Black women are falling behind in their wealth-building journeys

Black women are falling behind in their wealth-building journeys
While more than half of those surveyed want to leave an inheritance, student debt and hurdles to homeownership are holding them back.
FEB 27, 2024

While Black women are looking at education and homeownership as paths toward building multigenerational wealth, findings from a national survey suggest they’re facing considerable setbacks.

The latest research from Goldman Sachs' One Million Black Women – which gathered insights from 1,200 respondents – found 57 percent of Black women plan to leave some form of inheritance, including real estate (68 percent), life insurance (68 percent) and cash (39 percent).

But 28 percent of Black women are grappling with student loan debts exceeding $50,000, in stark contrast to just 11 percent of all U.S. adults. More broadly, that gap extends to the 47 percent of survey respondents who said they’re saddled with student debt, compared to just 26 percent of all adults.

A significant majority of Black women reported a high level of educational attainment, with 84 percent completing at least some college education. Despite that, half of the respondents (50 percent) reported annual household incomes below $75,000.

“Black women are making commendable strides in education and are exploring various avenues to build wealth,” the report said. “However, systemic barriers continue to hinder their financial progress.”

Homeownership, often considered a cornerstone of American wealth-building, remains elusive for many Black women.

The survey found that only 49 percent own homes, compared to 65 percent of the general U.S. population. The hurdles to homeownership are notably high, with 63 percent of Black women citing insufficient income as a significant barrier, followed by the cost of a down payment (59 percent) and high interest rates (47 percent).

The financial challenges extend beyond debt and homeownership. A substantial chunk of Black women – nearly 43 percent – reported spending more than 30 percent of their monthly income on housing, significantly hampering their ability to save for retirement.

Alarmingly, only 49 percent have retirement savings, compared to 61 percent of U.S. adults. Among Black women with nest eggs, 48 percent said they’ve saved less than $50,000 for retirement, compared to 27 percent of the broader adult population.

“These survey results are not just numbers,” Asahi Pompey, global head of corporate engagement at Goldman Sachs, said in a statement. “They are stories of Black women who are college students, working mothers and retirees who are striving to leave a legacy.”

AI, alts and personalization are hot trends for 2024: EY

Latest News

JPMorgan tells fintech firms to start paying for customer data
JPMorgan tells fintech firms to start paying for customer data

The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.

FINRA snapshot shows concentration in largest firms, coastal states
FINRA snapshot shows concentration in largest firms, coastal states

The latest snapshot report reveals large firms overwhelmingly account for branches and registrants as trend of net exits from FINRA continues.

Why advisors to divorcing couples shouldn't bet on who'll stay
Why advisors to divorcing couples shouldn't bet on who'll stay

Siding with the primary contact in a marriage might make sense at first, but having both parties' interests at heart could open a better way forward.

SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives
SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives

With more than $13 billion in assets, American Portfolios Advisors closed last October.

William Blair taps former Raymond James executive to lead investment management business
William Blair taps former Raymond James executive to lead investment management business

Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.