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Welcome to NerdWallet’s Smart Money podcast, where we answer your real money questions.
This week’s episode focuses on talking about the structural and financial challenges faced by black women and how to overcome them.
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The numbers behind the racial wealth gap in America are staggering. For example, according to a 2021 McKinsey Global Institute report, there is a $200 billion annual disparity between black and white inheritance recipients. For many black women, this wealth gap makes it difficult to build wealth and to sustain enough for future generations.
Some of the structural issues that prevent Black women and Black mothers from achieving wealth include structural racism, redlining, the gender pay gap, and lack of access to financial education. However, learning about these issues and how to manage money can help Black mothers overcome difficult circumstances to create wealth for themselves and their children.
There are several ways that black mothers can actively work to close the wealth gap, including investing and owning homes. For moms who are afraid to start their wealth building journey or don’t feel like they have enough to begin with, it’s good to start where you are. It might look like putting away small amounts of money regularly or improving your financial literacy so you can share that knowledge with your children.
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“Smart St. overcoming structural challenges” originally appeared on NerdWallet.