1 Sep 2020
Generational Wealth In The Black Community
Generational wealth is a topic that has been resurfacing in discussion amongst the black community in recent years, assisted by the talk of supporting black businesses. Although there is a racial gap in financial opportunities, there are still things that the black community lacks knowledge in that can help toward building generational wealth. Yet, these financial instruments are not exploited near enough. This piece investigates the lack of generational wealth in the black community and suggests ways we can help solve this issue.
Wills, for example, are often seen as a taboo topic in the black community. Superstitions about bringing death closer to that person, by speaking about Wills exists culturally. These are things that stop necessary conversations from happening, which in the long term, can actually cause family rifts and halts the process of generational wealth. According to Black Enterprise, nearly 70% of African Americans have no will or estate plan. This puts the ability to transfer wealth to the next generation at risk.
History: We Can Do It
Partner, or ‘Pardna’ as Jamaicans often pronounce it, is a rotating savings method. It was used mainly by Caribbean’s in the 1950s/60s, because when they arrived in the UK, they discovered that credit savings and banks were not as easily accessible to them as immigrants. They were often discriminated against.
There is also the iconic Black Wall Street in Tulsa, Oklahoma in the 1920s. Sadly, this did end in a devastating way and this trauma may have understandably affected the black community in building generational wealth going forward. Yet it still stands as an example of what we can do as a people when we put our minds together to support our own community.
Solutions to The Lack of Generational Wealth In The Black Community
Speaking about topics that aim to build and generate wealth on a long-term basis is key to improving the issue of generational wealth in the black community. This means speaking about financial resources designed to pass down wealth more.
The reality is that death can happen at any time, so you don’t have to wait until you are a certain age to make a will. You are thinking about your family when you create one.
Financial instruments like ISA’s, Stocks & Shares, for example, are not exploited enough in the black community. You can set up an ISA for your child when they are young and regularly deposit in there. You can also sign up for Stocks in their name for them to later take over at a certain age.
Generational wealth also means investing in the black community as a whole. That means supporting black businesses. Black Pound Day is an amazing initiative to help with this.
Creating multiple income streams is another way to build generational wealth. Whether it’s becoming a landlord or creating an ATM business, there are ways to add to your income and, ultimately, help out your descendants.
Lack of Knowledge
Other financial tools we could be using more include Crypto-currency, Bonds, Investment Funds, Pensions / Retirement Funds. Resources are out there to explain these things in layman terms too.
Here are some resources to help you better understand how to build generational wealth and manage money better. All of these resources are created by black creators:
- The Break is a YouTube channel, created by the sensational fashion blogger Patricia Bright. On The Break, Patricia speaks all about money and business management tips, with occasional guests.
- Money Medics is a podcast led by a trio, that breaks down money management, for Millennials in particular.
- Emmanuel Asuquo has been featured on The BBC, Channel 4, ITV and more. Sometimes referred to as ‘The Black Martin Lewis’, Emmanuel is a financial mentor and also shares tips via his Instagram.
- BrickzWithTipz is a YouTube Channel that educates viewers about the property market. 28 years of age, the founder is a homeowner alongside his wife. On the channel, they also host interviews with others in the property market to share their experience and knowledge too.
What Generational Wealth Looks Like
The effects of generational wealth mean future generations have more freedom to start their own business with the extra help of wealth from the previous generation. It means legacy is left behind and the baton is passed on to your children’s, children’s, children and more.
Financial hardship is the last thing you want your family to go through. However, sadly this happens all too often in the black community, which could be prevented if right resources were in place to help protect family members when loved ones eventually pass on.
I hope this piece has provided more understanding about the severity of the lack of generational wealth in the black community and the resources to help combat it.
Written By: Maxine Harrison – Maxine is a freelance writer and founder of the Remi Reports blog – a blog helping freelance creatives build their business and lifestyle. She has published pieces in The Independent and The Voice Newspaper.