Financial Literacy
The racial wealth gap continues to haunt families and individuals in the United States as the need for financial literacy in low income and minority communities continues to rise.
As the COVID-19 pandemic targeted the Black community, it shed light on the many racial health and wealth disparities faced by Black men and women alone.
In addition, the lack of economic resources before and during the pandemic while in the midst of heightened racial injustices against Black men, has raised awareness towards the financial hardships among minorities in the United States.
In the midst of the pandemic, Black employees face a higher chance of losing their jobs than their white counterparts.
Furthermore, Black people face greater health care disparities which put them at greater risk for getting ill and being unable to work.
The Center for American Progress reported, “68.1 percent of Black families with incomes from $35,000 to $100,000 who had lost work during the pandemic indicated that they could not afford all of the food they needed, faced eviction or foreclosure, or had difficulty paying all of their bills from August 2020 to December 2020,” (Weller and Roberts, 2021).
Although 2021 has raised awareness of the wealth gap among Black, Hispanic, and white households, a true increase in the median wealth of Black families should be encouraged with more financial awareness in the Black community.
Financial literacy is a growing need in the Black community, especially among youth, college students, and adults.
2019 studies on African American adults have revealed low percentages in financial literacy in the United States, with a higher percentage of 42% in Black males.
Results show a need for an increase in education on investing, saving, earning wages, the operations of insurance, and the management of debt.
With an increase in financial literacy among both Black men and women, financial wellness within the Black community as a whole will not only be a new reality, but a crucial enactment for future generations.
