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Sistas ‘lose out by being too generous’

BLACK WOMEN could be hurting themselves financially by loaning or giving money to their families and the church, a study says.

The study of 1,000 professional black women and 454 non-black professional women by financial group ING, found that among the reasons black women didn’t save enough was that they regularly gave money to family, friends and religious institutions.

More than 50 percent of the black women polled said they have loaned US$500 (£285) or more to a friend or family in the last year. A third had loaned family more than US$1,000 (£571).

“Black women's sense of obligation to community and family is both extraordinary and commendable,” Rhonda Mims, president of the ING Foundation, told the website Diversityinc.com.

“When you are pulled in so many directions financially, something or someone has to pay the price. For black women, it appears their financial well-being suffers.”

The Voice found that things were much the same for some black women in the UK.

“You get relatives calling you, saying they need this or that and could you send some money,” said 18-year-old Nigerian student Grace. “I send £50 to £100 each time.

“In a year, maybe I send £500 or £600. I get it off my mum. She sends more than that, probably £300 each time because we have a lot of relatives in school etc, etc.”

The generosity of black women such as Agiboye has helped make the remittance industry boom.

It is worth £2.7 billion in the UK, according to the Department for International Development (DFID), and US $126 billion (£72 billion) globally according to 2004 World Bank estimates.

Housewife Kim Locke said she used to dole out money regularly, even giving £500 in one go to a family member.

“Some family members are always stressing you to borrow money. Over the years I have given away a couple of thousand,” she said.

“I had to put boundaries down. Now, I give nothing. I have four children and I can’t afford it.”

Some black women also took huge chunks out of their weekly or monthly salaries to loan or give money to family, to help pay for school fees or cover other needs.

Many give tithes which amount to between £50 and £200 a month, and also make regular offerings to their churches and give donations for various church needs.

Helen Adeyanju, a 59-year-old nurse, said she didn’t mind the cost.

“I think it’s the right thing to do. Money has no value. It is what you do with the money that is valuable.

“One of the valuable things is to look after your friends and family and the church,” she said.

Adeyanju forks out up to £700 each year for her relatives and the church.

Winsome Douglas, a 53-year-old administrator, dismissed the study’s claims.

“Some are leaving themselves short but I pay what I can when I can,” she said.

“Nobody tells me how much to pay to the church and my family members from the West Indies.

“Some of them are not helpful and they come with their hands opened for something. I give when I can. I don’t make it a habit.”

UK-based financial expert Albert Forbes told The Voice that giving the church and loved ones money is not the main reason why black women have financial problems.

“They are not giving out what they don’t have. They are giving what they have so that’s a good sign,” said Forbes, who runs financial firm Edward Forbes and Company.

“I think a large part of the problem is that they aren’t really taught about the value of money. Maybe if they were taught about managing money, they’d think more about how they spend it. That would make a big difference.”

The ING study supported this view, showing that many black women also suffer financially because they are not taught properly about finances.

Women often went impulse shopping and some continued to buy expensive brands despite the credit crunch.

As much as 68 percent of black women said they bought what they want in a good or bad economy.

The study said 40 percent of black women polled shop to cheer themselves up and many did this on credit.

Many also did not budget, save regularly, set up retirement accounts or invest in mutual or other funds.

Voice reporter Trudy Simpson asked the public: “Do you believe black women are hurting themselves financially by giving to their churches, family and friends?”

Veryl Jones, social worker

“IT’S RUBBISH. It’s utter nonsense because I don’t think that anyone would leave themselves broke. I think people help (family) if they can. As for helping the church, the Bible says you should give a tithe, a tenth.

“I agree with paying back. It’s giving back money to the Lord. I give £50 to £100. If you pay this tithe, you get a blessing. I’ve never gone hungry yet and I have always paid and I am not rich.

Patricia Edmund, 46, psychiatric nurse

“IT’S PARTLY true. I do know a lot of black women who do lend money to family and the church. Some don’t get it back and it distresses them. They realise they never should have loaned them.”

Uchenna Onwenu, 33, student

“I DON’T believe lending or giving money can make you poor. Nobody can make you do that. I think what makes you poor is not getting a proper job. If someone needs help and you can, you help. But when you are not working many hours or paying for school fees, you find it hard to help.

Natalie Rennie, 20, promoter and model

“I DO think it’s true. I think black women are born with an obligation to help family and friends. When they see someone suffering, it’s like a piece of them is suffering so they want to help out.

“I’ve paid for my sister’s school fees and I have helped my mum out. In a year, I’d give maybe £800 to £1,000. I do think it’s worth it. Kindness begins at home, so if you are helping someone you are helping yourself.

Published: 20 October 2008
Issue: 1343

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