Definition
The racial wealth gap is the difference in assets owned by various races and ethnicities across society.
Why It’s Important
The racial wealth gap is an important issue because it highlights the disparities between races and shows that efforts at true economic equality are still needed in our society. The racial wealth gap points to a stark reality, where access to certain economic opportunities and resources continues to linger in favor of White people. This includes reduced ability for people of color to have a second-chance after dealing with a financial setback such as job loss, or decreased ability to take part in basic activities like owning your own home. It paints a picture that no one wants to see – not having the same set of options regardless of race. Only by taking seriously the issue of the racial wealth gap can meaningful solutions to truly make equal opportunities available for everyone be developed.
One creative way to help close the racial wealth gap is to invest in innovative programs that teach financial literacy (like this one). Teaching children and adults of color about how to make sound financial decisions can be a game-changer for their finances. An important part of this educational process is making sure people are financially literate from an early age, so consider investing in youth programs that teach budgeting, responsibility, and basic banking information. Another great idea is creating low-interest loan and savings programs targeted specifically at people of color who need financial support. These well-thought-out initiatives will not only reduce the racial wealth gap; they will help people lift themselves out of poverty with tools and education — empowering everyone along the way!
