The MSR launches a new Personal Finance page
The New Year is finally here and it is the perfect time for goal-setting. While most resolutions become a distant dream by February, it doesn’t mean we can’t begin making incremental growth. And why not start with our money?
No one can promise you’ll be a millionaire by the end of the year, though one can always hope. But it is possible to lay the foundation for a life of financial health and prosperity. This year is about growth.
According to the World Economic Forum, financial literacy in the U.S. hovers somewhere around 50%. The Personal Finance Index (P-Fin Index), an annual survey that measures competency in financial literacy — including areas of earning, consuming, investing, borrowing, and managing debt — reveals an even greater racial disparity. The P-Fin Index results show that Black Americans answered only 38% of the questions correctly compared to 55% of white adults.
Among the survey’s other key findings:
- Men, older people, those with more formal education, and people with higher salaries are more financially literate in the community of African Americans than younger people.
- African Americans’ best score was in borrowing and managing debt.
- The least understood aspect of personal finance among African Americans is insurance, followed closely by understanding risk, investing, and recognizing reliable information sources.
- In 2019, before Covid-19 and its economic effects, African Americans were more likely than whites to lack financial resilience.
- Functional financial literacy saves people from rainy days and debts.
This study also emphasized the need for proper financial education to increase the literacy rate. Given the differences in financial literacy resources among African Americans outlined in research and the financial literacy gap between African Americans and whites, it is crucial for efforts to address the specific needs of our community. This is why the Minnesota Spokesman-Recorder is launching a Personal Finance page.
The page will serve the community by promoting financial literacy from the African American perspective, providing education, expert voices, and resources to help the community grow their dollar, make an intentional economic impact, and create generational wealth.
The wealth gap in America reveals the median wealth for a Black household is just more than $24,000 compared to $188,200 for white families. This inequality is a barrier to effectively managing, saving and investing. Furthermore, without the time or capital to play Monopoly, how then can this way of living be passed down, or even learned via proximity by subsequent generations?
This truth is staggering but not surprising. It was only in 2023 that the graduation requirement for a personal finance course was passed into law in the State of Minnesota for students beginning the 9th grade in 2024.
Within the last three years, the number of states that require a personal finance course for high school students has gone from eight to more than 25. While these feats are important, they also prove the ironic lack of value placed on financial education in the recent past.
The Federal Deposit Insurance Corporation (FDIC) also emphasizes that “teaching kids about money early on will help them become more financially independent as they grow older.” Financial education has been linked to lower debt levels, higher savings, and higher credit scores as children mature. Financial literacy lessons can start at ages 4 to 6, or even earlier, to help build a strong foundation for future financial well-being.
Ross Mac, renowned entrepreneur and financial expert, whose brand Maconomics has been featured on Yahoo Finance, BET, and Bloomberg, recently released an innovative children’s book to introduce young readers to essential financial concepts and empower them to build a prosperous future. The book, “ABC for Future Millionaires,” combines vibrant illustrations with engaging narratives to teach children the basics of financial literacy, such as saving, investing, and budgeting.
With that said, there are additional factors that have uniquely impacted the Black community. Investor, entrepreneur, and philanthropist Robert F. Smith states that factors impacting the African American community’s financial literacy are systemic and personal.
Popular culture is another culprit. Music, television, and advertisements so often urge us to spend, spend, spend, and keep up with the Joneses. The influx of social media hasn’t helped. The term “money dysmorphia,” not an actual medical diagnosis, refers to an insecurity about one’s financial wellness as a result of constant exposure to the flashy lives presented on social media platforms. Rewiring this mindset then, is imperative in the journey to building personal and generational wealth.
We invite you to make increasing your financial literacy and impact a serious goal, not only in 2025 but for your future and beyond.
Please reach out if you have stories of changing the wealth narrative in your own life or are an expert in the financial sector. We want to hear from you. Send your comments to submissions@spokesman-recorder.com and put “Personal Finance” in the subject line.
Tiffany Johnson is a marketer, writer, and musician in the Twin Cities. She is an MBA student at the University of Minnesota Carlson School of Management. She received her BA in English with a minor in African American Students from the University of Minnesota.