It’s been over a quarter-century since the US has seen a wealth gap between whites and minorities like we’re seeing today. According to new Census data, whites on average have 20 times the net worth of blacks and 18 times that of Hispanics.
In the Huffington Post article, “Wealth Gap Between Whites, Minorities Widens To Greatest Level in a Quarter Century,” the economic downturn slashed housing values and raised unemployment rates, causing a racial and ethnic separation that had been making gains over the last 25 years.
The analysis shows evidence of the impact that differing levels of assets between young minorities and older whites have on the economic well-being of today’s America: a younger minority’s main asset is their home while an older white person is more likely to have stocks and 401(k) retirement accounts. The housing boom in the mid-2000s were largely responsible for Hispanics making recent gains. However, the “housing bust” caused much of it to deteriorate.
“The findings are a reminder – if one was needed – of what a large share of blacks and Hispanics live on the economic margins,” said Paul Taylor, director of Pew Social & Demographic Trends. “When the economy tanked, they’re the groups that took the heaviest blows.”
LifeBound’s new book Dollars and Sense: How to Be Smart About Money meets all six national financial literacy standards established by the Jump$tart coalition. This book can help teens of all economic backgrounds understand their relationship with money, learn a basic understanding of investments, stocks, bonds, and real estate, avoid credit card debt, and financially plan for today and the rest of their lives. Our goal is to educate a new generation of financially literate youth that can enter their adult lives with the skills they need to plan for a successful, happy, and secure future.
References:
“Wealth Gap Between Whites, Minorities Widens To Greatest Level In A Quarter Century” http://www.huffingtonpost.com/2011/07/26/wealth-gap-whites-minorities_n_909465.html?ncid=edlinkusaolp00000009
