Fidelity recently conducted research on the financial health and outlook of Americans, paying special attention to the nuances in responses between all respondents and those in specific communities, including the Black community.
Our research findings were positive: 76% of Black Americans believe they’ll be in a better place in 2024 than they were in 2023 (vs. 66% of all respondents), and 2023 was already an improvement from 2022, with 41% of Black Americans saying they were in a better financial situation this past year (vs. 31% of all Americans).
Here are other trends we saw specific to how Black Americans are viewing their financial health and opportunities for financial mobility.
An Appetite to Learn & Earn
When setting New Years resolutions, Black Americans are more likely to seek out educational opportunities for self-betterment (54%) than the national average (40%). This increased focus on education was up 17% from last year.
Black respondents are more likely to seek out new skills to develop professionally or shift a career path (15% vs. 11% of all respondents).
Black Americans also plan to find additional sources of income (74% vs. 62% of all respondents). And if financial challenges arise, they’re far more likely to start a side hustle (39% vs. 29%) or pick up a second job (29% vs. 22%).
A Focus on the Now
Black Americans are more focused on enjoying life today than saving for their future. Black Americans are more likely to say that 2024 will be the year of living for today (19% vs. 14% of all respondents) and are less likely to say they’ll live practically this year (11% vs. 20% of all respondents). Black Americans are more likely to spend money on retail therapy (16% vs. 10% of all respondents).
Black Americans are also more likely to put emphasis on their quality of life. In resolution setting for 2024, Black Americans are more likely to prioritize goals related to their mental health (63% vs. 54% of all respondents) and general well-being (75% vs. 70% of all respondents).
For many Black Americans, the research found they are less worried about having a comfortable retirement (30% vs. 37% of all respondents). Even so, Black Americans were more likely to say that they plan to increase annual retirement savings this year (50% vs. 42% of all Americans) and were more apt to create a financial plan in 2024 (19% vs. 14% of all respondents.)
Staying Social
Black Americans are more likely to get financial resolution inspiration from social media/influencers (24% vs. 18% of all Americans). We also found that those same social networks keep them accountable towards their goals (22% vs. 10% of all respondents). Because of its positive impact, it’s not surprising that Black Americans are less resolved to limit their screen time or spend less time on social media in 2024.
With the majority (7-in-10) of Black Americans considering a financial resolution for 2024, combined with the importance of influencers in financial education, Fidelity will host a webinar with our Black Community Lead, a Fidelity workplace consultant, and social influencer Tiffany "The Budgetnista" Aliche on Thursday, Feb. 15 at 2pm ET. It’s open to the public—you may register for this event here, and find additional resources for Black investors here.
Fidelity uses these findings to ensure that our products, services, experience, and educational tools are relevant and align with the needs, priorities, and preferences of customers from all backgrounds. “Each year, our current and potential customers are more diverse”, says Ogor Chukudebelu, Head of Fidelity’s Customer Inclusion Team. “Our role is to ensure that Fidelity’s products and services provide financial education and mobility opportunities to all, not just some.”
Black History Month is a time to recognize and reflect on the lived experiences of Black Americans. Fidelity is proud of its commitment to provide diverse and inclusive experiences to all, including its associates, customers, communities, and the next generation.
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All datapoints cited are from Fidelity’s New Year’s Financial Resolutions Study
About Fidelity Investments’ 15th Annual New Year’s Financial Resolutions Study
This study presents the findings of a national online survey, consisting of 3,002 adults, 18 years of age and older. The generations are defined as: Seniors (78+)(78 respondents) Baby Boomers (ages 58-76) (758 respondents) , Gen X (ages 42-57) (683 respondents), Millennials (ages 26-41)(1,015 respondents), and Gen Z (ages 18-25)(468 respondents); although this generation has a wider range, we only surveyed adults for the purposes of this survey. Young is defined as those ages 18-35. Interviewing for this CARAVAN® Survey was conducted October 20-29, 2023 by Big Village, which is not affiliated with Fidelity Investments. The results of this survey may not be representative of all adults meeting the same criteria as those surveyed for this study. Go here for more information on Fidelity’s 2024 New Year’s Financial Resolutions Study.
About Fidelity Investments
Fidelity’s mission is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses we serve. With assets under administration of $11.5 trillion, including discretionary assets of $4.4 trillion as of September 30, 2023, we focus on meeting the unique needs of a diverse set of customers. Privately held for 77 years, Fidelity employs over 73,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.