Danetha Doe | OZY | February 1, 2023
According to the Federal Reserve Bank of St. Louis, as of 2019, the median white family in the U.S. had $184,000 in wealth, while the median Black family had $23,000. This disparity shapes not only who is wealthy today but also who is most likely to be financially secure tomorrow: Because wealth is often handed down from one generation to the next, parents who have little in the way of assets pass little on to their heirs.
That’s why generational wealth is essential for closing the racial wealth gap. Generational wealth can be transferred as an inheritance at the time of a loved one’s death or as gifts while the benefactor is still living. Examples of such include the down payment on a home or the cost of higher education. Young people who receive such gifts get a head start on building financial security.
Consider these five strategies to leave a legacy of wealth for the next generation…READ MORE