Welcome to Betterment, where we believe in making people’s lives better through investing. As we celebrate Black History Month every February, we shift our focus towards the critical topic of Black wealth.
Exploring the Racial Wealth Gap and the Journey Forward
To truly understand the importance of building wealth for Black individuals, we must acknowledge our shared history and its ongoing impact. The aftermath of slavery did not lead to equality for Black Americans in 1865, and a combination of factors such as housing discrimination, credit disparities, and systemic barriers have perpetuated significant wealth gaps.
Despite these challenges, there have been visible strides towards progress. While wealth disparities persist between Black and non-Black households, recent data shows a 28% growth in Black wealth between 2019 and 2022, driven by housing and business equity. Black businesses have been instrumental in creating jobs and economic opportunities, showcasing the resilience and potential within the community.
However, addressing the racial wealth gap requires a collective effort. Organizations like the National Advisory Council on Eliminating the Black-White Wealth Gap are actively working on systemic solutions to combat this issue. It is clear that individual actions alone cannot bridge this gap—it is a societal challenge that demands systemic change.
Joining the Movement Towards Economic Equity
At Betterment, we are dedicated to supporting individuals through both our investment products and advocacy. Here are two ways you can contribute to the movement:
- Donate eligible shares from your taxable investment accounts to the NAACP, an organization that champions economic policies benefiting Black entrepreneurs and workers.
- Invest in companies that prioritize minority empowerment through our Social Impact portfolio, aligning your investments with meaningful social change.