The new Black wealth
NEW YORK - Black spending power reached an all-time high in 2021, at $1.6 trillion. But there are still concerns about the net worth of African-Americans in building generational wealth.
Now that many institutional barriers to success have been broken, how possible is a brighter financial future?
High-profile, highly-paid athletes like Magic Johnson, LeBron James, and Shaquille O'Neal are powerful examples of how to use their personal wealth to improve African-American communities.
It could not have been done without financial literacy lessons. Rising hip-hop megastar Megan Thee Stallion is learning these lessons well, says FORBES Senior Writer Jabari Young. Young interviewed the "Hot Girl" chart-topping artist for a Forbes cover story.
Young says, "She already has LLCs in place, and one of the first things she always said was 'I pay my bills, I pay off debt' and she saves her money. That mindset is already there. She has a lot more growing up to do, a lot more revenue to capture, but she has already laid the foundation."
Despite gains made in income, education, and accessibility to opportunities once denied due to institutionalized racism, there's little growth and black net worth, says Wells Fargo Advisors, senior vice president, Mark C. Smith. He says there are many reasons, but one stands out.
"That is really the main thing that's saddling our people, by having a consumer-based ideology and how we look at our own wealth," Smith says. "And spending first, and not saving, and that is the major thing I think we all need to work on."
Elite Realty Partners owner Tenisha Williams went from being a teen mom facing daunting challenges to one of Florida's top real estate brokers and company owners. She mentors more than 150 real estate agents and is dedicated to putting Black families in their dream homes, helping to build their net worth.
"The truth is that there aren't any Black brokerages that are nationwide," Williams says. "The truth is that it's 2023 and when it comes to Black brokerages, not one Black-owned, brokerage comes to mind. So I'm going to work tirelessly so that Elite Realty Partners can pave the way for other real estate brokerages."
Street Soldiers will delve deeper into this topic on Friday night at 10:30 p.m. on FOX 5.