Apparently, when you look at the numbers, the median black wealth isn’t looking so good.
While there have been many looks at African-American’s and the subject of wealth and income, a study recently published by Prosperity Now paints a very bleak outlook for us. The report was first covered by The Guardian, where they interview a Baltimore native building her net worth by $50 a month in order to escape the cycle of declining black wealth.
The study looked at the median wealth (not income) of white, black, and latino households over several years. African-American households have seen a drop in median black wealth from $6,700 to $1,700 from 2010 to 2013.
If this trend holds up, but 2053, when people of color are predicted to represent the majority of Americans, over 50% of African-Americans will have $0 in wealth. We will represent a larger portion of America’s population and a smaller portion of the wealth.
It’s important to note the emphasis on wealth and focus on passing wealth down to future generations. The problem and solution both require giving the same type of head start to future generations that many African-Americans have not had.
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Damien is a Personal Finance Nerd and former Facebook Product Manager who started Wealth Noir to help others find wealth. He actively invests in stocks, robo advisors, and cryptocurrency … but loves real estate investing. He holds an MBA from MIT and a Comp Sci & Econ degrees from Unv. of MD. He’s a proud dad, which is his biggest accomplishment.