According to the economic state of Black America report, roughly 3.5 million black families (19%) have a negative net worth, Black Enterprise reported.
Nearly one out of every five Black people are impacted by the net worth problem. Only 8% of White households have a negative net worth, in comparison.
The primary issue of the dismal net worth numbers for many Black families is, in part, due to debt, according to the article. Teri Ijeoma, a course creator on Teachable, has helped others eliminate their debt. She’s taught people how to make money in the stock market through her trading courses, the article stated.
Philly-based financial coach Shaquana Watson-Harkness went another route. She saved and reduced her spending and was able to pay off $169,000 worth of debt in two years, the article added.
John W. Rogers, Jr., founder of Ariel Investments, created a school on the south side of Chicago to address this problem, the article said.
“To me, financial literacy is not just about saving, credit cards, retirement, and home mortgages,” Rogers said during an interview with Black Enterprise. “All those things are important. But equally important is understanding how to invest in the equities market and compound money. Long-term stock market returns have substantially outperformed the returns on savings accounts.”
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