CNBC, February 10, 2023, The barriers Black families face in building generational wealth
The racial wealth gap in the US is stark. For every $1 of wealth held by a white family, a Black family had just $0.25 in 2022, according to the Federal Reserve Bank of St. Louis.
Black families face unique, racist barriers to creating wealth, from homeownership to business ownership, says Salene Hitchcock-Gear, president of individual life insurance at Prudential.
“That is not by accident, that is more by historical design, [through] programs, disadvantages, all of the things that we know about in terms of redlining, and denial of credit for small business, and on,” she says.
To work towards closing the racial wealth gap and building generational wealth for Black Americans, it’s important to understand what obstacles stand in the way. Here are three main barriers to building generational wealth, as well as some solutions that could help close the gap in the future.
