MacroMonitor Market Trends May 2012

MacroMonitor Market Trends is a newsletter from Consumer Financial Decisions that highlights topical news and trends of interest to you and your colleagues. If you would like more information about the topic in the newsletter or would like to discuss other ways that we can assist you in your research or marketing efforts, please contact us.

Ethnicity Indicates Financial-Attitudinal Distinctions

The MacroMonitor surveys English-speaking households; households indicate their self-identified ethnic groups. Ethnic households in the survey represent culturally acclimated segments that—similar to the majority of US households—typically engage in and use financial services. However, the patterns of their financial attitudes indicate some real and important distinctions.

Figure 1: What Would You Do with a $25,000 Windfall?

For example, Asian households are more likely than all households to say they would save or invest a $25,000 windfall. "Other" households (not Asian, African American, Caucasian, or Hispanic households) are also more likely than average (all US households) to save or invest, albeit somewhat less than Asian households. Hispanic households, however, are significantly less likely than average to save or invest a windfall.

African American and Hispanic households are more likely than all households to use a windfall to pay off debt. African American and Other households are also more likely to use their windfall to buy something their household needs or wants. African American households are more likely than average to donate a windfall to family or charity.

This single question reveals differences that exist among racial or ethnic groups—even among those well integrated into the prevailing culture. Differences, other than ethnicity, between these segments exist in their demographics, financials, and balance sheets. However, the patterns in each population's financial attitudes reveal key distinctions in how ethnic households interact with financial institutions and intermediaries, what products and services they own, and how they make financial trade-offs and other decisions. Financial providers that understand these insights and integrate these differences into their marketing will find a more responsive clientele and greater success.

MacroMonitor sponsors may access a more in-depth Segment Summary—Hispanics—from their SBI/CFD client landing page. Sponsors may also request Segment Summaries about other populations in which they have an interest—for example, Asians, African Americans, the Emerging Affluent, the Revolving Retired. To learn more about Hispanics, please contact CFD.