Have you ever heard financial experts talk about how fast the dollar leaves the black community? It used to take about a week, then it took one day, now it’s leaving at light speed. We don’t even know that it has ever been there. The African American household still struggles with its net worth. A new financial report shows that our households are 20 times less than the median net worth of white households. TWENTY TIMES!
The Pew Research Center released a report showing that from 2005 to 2009 the black household stayed behind that of the Hispanics and white households in net median worth. We were not doing great before the housing boom, but things were exacerbated by the dirty lending, the recession and our undeniable addiction to shopping. While we may like to get a “hook up,” we are still hitting the stores and paying the big bucks.
If you’re not sure about the terminology “net median worth,” that’s simple. Take all your assets, income, those things you own or has any worth and subtract your debt from it. That’s what you are financially worth. So, if you are at a -$50,000, well, now you’re getting the picture. Our debt is similar to the national debt. We owe more than we’re worth. We owe on student loans, credit cards, car payments, mortgage, misc. household bills, and ladies don’t let me dig into the mani/pedi and HAIR bills.
So the numbers they’re giving for the black community of $5,677 is spread across the less than 40 million black residents of America. In other words, most of us are at a negative financial worth and living beyond our means. Read the report here to see just how far beyond our means we’re living.