Increasing Financial Literacy & Early Investments are Pillars to Black Generational Wealth
Building financial literacy and investments early in life is essential. Yet, 81% of adults in a 2020 report had one or more income sources outside of social security. Meanwhile, only 44% of Black Americans have retirement savings accounts.
Millions of skillful and hardworking people in Black America can improve their financial wellbeing. However, the opportunity for a more stable financial future is still missing for many hard working people.
Investing early and building financial education is the direct path to financial security. One should not be separate from the other. As a result, financially solid decision-making is even more important. The benefits of effective finance management can also improve your overall wellbeing. These benefits include:
- Eliminating and managing debt
- Investing for your retirement
- Financial opportunity for your children
- Investments that make higher education more affordable
- Improvements to overall mental and emotional wellbeing
Having a rainy day fund under the mattress is not enough to build genuine generational wealth. Make an impact and take ownership of your financial future.
The Future of Black Financial Literacy
Financial education is critical for everyone – especially Black Americans. A lack of resources can hurt families’ ability to be resilient. As a result, knowing how to put your hard-earned money to work for you is, high-key, a path to success.
Everyone knows a family member, or maybe you are the family member who stays on a hamster wheel of debt. Debt can make it challenging to get ahead when you owe money on every dollar you earn.
Financial literacy teaches you to use tools like budgeting, saving and investing. Living a more comfortable life is possible. Achieving financial goals is not unrealistic when you have a solid plan.
Investments Can Fuel Black Generational Wealth
Investments can provide financial protection. Even if you have a high-paying job, when you aren’t sure how to put your money to work, that money can go right back out the window. With effective investment management, you can see returns on your assets.
Investments, even a small amount at a time, can help secure wealth. However, fear of the stock market can cut off some potentially robust gains. So take time to find out the kind of investor you are. Learn your risk appetite, identify your goals, and have an honest look at your finances.
Self-directed investing apps, like Wekeza, lets you as an investor to choose and manage your portfolio. Our robo-advisor helps you to decide your financial goals and risk tolerance. Depending on the corporation, you can earn dividend income for being a shareholder in a company.
Before You Invest
We often hear about how investments can help us make more money. However, before you reach the point of investing money, you need to know what to do with what you already earn.
Budgeting with what you have today opens the door to what you can afford tomorrow. Narrowing down your needs, wants, debts, and savings/investments can beef up your money. The time-tested principle of paying yourself first still holds today. This growth can help you achieve the lifestyle you want, buy your favorite car, dream home, start a family, or even plan for retirement.
You can learn more about financial literacy and investing together with an active community that is passionate about building wealth for the culture – and themselves.