Financial literacy, wellness and resilience among African Americans: Financial wellness
New insights from the Personal Finance (P-Fin) Index
Financial resilience is one indicator of financial wellness. The 2019 P-Fin Index survey contained several others—questions regarding behaviors that should promote financial wellness or regarding outcomes that demonstrate financial wellness:
• Saving and planning for retirement.
• Non-retirement savings.
• Debt constraint.
Across these dimensions, African Americans tend to exhibit lower financial well-being than whites. However, there is a strong link between P-Fin Index scores and these indicators of financial wellness among African Americans as well as whites—those with greater financial literacy tend to exhibit greater financial well-being. Furthermore, analogous to financial resilience, greater financial literacy tends to mitigate the financial wellness gap between African Americans and whites in some instances.
See Figures 14-17.