Black women face barriers to building generational wealth: Study

A new study takes a closer look at the challenges black women face when trying to build intergenerational wealth.

of the people Survey of 1,200 black women by Goldman Sachs One Million Black Women (OMBW) finds that debt, housing costs, and limited career advancement opportunities limit Black women’s ability to build wealth for themselves and their families discovered.

These challenges continue even today as Black women pursue higher education.

According to the study, 28 percent of black women owe more than $50,000 in student loans, compared to 11 percent of American adults.

“These findings are more than just numbers. These are the stories of Black women who are college students, working mothers, and retirees striving to leave a legacy,” said Goldman Sachs Global Head of Corporate Engagement. Asahi Pompeii said in a statement.

“We hope that by amplifying the voices of Black women to policymakers and encouraging others to join us, we will make the need for progress undeniable,” Pompey added. Ta.

The Biden administration announced $1.2 billion in loan forgiveness for about 153,000 borrowers on Wednesday, but the OMBW report found that 58% of Black women have no financial support for their families, including financial aid for higher education. It was found to provide “significant support”.

In this study, more than half (56%) of Black women over the age of 45 reported contributing financially to another family member’s higher education costs.

As inequality persists, black women are finding ways to circumvent the gap between rich and poor, with 31% holding part-time jobs in addition to their full-time jobs.

But while more than half of black women want to leave a legacy, only 49% own a home, compared to 65% of all U.S. adults.

Fifty-one percent of Black women hope to retire by age 65, but only 49 percent have retirement savings compared to 61 percent of American adults. Additionally, 66 percent of Black women believe their lack of savings is due to their current income and lack of career advancement opportunities.

Bernice A. King, CEO of the King Center and the youngest daughter of the Rev. Martin Luther King Jr., is partnering with OMBW to push for change.

“Advancing progress on these everyday issues will not only benefit Black women, but all Americans. That’s why we must advocate for systemic change. Because , because we are, in effect, building systems that help foster beloved communities and promote a more just and inclusive future for future generations,” Dr. King said.