Table 3 Profiles The Economic And Demographic Factors That

In regards to my current life stage, I am a young adult and almost all of my financial income is paid in wage from my occupation as a lifeguard. As I am not a parent of any kids, my financial expenses consist of paying for food, clothing, transportation, and school fees. Therefore, most of my expenses are centered around myself and focuses on future career plans to eventually increase my income as I will be able to attain a profession after acquiring a college education. Presently, I have not surrounded myself with assets because I have not acquired my college degree or decided upon a profession; as a result, I would not be able to search for appropriate assets.

When it comes to the data and methods, this study used the Federal Reserve Board’s Survey of Consumer Finances (SCF), which is a repeated survey that includes the information on household income and wealth holdings; the Federal Reserve conducts this survey every three years. To test the hypothesis there are

The equitable wealth disproportion between African Americans and Whites is still on the rise. Researchers have identified systematic barriers affecting the ability for African Americans to accumulate wealth. In addition, researchers indicate several possible factors such as, less intergenerational inheritance, higher unemployment and lower incomes (Desilver, D, 2013). Impoverished generations have been unable to escape their restricted economic condition. Whites have gained an economic opportunity for every unfavorable condition that has impeded African Americans economic opportunity over time forging grounds for economic disparity. Because of unfavorable conditions due to the effects of slavery, generations of African Americans have had to bear racism and inequality. According to Pew Research the median household income of a family of three in 2011 was $39, 760 for African Americans in whereas White American Family median household income is $67, 175 a household income difference of $27, 000 (Morin, R

Housing and home ownership in the United States have continued to increase among different races even though it was hit by the great recession period. The wealth of white households was 13 times the median wealth of black households in 2013. This is an increase when compared to

According to a study by Philliber (1977), “As the United States emerged from the Great Depression with a revitalized economy, Americans boasted of an unprecedented standard of living extended to an increasing but already very large proportion of citizens” (p. 375). This increase in standards of living proved good for the economy as businesses flourished with consumers drive to purchase new things. Philliber did a study to explain this in reference to how African-Americans perceived affluence, and the findings of Philliber’s study suggested that because blacks are not in the socio-economic level in regards to education or income, they perceive greater affluence in America (Philliber, 1977, p. 379). This is mainly because they have been turned down by a number of opportunities because of their race believing that the affluence was left only to the whites in the country. To compete with this and achieve a personal level of affluence, African-Americans would spend more money on things that would display affluence, such as cars and other things. Without having the same economic status to maintain these items, credit debt was often the result. Without the education or income necessary to maintain such a lifestyle, it became apparent that this drive and aspiration for affluence left a negative impact in the economy and African-American

“Families of color will soon make up a majority of the population, but most continue to fall behind white in building wealth” (Nine Charts about Wealth Inequaliy in America, 2015). Comparing in 1963 and 2013, 1963 average wealth of whites was $117,000 versus in 2013 the average was $500,000 or higher. The racial wealth gap grows sharply with age. White families tend to earn more wealth within their lifetime than an African American or Hispanic. In their 30’s, the average for white families is $140,000 more than an African American families or Hispanics. By the time they are in their 60’s, they have earned more than $1 million. Even though the median wealth by race is lower, the dollar gap grows age, the ratio doesn’t grow the same way. The whites have earned seven times more median than African Americans between their 30’s and

Envision feeling cold, starved, petrified, and alone, just getting home to find an eviction notice, perhaps a letter of foreclosure hanging from the door. As the room goes grey and begins to spin, four words begin to echo in the background, “Is this really happening?” All resources are exhausted and Social Security proves ineffective. Fear has taken over. Thoughts of life in a shelter cloud the room. The bills are piling high, as bank accounts begin to dwindle. Unfortunately, this is the harsh certainty of many people in the aging community. Retirement is a critical life event that everyone has to undergo, through being unprepared, many fall victim to poverty in old age. Individuals should utilize Individual Retirement Accounts,

The Baby-Boom generation is nearing retirement and it is clear that millions of aging Boomers are financially under prepared. Reasons are many - poor savings habits, rising medical costs, the demise of guaranteed corporate pensions, and the dreaded squeeze faced by many: i.e. having to pay college costs for their children, care for their elderly parents, and save for retirement, all at the same time.

The youth unemployment rate for African Americans is almost doubled compared to the youth unemployment rate for white Americans. This makes it that much more harder for black Americans to find sources of repayment since white Americans are able to get jobs easier. According to Adams, the average African American graduates with roughly 30,000 dollars worth of student loan debt (Adams 1). As the younger generation of blacks leave college with student loan debt that they are unable to payback, their ability to become homeowners and their ability to increase their wealth has diminished. Charlene Crowell explains, “The domino effect of debt begins with a student loan and then delays the ability to qualify for a mortgage…the ability to gain wealth is limited if not stymied”. The domino effect is the main reason the majority of the black community is unable to reach the middle class. A college graduate in debt and not having the ability to pay their loans off in time because no jobs are available is the scenario for many blacks causing them to experience poverty. Julie Margetta Morgan says, “With high unemployment and underemployment and so few options for dealing with debt, it should come as no surprise that the delinquency rate on student loans is so high” (Morgan). The below average economic state of the United States doesn’t give African Americans the ability to successfully pay their debt back on time.

According to the US Census Bureau, as of July 1, 2015 the estimated population of the United States was 321.4 million. Of this number, the percentage of people who identified as Black or African American alone was 13.2 percent. There were no estimates for people who identified as Black or African American in combination with one or more additional races. (Population). According to the 2010 U.S. Census, on April 1, 2010 the U.S. population was 308.7 million and out of that number, 13 percent or 38.9 million people identified as Black or African American alone and one percent or 3.1 million people identified as Black or African American in combination with one or more additional races. These two groups combined total 42.0 million, or 14 percent

According to U.S Department of Commerce, in 2008 a household of 2 combine incomes was increasingly better and well of that than a 1 household income. Consequently, income inequalities before 1950 was just as bad as it is now. In 2008, a married couple’s median income consisted approximately around 50,303, while a single parent’s median income was 4 percent less of their counterparts. It is important to note that two-parent household income matter as much as they used to. Together, a two-parent household income can provide an opportunity to be stress free from the burden of paying bills and having enough money left over for the rest of the week, also, a two-parent household income allows for the chance to put money into a saving account, and lastly, a two-parent household income creates an environment where both parents can spend more time with their children.

In the study, “Easy Money or Hard Times? Health and 401(k) Loans”, Weller and Wenger (2012) examined whether health status and health insurance coverage could predict the likelihood of having a defined contribution (DC) loan using data from the Federal Reserve’s triennial Survey of Consumer Finances from 1989 to 2007. The SCF provided detailed information on household assets and debts, including DC loans. The analysis focused on households between the ages of 25 and 64. The data are all survey based with households as the unit of analysis. All demographic characteristics, such as educational level, race, and age refer to the

In the coming decade, over 20 percent of the national population will reach the age of retirement. Not to mention, many studies have shown that numerous baby boomers are not financially prepared for retirement. A survey taken place in 2015 with 12,000 Canadians showed that 49 percent of people aged 55 to 64 had saved less than 10 percent of their savings target for retirement to date. In addition, there will be a decline in workplace pension plans due to the aging baby boomers which means that only 24 percent of private sector workers are funded through the pension plan. This indicates the importance of baby boomers to finance their retirement. On the other hand, the current low interest rates are making it more difficult for the boomers to save for retirement. The result will undoubtedly have many boomers maintaining a steady life or cause suffering to many others living a lower standard of living. In conclusion, the pre-retirement baby boomers cannot fully reply on the government for financial support and should think about their future financial state if they want it to resemble their current

Not only that, but many parents are postponing their retirement because they are helping their young adult children with their debts, studies or their housing. This can be very costly for the parents since they oftentimes have to worry about their own future and the costly expenses that come with retirement, and to provide for their kids who are currently relying on their support. This situation is even worse if the parents are a part of the sandwich

With the workforce in America decreasing due to hard economic times, there is no guarantee the money put into the reserve will sufficiently support a generation when it is time for retirement. Depending on Social Security to support a person financially when ready to retire, will leave that individual in even more of a struggle than the beneficiaries trying to survive in these earlier years of the 21 century. Social Security benefits represent about 41% of the income of the elderly; if there is not enough to support even half of the elderly’s financial needs now, there is no reason a younger person should depend on it alone for retirement (Dewitt, 2010) in the future.