Financial literacy and the impact in the African American community

Members of the African American community tend to be inadequately educated in personal financial scenarios. This problem influences personal indebtedness and financial crises later in life. Research suggests that with proper education African Americans will be able to make more informed financial choices that help individuals and their entire community. The purpose of this phenomenological study was to understand African Americans’ perception of financial literacy. This study was conducted to examine the financial literacy of African Americans. Snowball sampling and purposive sampling were used to find 11 African Americans from Akron, Ohio, who had had no financial education courses and unmanageable debt. Research questions addressed how African American consumers define financial education, the extent to which financial education is available to African American consumers, how well-equipped African Americans are to make financial decisions, the determinants of financial illiteracy among African Americans, and how this information can aid educators to incorporate financial education into their classroom. Results suggested a need for financial literacy or financial education in Akron, Ohio stemming from the negative effects of unemployment, low wage employment, medical conditions, divorces, and lack of financial education. If individuals do not invest in a financial education course, they may continue to make poor financial decisions that could affect them for the rest of their lives