Fighting racial economic inequities is important in achieving overall racial equity for African Americans.
The wealth gap between white and Black Americans is wide and contributes to not only economic inequities, but also to housing, environmental, and health disparities as well.
In the January 2024 Brookings report “Black wealth is increasing, but so is the racial wealth gap,” by Andre Perry, Hannah Stephens and Manann Donoghoe, the authors break down various research that reveals economic trends and disparities.
The report’s authors, drawing data from the Federal Reserve’s between 2019 and 2022, share that total wealth increased for all racial and ethnic groups, with Black wealth growing from $27,970 to $44,890. Nonetheless, African Americans overwhelmingly lagged behind other racial and ethnic groups, with Latino households making $62,000, white households earning $285,000 and Asian American households $536,000.
According to Brookings: “The growing disparity means that in 2022, for every $100 in wealth held by white households, Black households held only $15.”
The racial wealth gap is wide, but there’s hope. Spreading the good news of financial literacy.
The National Education Association’s (NEA) reports in NEA Today that while closing the racial wealth gap will take time, financial literacy is critical in combating the problem. Nonetheless, the article notes, access to financial literacy is key and often the challenge.
“Having a basic understanding of our financial system, the effects of debt, and how to build wealth, would benefit all students, but especially students of color. However, only 27 states require schools to offer a course in personal finance, and only 18 require that all students take it to earn a diploma,” according to the June 2023 piece.
However, Maryland does require financial literacy standards to be implemented by district, Virginia requires a standalone one-credit course, and on March 20, the D.C. State Board of Education voted to adopt financial literacy standards.
In order to combat racial economic inequities it’s important to spread the importance of financial literacy beyond the classroom.
Parents must teach their children about financial literacy at an early age; college students must learn about financial opportunities, benefits, managing money, and saving and investing for the future; and adults of all ages should continue to be versed in ways of handling finances, increasing their earnings and building generational wealth.
This special edition shares tips for parents teaching children about money, emphasizes the importance of credit, discusses the benefits of side hustles, highlights programming for financial opportunities and generational wealth, and unveils the ins and outs about financial literacy in schools.
While reading this edition, consider ways you might be able to implement these tools and use these resources in your life, and then spread the good news!
As the saying goes, “knowledge is power.” Share this information with your friends, family and community.
The more people begin to talk about financial literacy, the more folks will learn, and, for the Black community in particular, having that knowledge will be powerful in combating economic injustice.