Four Disadvantages Causing the Racial Wealth Gap

by Charlene Rhinehart | Black Enterprise

It’s been over 150 years since slavery was abolished and we are still battling disparities in wealth that continue to impact communities of color.

Why are African Americans still at the bottom of the wealth scale? What needs to happen to change the narrative in communities that suffer from limited access to resources? How can we pool together to create more opportunities for the next generation?

If you really want to understand the origins of the wealth gap and transform the state of black America, start looking at these four disadvantages that have prevented the growth of many communities.

FOUR DISADVANTAGES CAUSING THE RACIAL WEALTH GAP

Information Deficit

Many of the financial literacy messages that have been promoted in the African American communities are outdated and irrelevant to the wealth building process.

According to findings from Prudential’s 2015-16 “The African American Research Experience” study, most African Africans are comfortable with financial topics focused on managing household expenses and budgets, managing money, managing debt, and life protection. However, less than a third of African Americans are confident when it comes to investing and planning for wealth transfer.

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