African Americans and Hispanics are the fastest-growing ethnic groups in the United States of America, yet they are also the least financially literate. In a 2013 study, about 21% of African Americans were found to be unbanked (without a checking or savings account) and 20% of Hispanics were found to be unbanked.
Why are people remaining unbanked?
- Lack of trust in the government and financial institution
- Lack of knowledge
- Fears and beliefs of paying high-interest rates from banks
- Do not see the point when they can pay cash
Unfortunately, today the world is becoming more cashless as some stores will not accept cash. I remember trying to buy a smoothie in New York and I attempted to make my payment with cash where I received a, “sorry we do not accept cash here.” What followed was a slow walk of shame out of that store. In this situation, I had lost my inclusion in this trade because I did not have my debit card.
History continues to play a role in why some African Americans chose to remain unbanked. (discussed in another article)
Without a bank account, it is difficult to save money and plan for retirement.
Education is therefore important to change these perspectives.
gendollar.finance.blog 