$631 Billion: Blacks make it but spend more

In 2002, Blacks in America made $631 billion dollars. This alone shows us that black America has money to do great things.

In 2002, Blacks in America made $631 billion dollars. This alone shows us that black America has money to do great things. The downfall to this is how blacks spend their income. Target Market is a company that tracks black consumer spending. In their reports, they found that blacks spend a significant amount of their income on depreciable products. For example, Detroit is 80% black and is the world’s No.1 market for Cognac. Blacks tend to spend more money on things that will lose value when purchased. Things like clothes and electronics, in 2002 blacks spent over $25 billion in these two markets. What does Black America need to learn and do about it’s spending?

Black America needs to understand the importance of saving; delayed gratification is something blacks need to embrace more. Homeownership is an issue that Black America needs to reshape. In 2002 fewer than 50% of blacks owned homes, while more than 70% of whites were homeowners. Another area of spending that Black America needs to increase is that of books. In 2000, blacks spent $356 on books and in 2002 that decreased to $303. Learning outside of the classroom is something that Black America needs to value more. It is important for blacks to attend college and receive degrees but it is as important for blacks to gain knowledge on their own through books they purchase. The things you learn on your own will stay with you more so than things that are taught in classrooms.

All of this information is important to Black America. The black community needs to understand the power that it has. Many marketers direct their campaigns toward the black community because they know blacks will spend more money than they will save. Once Black America understands the power that the Black Dollar holds it will be able to shape a better future for its communities and the people within it.