More Black Americans report pandemic has permanently changed their spending and saving habits

Written on Feb 16, 2021

The pandemic continues to create financial challenges for all Americans, but research from Lincoln Financial Group shows that minorities are among those hit hardest. The company’s October 2020 Consumer Sentiment Tracker found Black consumers (32%) are most likely to have experienced job loss as a result of the pandemic – a situation that inevitably contributes to their top financial concerns of not having enough emergency savings (42%) and not being able to cover day-to-day expenses (41%).

Black Americans went on to express their current financial mindset is most impacted by the events of recent months. According to the research, 74% are planning to make permanent changes to the way they spend and save due to the COVID-19 crisis. Furthermore, 75% are planning for their financial future differently as a result of the pandemic, prompting a growing appetite for financial planning resources. Black consumers (67%) are most likely to say they are reading and learning about financial markets and investing, as well as thinking about whether they have the right insurance (61%). 

The study went on to show that Black consumers express the most positive feelings—hopeful (28%), interested (22%) and opportunistic (17%)—when it comes to financial planning. They prefer to learn about financial products by seeking out advice from a financial professional (39%) followed by financial services companies (28%).