Updated: How Do Black People Spend Their Money?

The Legacy Series contains the most read articles in the history of this website.  This is the #2 most read article in the history of Black Men In America.com.

By Gary A. Johnson – Black Men In America.com

Updated December 28, 2022 (Originally posted on November 5, 2010).

How black people spend their money has been a hotly debated topic in offices, at social events, and in beauty and barber shops across America. This article, “How Do Black People Spend Their Money?,” has been the most read and commented article for 12 years running.  Once I learned that this was the most popular and discussed article on the website, I decided to do some research and share this information with others. Over the years I found the process of gathering data and updating the site to be exhausting. It’s a lot to read. I update the site 1-2 times per year. This year I decided to update the article via video in the form of a pictorial slideshow. This way the reader has options. You can watch a 9-minute video which is the equivalent of having a summary video or a “Cliff Notes” version of how Black people spend their money, which includes a new component. I developed, “Gary’s 10 Tips To Prosperity and Emotional Fulfillment,” as part of the 2022 update.  Or, you can read and review the exhaustive data and charts/graphs.

Here’s something to think about.   Blogger Matthew Corbin lists 5 Reasons Why Black People Are Still Broke.

Here are Corbin’s 5 reasons:

1. Black people spend more money than they make
2. Black people don’t support black businesses
3. Black people don’t save their money
4. Black people don’t know how to invest
5. Black people aren’t working towards getting out of poverty

Click here to read Corbin’s explanation for each reason.

There is an article on Mater Meta.com, by Kimberly Anderson-Mutch, about how to build generational wealth.  Kimberly outlines the following 5 things that Black families can do to build generational wealth.

1. Talk to your children about wealth.
2. Buy a home or invest in real estate to create generational wealth.
3. Start a business.
4. Invest in stocks.
5. Establish an estate plan.

A recently released study by Merrill Lynch explored the ways wealthy Black people in the US spend their money.

What they found is that many well-to-do Black Americans:

• Take care of their family members, invest in their friends’ businesses, and eliminate debt
• Spend their earnings preparing for the future and retirement

The study, entitled “Diverse Viewpoints: Exploring Wealth in the Black/African American Community,” surveyed 455 affluent Black people –– defined as a household with annual income of $125,000 or more. The study’s findings indicate that this group of the US population is actually growing in size and has been since 2015.

The study participants reported working harder than other people in the affluent income category and charter their own career pathways. Affluent Black in the US are five times more likely to financially support their parents than other affluent people and four times more likely to plan to start their own business.

Another great source of information is “How Black/African Americans Pursue—and Define—Success,“ by Diallo Hall, a longtime content strategist and editor whose experience includes serving as Director of Thought Leadership at Fortune and Senior Editor at the Economist Intelligence Unit.  In that article you will read about the “Black Rules for Success,” from other successful Black/African American survey respondents.

Part 1:  The Narrative

Part 2:  The Pictorial Slideshow of How Black People Spend Their Money

Warning:  The following is a link to a long article with a lot of details, numbers, observations and opinions covering over two decades of information and data.  A large portion of the data was gathered before COVID-19.

Click Here To Read The Entire Updated “How Do Black People Spend Their Money?”

How black people spend their money has been a hotly debated topic not only on this site, but in our office, at social events and in beauty and barber shops across America.  This article has been the most read and commented article for 12 years running.  Once I learned that this was the most popular and discussed article on the website, I decided to do some research and share this information with others.

Click Here To Read The Entire Updated “How Do Black People Spend Their Money?”

Let’s start by watching this short video that explains the “racial wealth gap” in America.

Check out this 1954 film made to educate white merchants on the spending habits of Black Americans.

The Secret of Selling the Negro Market is a 1954 film financed by Johnson Publishing Company, the publisher of Ebony magazine, to encourage advertisers to promote their products and services in the African-American media. The film showed African-American professionals, housewives and students as participants in the American consumer society, and it emphasized the economic power of this demographic community. The film, which was shot in Kodachrome Color, featured appearances by Sinclair Weeks, Secretary of the U.S. Department of Commerce, and radio announcer Robert Trout. The film had its premiere in July 1954 at the Joseph Schlitz Brewing Company in Milwaukee, Wisconsin, and was shown on a non-theatrical basis.

Watch this film and measure how far we’ve come over the last 60+ years.

Click Here To Read The Entire Updated Article

The series of articles and versions of “How Do Black People Spend Their Money?” contain opinions from outside sources not affiliated with Black Men In America.com.  This series is for information and educational purposes only. The opinions and views expressed do not necessarily reflect the opinions and views of Gary Johnson, Black Men In America.com or any of its affiliates.

Gary is the Founder and Publisher of Black Men In America.com, an online news and magazine, Black Boating and Yachting.com and several other online sites.  Gary is also the author of the book “25 Things That Really Matter In Life,”:  A Quick and Comprehensive Guide To Making Your Life Better—Today! and “The Black Father Perspective: What We Want America To Know,” and “In Search of Fatherhood – Transcending Boundaries: International Conversations on Fatherhood.“  In 2019, Gary developed a line of spices under the name of “MasterChef Gary’s Premium Organic Seasoning.”  In 2021, Gary launched a motivational website and talk show called “Calculations.“  For motivational content and exclusive interviews with interesting people, visit Calculations Talk Show.com.  In his spare time, Gary uses his platform to help the Black Farmers of America.  He built the website Justice for Black Farmers to help educate others about the plight of the Black Farmer and their fight against the U.S. Department of Agriculture.

Click Here To Read The Entire Updated “How Do Black People Spend Their Money?”

Barackonomics – Are You Cashing In?

Blackonomics

By:  James Clingman

There was Reaganomics in the 1980’s, and some of us had the Reaganomic Blues during that time.  Old Ronnie ushered in a period of economic empowerment, for some, that is still remembered, by some, as the best ever.  To this day, the “Conservatives” are making every attempt to reincarnate the Great Communicator, by holding séances otherwise known as political debates, like the one we saw held at the Reagan Library in Simi Valley, California, during the Republican primary.  Those folks love themselves some Ronald Reagan – and they loved Reagonomics.

Now we have Barackonomics.  No, we have not seen the result of Obama’s economic policies yet, but the current environment is rife with excitement, anticipation, and “hope” for the “change” millions voted to see.  We will soon find out what the big picture holds, but even prior to the election, Obamania ushered in a new language, a new zeal for politics, and a new economic arrangement for Black folks, the likes of which I have never seen.

Always watching for the economic advantages available to Black people, during the campaign I saw hordes of brothers and sisters making money.  Although it was reported that the lion’s share of the $650 million or so raised by the campaign flowed into the dominant media outlets, Black owned media receiving very few of those party favors, some of our more enterprising Black entrepreneurs managed to hitch a ride on the Obama gravy train.

I attended one of the Obama rallies held at the University of Cincinnati, during which I saw Black vendors – as matter of fact, I saw only Black vendors selling everything from Obama Action Figures, to Obama Bobble-Head Dolls, to glow-in-the-dark thingamabobs, to placards, buttons, glasses, cups, banners, and T-shirts of all designs and themes.  Barack should have copyrighted his name and image.

My old friend and world renowned painter, Gilbert Young, called me to announce his latest creation: a painting of Barack Obama that Obama himself signed and endorsed.  The painting is titled, “History + Hope = Change” (www.historyhopechange.com).  Now you know there will be bushels of money made from that painting.  And, as they say, “It’s all good!”

I can’t recall seeing Black vendors selling Reagan items, or those of the other 42 Presidents for that matter; no, not even Clinton and Kennedy.  (I wonder if Gilbert Young did a painting of Reagan; just kidding, Gilbert.)  So I was encouraged to see so many Black folks cashing in on Barackonomics, at least as long as the phenomenon lasts.  It’s about time.

It’s good to see Black folks finally getting in on the economic side of politics, especially the folks at the bottom of the heap.  Yes, big business got its share, as it always does; the television companies and their affiliates, newspapers, radio stations, and the major marketing and advertising firms received a windfall from the Obama campaign.  But, finally, thousands and maybe even millions of brothers and sisters got in on the act as well.

My advice is for them to stay with Barackonomics as long as they can.  Come up with new ideas, new products, and new services to sell.  The ICE Supreme Man (www.icesupreme.com), Ashiki Taylor, in Atlanta, has created a new flavor “Obama Medley;” Farley’s Coffee (www.farleyscoffeeinc.com) Executives, Raymond Wilford and Ricky Tillman have developed an The 1^st Family House Blend gourmet coffee featuring coffee from Kenya.  I am sure there are hundreds of other enterprising Black folks across the country who are making money via Barackonomics, and I see no problem with that.

I do see a problem with Black folks just settling for the moment, however. We had better get a good understanding of the fact that economics runs politics, and this time is no different from all the other presidential elections when it comes to economics.  Let’s not merely live for the moment and then go back to sleep in the next couple of months.  Let’s take the small lessons of Barackonomics and do big things with them.  Let’s support one another with the knowledge that there is enough, more than enough, to go around.

Don’t back off now; raise the bar even higher.  Be creative and innovative; devise new entrepreneurial ventures and strategies to capitalize on Barackonomics.  You can’t pay your bills with hope, history, or hysteria.  Emotional investments do not pay dividends.  Euphoria is not bankable.  Inspiration that is not followed by perspiration – taking some action, doing some work – will be as fleeting as a shooting star.  If we don’t turn, “Yes we can!” into, “Yes we did!” beyond the election, beyond the inauguration, and beyond the parties, then shame on us.

Allow your inspiration to catapult you to collective economic empowerment by establishing equity funds, bartering groups, urban gardens, food cooperatives, rotating credit associations, small business associations, cooperative purchasing programs, youth entrepreneurial training programs, and all of the entities we need to survive and thrive in this dire economic environment.  If we do these things, and more, we will have justified our emotional euphoric response to Barack Obama being the 44^th President of the Untied States.  If we fail to do these things, we will miss out on the economic benefits that always find their way to the “special interests.”  Aren’t we special?  Don’t we have our own interests?

You had better believe the “big guys” will capitalize on their investment in Barack Obama.  Question is: “Will we?”  Let’s understand that part of the “change” we voted for is grounded in economics, at least I “hope” it was.  And let’s commit that the “change” we receive will be much more than mere “chump change.”

COLLECT A PIECE OF HISTORY! Order your EXCLUSIVE OBAMA “1st FAMILY HOUSE BLEND.”  Farley’s Coffee, Inc., The Coffee With a Classic Taste is proud to offer this special gourmet Kenyan blend in honor of the new future President of the United States of America. Help celebrate this historical moment in welcoming the new first family to The White House.  LIMITED TIME OFFER!

You can learn more about James Clingman and buy his books by visiting his web site Blackonomic$.  Click here to go there now.