Save Your Way to Wealth: Blacks, Latinos and the Problem With Saving Money
Can African Americans and Latinos get on track with saving for the future?
Can you remember the first time your parents sat you down and talked about a 401K? What about a certificate of deposit (CD) or investing? For many African Americans and Latinos, the lessons about these elementary saving and investing essentials are taught and learned much too late.
Due to cultural and economic disparities, many African American and Hispanic men and women still have a limited understanding of what it means to save money well into adulthood. Having a traditional savings account is a seemingly universal concept, but investing money so that savings grow steadily over time is still out of reach for many people of color.
According to a study done by Ariel/Hewitt, which discussed the equities in salary pay, it is still difficult for minorities to keep and maintain a retirement savings plan.
Below are some percentages on the average income of a single person making between $30,000 to $50,000 per year. This study explains why and how race significantly influences the savings gap.
Ariel/Aon Hewitt Study: 401(k) Plans in Living Color
In the Loop21 series “Save Your Way to Wealth,” we will be discussing what it means to save money, where you should allot your funds, and how you can build wealth for life starting today.
What's the best saving advice you've ever received?