An Opinion and Narrative - How Can We Change the Financial Platform for African-Americans?
A Deeper Conversation Is Needed
We need to explore the reasons why Americans, especially, African Americans are not able to make ends meet. In crafting this article, I honestly struggled a bit. We have overcome so many orchestrated challenges against the African American community. I truly want to point out the positive things occurring within the culture I represent, however, there is an obvious discomfort centered around topics of money. More than likely, it stems from the existence of a present or past problematic financial circumstance.
I noticed when an attempt to start a conversation about money-related topics on social media; the engagement noticeably drops off. I have learned that glossing over a problem never truly results in a solution. So, here we go – a deep dive into a systemic problem.
What you should know: I AM A SUCCESSFUL ENTREPRENEUR. I DIDN’T COME FROM MONEY. I DIDN’T HAVE A TRUST FUND. I CREATED MY WEALTH THROUGH HARD WORK AND EDUCATION. I ENJOY THE ACQUISITION OF MONEY. MY PERSONAL FEELINGS ABOUT MONEY ARE COMFORTABLE.
My objective: CREATING MORE LIKE-MINDED INDIVIDUALS LIKE MYSELF TO PERPETUATE MONEY IN THE AFRICAN AMERICAN COMMUNITIES TO HELP OVERCOME ADVANCED SYSTEMIC POVERTY RELATED ISSUES.
What's In the News About the Financial Health of Americans
In 2018 Trump issued many statements reflecting a booming economy - often times saying, it was the best it has ever been. Yet, in the daily dialogue of many Americans, we hear contradictory statements such as, I am struggling, I am broke, and I am barely making it. According to a market-watch article, Americans have zero or negative wealth. It painted a clear picture of many families in the U.S. living on the edge of financial ruin. Confirming the economic contrast, I read a report stating most Americans don’t have even $1000 saved for emergencies.
Contributing Factors
Economic Adversity
- The Median Household Income rose to $63,688 a light increase over 2018 and we are still below what was in 1999 due to inflation.
- The average rents have increased by approximately 28%
- Student Loans are difficult to repay and significantly impacts Hispanics and African Americans.
Behavioral Adversity
A big hurdle with many might be the concept of delayed gratification. Overcoming the urge to engage in Impulse spending for an immediate feel-good moment versus Instead of resisting for a bigger reward later is a real problem for many. It boils down to poor money-management skills and a lack of financial discipline. 75% of people manage their own money but have never been educated on money-management. It is not taught in schools so most people go through life without ever truly understanding money-management skills. Once in financial trouble, they are afraid/embarrassed to ask for help, so they just put their head in the sand and the problem exacerbates to a crisis level.
Addressing Possible Solutions – How Do We Combat These Statistics?
Coaching on Fiscal Responsibility
It is about money management. Even if you make $1000 you must manage it properly to put yourself in the best position. The next step will be to find ways to make extra income. Not a 2nd job. There are a lot of things someone can do to generate extra income.
One might consider freelancing platforms such as Upwork or Fiverr. Selling goods and services on social media platforms might also provide some additional supplemental income as well. My point here is that creative entrepreneurial effort might assist someone in finding ways to bring in extra cash in the door. Avenues to save money should also be taken advantage of. Many companies now are taking advantage of this concept by adding services to assist one in decreasing wasteful spending.
Education
Those who lack higher education face a sort of hidden uncurrent when it comes to wage earning. That is not to say the education barrier cannot be broken through. But it is noteworthy to say, higher salary earners are typically those who have advanced degrees. (https://www.bls.gov/emp/chart-unemployment-earnings-education.htm). The education component is best described in a two-fold point of intersection:
1. There is a $2000 gap between the average salaries of highly skilled/educated salaries and nonskilled labor. We know that education in specific industries is the key to the high-tiered pay scales. (https://tradingeconomics.com/united-states/wages)
2. America has failed to educate young adults on how to responsibly handle money. Most school systems don’t allow for real-life money management skills. In fact, it is safe to say many young adults are repeating a “learned” cycle from their own economic hardships endured at home.
Community Efforts and Creating Opportunities for Growth
I believe Entrepreneurs like myself have a profound responsibility to our communities. I feel deep connectivity to the young people here in Southern California and wish to partner with those like-minded. Let’s keep asking ourselves how we can stop the progression of destructive financial behavior and answer it with viable solutions through mentoring.
A Los Angeles legend, Nipsey Hussle, was recently killed. The sadness was felt deeply in the LA community and left many eager to further his spirited message. His influence expanded from embracing his technology and investing in the areas of stigma to a place where people wanted to live, work, and visit.
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‘In Closing, I would say this article services as a statement of action and purpose rather than as opposed to a redundant restating of an obvious problem. I invite collaboration, opinion, and partners.’
Thanks for reading, Cameron Stewart, BOCO, BOCP
Learn more about the Author, Owner of Alcam Medical and other diversified business holdings, Cameron is committed to excellence and continued community support.