The Wealth Race for the Black Family: Do White Families Get A Head Start?
The United States prides itself in the diversity of the country, and the number of different people and cultures within the “melting pot” of America. However, America is also becoming increasingly unequal every year — in recent findings, a white household has more than sixteen times the wealth of a Black household, and these numbers are only diverging more every year.
Major culprits for this widening racial wealth gap include homeownership rates and the labor market. Statistics show that while 73% of white families own a home, only 47% of Latinxs and 43% of Black families own a home. In addition to this, the median white homeowner’s house is worth $85,800 compared to $50,000 for black homeowners and $48,000 for Latinx homeowners, according to Forbes.
Racial inequality manifests even more with a staggering statistic released in 2017. According to a report by Demos, a household headed by a high-school dropout who is white is wealthier today than a household headed by a black person who went to college. This means that the median black American who pursues higher education is still poorer than a white person who never finished 12th grade — a true personification of the phrase, “You must work twice as hard to get half of what they have.”
While in the workforce, whether it be as an entrepreneur, in the corporate sector, or in your specific industry, income and expenses are often the main priority. Paying bills, securing the home, and day-to-day expenses prove to be of high importance, making long-term wealth investments becomes less of a priority, and may not even happen at all.
With the daunting racial wealth gap, do not become discouraged about your financial security. Instead, utilize the resources provided by Walker’s Legacy and the Walker’s Legacy Foundation, such as the PROSPECTUSOnline Business Accelerator Program.