Not having much money isn't really a factor for why blacks refrain from seeking financial advice. A recent study by Prudential Financial Inc., concluded that most African-Americans typically don't get help from financial advisors because they lack knowledge and simply don't trust them.
The survey — which polled 1,500 African Americans with incomes of $25,000 or more — asked participants, "if any financial services company effectively engaged and show support for the Black Community?” Seventy-eight percent of surveyors said no. “I thought we were making progress, but this survey shows we are not,” said Mark Hug, Prudential’s vice president and chief marketing officer for individual life insurance agency distribution. Hug added that the financial services industry needs to do a better job of connecting with local communities and providing support.
African-Americans have been struggling with financial literacy for centuries so these findings are no great surprise. The 2008 economic downfall on Wall Street didn’t exactly improve our outlook on the financial business sector either. If companies like Prudential want to see an increase in African-American investments, then they need to show an investment in our knowledge of financial matters in general.
Read more at OnWallStreet.