Practical Applications of Factors Contributing to Financial Well-Being among Black and Hispanic Women

Abstract

In <b>Factors Contributing to Financial Well-Being among Black and Hispanic Women</b>, from the Summer 2021 issue of <b><i>The Journal of Retirement,</i></b> authors <b>Robert Clark</b> (of <b>North Carolina State University</b>), <b>Annamaria Lusardi</b> (of <b>George Washington University</b>), <b>Olivia S. Mitchell</b> (of the <b>University of Pennsylvania</b>), and <b>Hallie Davis</b> (of <b>George Washington University</b>) analyze data on women’s self-reported financial well-being (FWB), plus objective data on their financial circumstances. They find that Black and Hispanic women are more likely to have lower income, to be single, and to have dependent children. Researchers associate these factors with lower FWB—but surprisingly, Black and Hispanic women report slightly higher average FWB than White women. This may stem from factors like culture and family structure. Black and Hispanic women may have a greater sense of financial well-being because they expect their extended family or grown children to support them after a job loss or during retirement. White women, however, experience greater FWB when they become financially literate. The authors conclude that a one-size-fits-all approach to financial education does not work for women. Financial advisors can help their female clients with targeted education tailored to their identified needs.