Multicultural America: Financial Outlook and Building Wealth Consumer Report 2024
£ 3,695 (Excl.Tax)
Report Summary
The last five years has brought both hardship and opportunity to multicultural consumers. In addition to its human toll, COVID led to disproportionate job loss, followed by high inflation. The Black Lives Matter movement, AAPI hate and anti-immigration sentiment also deeply impacted many. These consumers have persevered throughout it all, with Black consumers emerging as particularly positive, with a high share consistently believing their circumstances are improving. Meanwhile, Asian consumers – as a whole the most educated and affluent – seem the most negative about their current jobs and prospects, likely due in part to tech layoffs that have strongly impacted this group. Many LGBTQ+ consumers are also struggling in the face of significant pay gaps and workplace discrimination.
Helping multicultural consumers accomplish their goals and dreams will mean meeting them where they are. For Hispanic consumers, that may involve supporting entrepreneurship; for Black consumers, creating strategies to cope with significant educational debt; for LGBTQ+ consumers, embracing families that may not look like traditional ones. And for all consumers – but particularly Asians – financial planners will need to help drive resilience in a world where careers no longer follow a linear path and everyone must be prepared for change.
This report looks at the following areas:
- Key demographics for multicultural adults, including age, income and employment
- Drivers for building wealth such as educational achievement, retirement savings and expected inheritance
- Current employment status and attitudes regarding work
- Approaches used to build wealth
- Competitive strategies financial firms are using to connect with multicultural consumers
- Opportunities to help multicultural consumers achieve their financial goals
This Report focuses on multicultural adult consumers’ attitudes and behaviors toward their personal finances, employment and building wealth. For the purposes of this Report, “multicultural” refers to adults who identify as Asian/Pacific Islander, Black, Hispanic, or from an unspecified racial or ethnic group (denoted as “other”).
Post-COVID financial turmoil has combined with historic issues to make achieving financial success more complex than ever for multicultural consumers.
Fiona O'Donnell, Senior Director – Lifestyles, Culture & Identity, Multicultural, Travel & Leisure
Market Definitions
This Report covers multicultural American consumers’ behaviors and attitudes toward their finances, employment outlook and approach to wealth building. For the purposes of this Report, “multicultural” refers to adults who identify as Asian/Pacific Islander, Black, Hispanic, or from an unspecified racial or ethnic group (denoted as “other”). White consumers are also included in the research.
Table of Contents
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Executive Summary
- What you need to know
- What consumers want and why
- Market predictions
- Opportunities
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Multicultural America: An Overview
- A nation that is becoming increasingly diverse
- Not a monolith
- Hispanic, Black and Other race populations skew younger
- Graph 1: distribution of generations, by race/Hispanic origin, 2023
- Family households most prevalent among Asian and Hispanic consumers
- Graph 2: households – family vs non-family type, by race/Hispanic origin, 2021
- Graph 3: households – family vs non-family – detailed type, by race/Hispanic origin, 2021
- Significant financial inequities across groups
- On average, Black and Hispanic households lag in income
- Graph 4: median household income ($), by race/Hispanic origin of householder, 2022
- A diverse range of incomes within each group
- Graph 5: household income distribution, by race/Hispanic origin, 2022
- Wealth gap even greater than income gap
- Graph 6: median wealth ($), by race/Hispanic origin, 2021
- An LGBTQ+ pay gap
- Graph 7: pay gap for LGBTQ+ workers – average cents on the dollar, by race/Hispanic origin, 2021
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Market Dynamics
- Market context
- Healthy 3.0% expansion seen in Q2 2024
- Graph 8: quarterly real GDP growth, 2020-24
- Inflation has continued to decline throughout 2024
- Graph 9: headline CPI and shelter CPI, 2021-24
- Consumer sentiment remains down, but is expected to improve
- Graph 10: consumer sentiment index, 2022-24
- Unemployment remains low, but is slowly ticking up
- Graph 11: unemployment rate, by race/Hispanic origin, 2019-24
- Tech industry corrects in 2023
- Graph 12: tech industry employee lay-offs, 2022-24*
- Median wages continue to rise
- Graph 13: median weekly earnings for full-time workers, 2020-24
- Market drivers
- Discrimination persists in the financial system
- Graph 14: share of unbanked and underbanked households, by race/Hispanic origin, 2021
- Homeownership is increasingly elusive
- Graph 15: homeownership rate, by race/Hispanic origin of householder, 2011-21
- Distinct occupational trends by race
- Graph 16: occupation, by race/Hispanic origin, 2023
- Tech and energy sectors are common employers
- Graph 17: primary industry of employment, by race/Hispanic origin, 2024
- Complex trends around education
- Higher education most common for Asians, least common for Hispanics
- Graph 18: education completed by persons 25 and older, by race/Hispanic origin, 2021
- White students borrow the least for higher education
- Black students least likely to graduate in four years
- Graph 19: years to graduate college, by race/Hispanic origin – first-time students entering school in 2010
- Women take the lead in higher education
- Graph 20: college graduates, by gender and race/Hispanic origin, 2021
- Black women are beginning to take the lead as breadwinners for their families, driven by greater educational attainment
- Educational attainment of Black Millennials
- Retirement challenges for Hispanic, multicultural consumers
- Hispanics lag significantly in retirement wealth
- Graph 21: median retirement wealth ($ thousands), by race/Hispanic origin, 2022
- Limited access to employer plans for Hispanic, multicultural consumers
- Graph 22: retirement plan participation and contribution, by race/Hispanic origin, 2022
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Consumer Insights
- Consumer fast facts
- Assessment of current and future finances
- White consumers most content with current financial situation
- Graph 23: current financial situation, by race/Hispanic origin, 2024
- Black consumers are most likely to feel they have experienced positive change
- Graph 24: change in financial situation over the past 12 months, by race/Hispanic origin, 2024
- Black consumers consistently feel their situation is improving
- Graph 25: change in financial situation over the past 12 months (any better off), by race/Hispanic origin, 2022-24
- LGBTQ+ more likely to feel they are struggling
- Graph 26: current financial situation, change over past 12 months, expectations for next 12 months, by LGBTQ+ vs non-LGBTQ+, 2024
- Other/multiracial consumers expect to see change – of both kinds
- Graph 27: expected change in financial situation over the next 12 months, by race/Hispanic origin, 2024
- Optimism runs deep for Black consumers
- Graph 28: expected change in financial situation over the next 12 months (any better off), by race/Hispanic origin, 2022-24
- The pandemic continues to weigh on women, Hispanic consumerss
- Graph 29: "The economy is worse off now than before the pandemic" (any agree), by select demographics, 2024
- Impact of current events
- Older consumers generally more concerned about financial impact of election, especially taxes
- Graph 30: attitudes toward election impact on finances (any agree), by age, 2024
- Older consumers generally more concerned about financial impact of election, especially taxes
- Graph 31: attitudes toward election impact on finances (any agree), by race/Hispanic origin and aged 18-44, 2024
- Graph 32: attitudes toward election impact on finances (any agree), by race/Hispanic origin and aged 45+, 2024
- Help women to navigate post-election changes
- Graph 33: attitudes toward election impact on finances (any agree), by race/Hispanic origin and female, 2024
- Relate to younger consumers with sustainability efforts and planning around weather events
- Graph 34: attitudes toward concerns about environment and finances (any agree), by race/Hispanic origin and aged 18-44, 2024
- Reassure Asian parents and homebuyers with disaster preparedness
- Graph 35: attitudes toward oncerns about environment and finances (any agree), by race/Hispanic origin and parent*, 2024
- Asian consumers over-index for homeownership in areas that have experienced natural disasters, making climate impact a greater concern
- Address inequity to appeal to older Black consumers
- Graph 36: attitudes toward economic inequality (any agree), by race/Hispanic origin and aged 45+ , 2024
- The Birwood Wall | Home. Made. Podcast S3 E1 | Detroit Housing Segregation and Racism
- Ways to build wealth
- Few consumers focus on investing
- Graph 37: ways of building wealth, 2024
- Asian, Non-Hispanic and White, Non-Hispanic consumers are the most likely to own stocks
- Black and Hispanic consumers are the most entrepreneurial and likely to have a second job
- Graph 38: ways of building wealth, by race/Hispanic origin, 2024
- The FIRE this time?
- Younger consumers and men significantly less likely to focus on saving
- Graph 39: ways of building wealth – save and budget, by race/Hispanic origin, gender and age, 2024
- Multiple income streams are more prevalent among affluent Black, Hispanic and other race consumers
- Graph 40: ways of building wealth – select items, by race/HIspanic origin and HH income $75K+, 2024
- Men more open to investing
- Graph 41: ways of building wealth – investing, by race/HIspanic origin and male, 2024
- Financial institutions have bridges to build
- Graph 42: attitudes toward financial institutions (any agree), by race/Hispanic origin, 2024
- Older multicultural consumers are less trusting of financial institutions
- Graph 43: attitudes toward financial institutions (any agree), by race/Hispanic origin and aged 45+, 2024
- Attitudes toward wealth
- Most believe in the benefits of hard work
- Lower-income, older Black consumers less likely to believe hard work is rewarded
- Graph 44: "If I work hard, I can get ahead and achieve success" (any agree), by race/Hispanic origin and key demographics, 2024
- More than work matters for Black and Hispanic consumers
- Graph 45: self-perceptions, by race/Hispanic origin, 2024
- White, Hispanic consumers most open about finances
- Graph 46: attitudes toward comfort discussing finances (any agree), by race/Hispanic origin, 2024
- Employment status and satisfaction
- "Side hustles" help many
- Graph 47: number of work-based income sources, by race/Hispanic origin, 2024
- About two-thirds of working adults are satisfied with their current job
- Graph 48: employment satisfaction, by race/Hispanic origin, 2024
- Men, more affluent consumers like their jobs
- Differences in job satisfaction seen by gender, income
- Graph 49: "I am satisfied with my current job and do not plan seek alternative employment," by race/Hispanic origin and key demographics, 2024
- Job seekers are optimistic – perhaps overly so?
- Employment attitudes
- Help build financial resilience in the face of job fears
- Graph 50: attitudes toward employment security (any agree), 2024
- Security messaging is particularly relevant for Asian workers
- Graph 51: Asian workers' attitudes toward employment security (any agree), by key demographics, 2024
- High level of confidence in skills
- Hispanic workers feel they are a good fit for their jobs
- Graph 52: employment – work alignment with qualifications/skills, by race/Hispanic origin, 2024
- Graph 53: employment – confidence in skills/experience, by race/Hispanic origin, 2024
- Asians most likely to feel their employers don't value them
- Graph 54: employment – valued by employer, by race/Hispanic origin, 2024
- Relatively few workers describe experiencing discrimination
- Graph 55: employment – discrimination at work, by race/Hispanic origin, 2024
- Young White workers most likely to have discrimination concerns
- Graph 56: employment – "I do not face discrimination at work," by race/Hispanic origin and key demographics, 2024
- LGBTQ+ workers face significant employment concerns
- Workplace discrimination is a reality for many in the LGBTQ+ community
- Graph 57: employment attitudes, by sexual orientation, 2024
- Income trends and attitudes
- Majority did not receive a pay increase last year
- Graph 58: salary status, actions, plans, expectations, by race/Hispanic origin, 2024
- Alternate income may be a cushion for Black workers
- Graph 59: non-work income status and expectations, by race/Hispanic origin, 2024
- Working women recognize a pay gap
- Graph 60: employment – "I'm fairly paid for the work I do," by race/Hispanic origin and key demographics, 2024
- Reassure women with planning and budgeting tools
- Graph 61: attitudes toward economy and money worries (any agree), by race/Hispanic origin and female, 2024
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Competitive Strategies
- Competitive strategies and market opportunities
- Rocket Money puts consumers in charge
- East West Bank embraces Asian heritage – and past struggles
- JP Morgan Chase makes things happen for multicultural communities
- Mastercard helps Hispanic consumers make their own way
- Prudential echoes the Hispanic voice
- Opportunities
- Partner with Black financial experts to create connections
- Use tech to open up access
- Help the underserved LGBTQ+ community
- Focus on the here and now – not just the future
- Help Asian Americans feel prepared and resilient
- Address the core factor of Black student loan debt
- In summary: key recommendations and implications
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Appendix
- Market definition
- Consumer research methodology
- Consumer research questions
- Generations
- Abbreviations and terms
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