Filed Under:Markets, Diversity Market

Multiple Cultures, Multiple Financial Needs

A new study highlights the areas where various cultures differ in their financial preparedness.

While many factors in the financial landscape may be in flux from day to day, one long-term trend is certain: America’s multicultural population is growing rapidly, presenting life insurance producers with an historic business opportunity. According to the U.S. Census Bureau, by 2050, non-Hispanic whites will no longer be the nation’s majority population. Between now and then, Hispanic and Asian populations are expected to double, and the African-American population is expected to remain stable.

Despite this opportunity, however, many life insurance producers are cautious. They understand the need to take action to ensure the future of their business. But they’re not clear on what steps to take and how to avoid making errors that may alienate the very multicultural prospects they’re trying to attract.

Financial Information: The study found non-whites were more likely than whites to use the Internet and media to gather investment information and guidance. African-Americans (54%), Asians (53%) and Hispanics (50%) pointed to the media and Internet as primary sources for financial information and guidance. Just 45% of white respondents showed that same preference. By contrast, 31% of whites reported that they were working with a financial professional currently, which was more than Hispanics (19%), African-Americans (20%), or Asians (22%).

Barriers to Saving: Nearly 3 in 4 respondents (73%) said they were encountering barriers to saving, but the specifics about those barriers differed from group to group. For nearly all groups, insufficient income was the biggest barrier to savings. Hispanics and Asians were more likely than whites and African-Americans to say they need to know more about their savings options. African-Americans were more likely than other groups to say debt was their biggest barrier. Asians were least likely to have a savings barrier.

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Nichole Morford

Nichole Morford
Managing Editor

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