Black women face barriers to building generational wealth: Study

A new study breaks down the challenges Black women face in trying to build generational wealth. 

The national survey by Goldman Sachs One Million Black Women (OMBW), which included 1,200 adults with an oversample of 600 Black women, found that debt, housing costs and limited career advancement opportunities restrict Black women’s ability to build wealth for themselves and their families. 

These challenges persist even as Black women are pursuing higher education. 

According to the survey, 28 percent of Black women owe more than $50,000 in student loan debt compared to 11 percent of U.S. adults. 

“These survey results are not just numbers. They are stories of Black women who are college students, working mothers and retirees who are striving to leave a legacy,” Asahi Pompey, global head of corporate engagement at Goldman Sachs, said in a statement. 

“Amplifying the voices of Black women to policy makers and encouraging others to join with us will hopefully make the need for progress undeniable,” Pompey added. 

The Biden administration announced Wednesday $1.2 billion in loan forgiveness for nearly 153,000 borrowers, but OMBW’s report found that 58 percent of Black women provide “critical support” to family members, including higher education financial support. 

More than half — 56 percent — of Black women over the age of 45 in the survey reported financially contributing to another family member’s higher education costs.

As the disparities persist, Black women have looked for ways around the wealth gap: 31 percent work part-time jobs in addition to their full-time job. 

But while more than half of Black women hope to leave an inheritance, only 49 percent own homes, compared to 65 percent of all U.S. adults. 

Though 51 percent of Black women hope to retire by age 65, only 49 percent have retirement savings, compared to 61 percent of U.S. adults. Additionally, 66 percent of Black women attribute their lack of savings to their current income and lack of career advancement opportunities. 

Bernice A. King, CEO of The King Center and youngest daughter of the Rev. Martin Luther King Jr., has now partnered with OMBW to call for change. 

“Advancing these everyday issues would not only benefit Black women, but all Americans. That is why we must advocate for systemic change because, in effect, we are creating systems that help cultivate a beloved community and promote a more equitable and inclusive future for generations to come,” King said.