Resources
When there’s no correct information being passed, people tend to make do with what they have. The Same theory applies to financial knowledge, such that it is impossible to differentiate between the wrong and right financial information.
How To Bridge The Gap
Going the extra mile of acquiring this financial knowledge even at a fee is the first step towards bridging this gap. The more you understand that more is to be achieved, the more chances you have of achieving them. Acquiring financial knowledge can be done from a holistic point, or can be approached by understanding the various areas that affect you directly, such as debt management, budgeting, etc., before looking into future plans. These plans, such as savings, investing, and insurance, are what you use to protect your family even after your death.
Why Choose AfriKare Life?
The Afrikare Life idea was not only borne by blacks but also for blacks to address the important issues of financial security. The focus point, as it has always been, is primarily family; and will continue to be this way.
The AfriKare Life program helps provide you with the opportunity, proper knowledge, and practical steps to ensure financial stability during your lifetime. It goes further with options like indexed universal life insurance, which provides your loved ones with benefits even after your death.
Grasping it all at once may be daunting, from the types of life insurance, tax advantages, critical illness cover, etc. But with the right tools, the right pace, and the proper financial knowledge, we will guide you effectively. We will ensure that you’re doing what needs to be done and doing it the right way.
Book a session with us Now!