To manage your finances, a sound, effective and thorough, understanding of finance, we call financial literacy is crucial. People should know how to manage their debts and save money. African Americans play a vital role in the economic establishment of the United States, but in comparison to their white counterparts, they still lag in financial wellness. Financial literacy is one of the main reasons behind this complex gap. Financial literacy and financial wellness are tightly intertwined, especially in African Americans.
One of the latest studies on the Personal Finance Index (P-Fin Index) conducted by GFLEC and TIAA institute provides new insights on Black financial literacy.
There are eight areas on which P-Fin Index study is based:
Only 38% of the answers were correct by African Americans compared to 55% of white people.