Consistent with prior research, Stafford and Chiteji also found substantial differences in bank and stock holdings by race. Even among families with similar levels of education and income, large differences in asset ownership exist between African American and other households. For example, only about one-third of young African American families have bank accounts, compared with more than 80 percent of other households. Besides race differences, the study shows that many other differences exist between young families that have financial assets and those that do not. Aside from having more economic resources, adults who own bank accounts and stocks are more likely to be married, non-African American, and have a higher level of education than those who have no financial holdings.
Parents can be influential in exposing their children to financial options.
The U-M study used data from the Panel Study of Income Dynamics, a nationally representative study of U.S. households that covers a variety of demographic, socioeconomic and financial characteristics. It was presented at the meetings of the American Economic Association in early January.