Several years ago a study on the net worth of different ethnic groups and genders came out. The results were quite startling. The first set of data that surprised me was the average net worth of white women, it was around $42,000 and I actually found that to be a bit low for the age group (mid-30’s to 40’s). The report entitled “Lifting as We Climb: Women of Color, Wealth and America’s Future” also detailed the net worth of black women that result was even more disturbing it was reported to be $5 dollars.
That’s right, $5 f$cking dollars. The results of this study swept across the nation and people were pretty quick to judge. I read comments concerning black women’s fiscal habits, alleged love of fashion, and a lack of a sense of fiscal responsibility. My reaction was a quick one and I felt like going to a gym and punching a punching bag (I’ve never hit anyone in anger) that report made me angry. At myself, the world, and the people who did the research. Surely they had it wrong?
Sadly, I don’t think they had it wrong and as a woman of color I thought that it was time to respond to write a response especially after spending a year writing about personal finance. I felt like it was time to say something.
I am a black woman and my net worth is more than $5 dollars.
But my net worth should and could be more.
However, there aren’t enough of us who can say that. And quite honestly, I don’t think $42,000 is that much either.
How did we get here? The black women that I know: friends, aunts, grandma, and my mother are some of the hardest working people I’ve ever known. They are also some of the most selfless people that I know. These are people who constantly and consistently value other people before themselves. It not unusual to help extended family to the detriment to your own financial situation. It is not unusual to take in family and raise grandchildren, nieces and nephews, or random loosely related people who have no one.
It is not unusual for black women to be in lower paying jobs, and suffer health related issues from the stress of managing everything on While there are marriages in the black community the number of marriages compared to the 1960’s has dropped substantially and managing a household without a partner leaves us at a disadvantage.
When I went to college I was 17 years old. I went by myself to Illinois where my grandmother lives for a month of spoiling then onward to New York State for college. I was very fortunate because I grew up in a college town and had a very profound and long-term exposure to a college environment. I settled in nicely and did really well. I did see a number of other people do well at school but the students who struggled really struggled.
What if they struggled and dropped out of college? Then, they had student loans to repay. How could they get a good job without a degree? While it’s possible to get a job without a degree it’s quite difficult.
I’ve spent several years thinking about this report and as I spend more time blogging I understand the importance of what I am doing. I want to create a conversation with women, men, teenagers, and kids about growing wealth. I want to be an example. I don’t want to tell people how they are wrong for buying clothes, having a weave, or going on trips, or for helping family. People will do what they want and quite frankly I’ve had a weave, gone on trips, and bought a lot of clothes.
What’s past is past.
I am over a year into my financial journey. I have connected with people who have educated me, encouraged me, and empowered me. I have been pushed to think outside of my comfort zone and have met tons of people: from all cultures, ages, and genders who are trying to change their lives for the better and are in the same position that I’m currently dealing with.
I want to start a revolution where $42000 isn’t lauded and another black woman isn’t derided because she didn’t have the tools to help her meet her fiscal potential.
I want to give people information, support, and the tools to change their situations. By the way, like every community there are all types of people that exist within it: wealthy, middle class, and the rest. All must come to the table and begin the conversation about wealth building. I don’t want people to feel badly for helping out family or doing what makes them happy. I do want people to know how to manage these decisions better so that they aren’t negatively affected by the choices that they are making.
I didn’t have conversations about money in my home. I did have conversations about working hard and going to college. I also hard work and a focus on education in my home. We just didn’t talk about wealth accumulation. I imagine that there are a lot of families like that.
I am proud to be what I am a flawed human being who keeps trying. I don’t want to be defined by a number, the reality is that we all are to some degree. I am cleaning up my fiscal house so that I can help others whomever they may be.
As my net worth increases I don’t lose sight of the importance of my success and how it influences others. I am excited to help other people increase their net worth too!
Have you heard of this study? What do you think? Are there cultural or religious nuances that affect your own personal finances? How have you managed that tension?
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Good post Michelle. Yeah 42k for that age group feels sadly low to me too. I the idea of women talking about money more aggressively is changing, but maybe that change is coming a bit too slow. Keep on being a pioneer and lead by example! 🙂
I just didn’t think that 42k was all that great when people are living well into their 80’s and 90’s. I really want to empower people and hopefully I can lead by example.
Another great post Michelle!!!!!
Thanks Crystal! Btw, my ability to comment on your blog has returned.
I’ve never heard that, but it breaks my heart. I do think there is institutional racism, lack of education and so many factors that could play into this. Some people have an upper hand, and it seems unfair. I’m glad you are on the path to reclaiming your finances and your future! We should be working to increase the net worth of ALL women and stop the staggering statistics.
When the original report came out in 2010 it caused a lot of soul searching, hand wringing, fear, and angst. I actually thought it was an urban myth initially until I discovered that it was a real report. I also mention that the net worth for white women was too low as well. I agree that this is an across the board issue-women have to step it up and I want to be a part of the process of helping to inform and empower people.
Boundaries. As important as financial education. Lack of proper boundaries is at the core of many of the financial problems among women. Search Dr. Henry Cloud for more data.
I’ve heard of Dr. Henry Cloud via Dave Ramsey. I also own the book…but haven’t read it yet! My colleague gave it to me. I do agree that we try to do and be everything to everyone and put ourselves at risk.
I love your idea. We do need to initiate a conversation to discuss (not deride) why the numbers are where they stand. I agree wholehearted, we have so many hard workers who don’t focus on wealth accumulation and end up in living in poverty in the senior years. I read a stat from this interesting book called Prince Charming is Coming by Barbara Staney that says 80% of widows living in poverty were middle class when their husbands were alive. Great post Michelle!
I think that people are quick to “dog people out” instead of listen to where people are-mentally. Then, help to educate and empower. I need to check out that book! I know a lot of people who have worked so hard but are only thinking in the moment. We have to take a long view and I think that’s hard when we’re dealing with the day to day minutae of bills, kids, spouses. You know.
Finance and financial responsibility is probably one of the most important conversations that rarely gets discussed. Of all of the elective college classes u are required to take, personal finance is not even an option and this seems absurd to me. It’s nice to see someone bringing up the conversation!
I always make it a point to discuss finance with the young people we hire at my work (I’m an engineer) and I can tell you not a single one of them (black, Hispanic, white or Asian ) has even the slightest knowledge of finance. Simple concepts like compounding interest are unknown to them. Money works both ways, it can work for you or it can work against you. Certainly, 46k sounds much better than $5 but 46k is a dismal number….especially when you consider that a home was calculated as an asset. Considering u have to live somewhere this to me is not much of an asset.
Personal finance is so important but the amount of time spent educating people about: debt/savings/investing is not enough to counter what we’re inundated with daily on t.v./pop culture/and other social norms. And you’re right $46,000 is not good either. I am very focused on working with and educating as many people as I can so that they don’t have to go through all of the financial pain that I have OR so that they can turn things around with support, information, and resources.