Tips For Overcoming Barriers to Wealth-Building, According to Black Female Financial Advisors
Black women play key roles as financial decision-makers, with three in four Black mothers being the breadwinners for their households. Yet, they continue to face discrimination and difficulty accessing the wealth-building tools and advisory services that are often essential to creating meaningful financial stability for themselves, and a better future for their families.
A study produced by The American College Center for Economic Empowerment and Equality, titled Black Women, Trust, and the Financial Services Industry, bears this out. The study, which was conducted in 2021 and involved 3,500 middle-income Black women, found that 60 percent of participants had difficulty finding financial professionals or advisors they trust. Lack of trust was the second most cited reason for not accessing financial advisory services, just behind the services being too expensive.
The study also found that discrimination is impacting the access Black women have to wealth-building tools—58 percent of study participants believe their racial identity affects how they're treated by financial services professionals more than their gender. The research also underscores that the way the financial services industry engages with the Black community is often more transactional than advisory.
That's a lot to unpack. But one of the key takeaways is that there's still much work to be done to narrow the wealth gap in a way that meaningfully benefits Black women in this country. But, as three Black women wealth advisors recently explained, these statistics do not have to define your money story. Here's their advice for proactively engaging in wealth building—including finding a financial advisor you trust and making the most of that relationship—as well as taking steps on your own toward financial empowerment.