Financial Literacy Month
As the financial landscape evolves, enhancing financial literacy within the Black community is crucial for fostering economic empowerment and addressing longstanding disparities. Andre Creighton, a seasoned chief financial officer and financial wellness expert, provides actionable strategies to navigate personal finance effectively and bridge the racial wealth gap.
Systemic barriers have contributed to a pronounced racial wealth gap. According to census.gov, in 2021, Black households, constituting 13.6% of U.S. households, held only 4.7% of the nation’s wealth, with a median wealth of $24,520 — approximately one-tenth that of white households at $250,400.
Creighton highlights historical injustices: “While we were enslaved, others were building wealth. There was a long time Black folks couldn’t even buy homes. That’s substantial generational wealth that’s been missed.”
Implementing financial wellness practices
To achieve financial wellness:
- Budgeting: Establish and adhere to a budget.
- Debt reduction: Prioritize paying off high-interest debts.
- Credit management: Build and maintain a strong credit profile.
- Consistent investing: Regularly invest in assets that appreciate over time.
- Knowledge sharing: Educate younger generations about financial management.
- Risk management: Invest in preventative measures and establish safety nets for unforeseen circumstances.
Mastering personal finance fundamentals — such as budgeting, saving, and debt management — is vital for long-term wealth creation. Tracking income and expenses enables informed decision-making and financial organization.
Reducing high-interest debt and establishing strong credit can liberate income for future investments. A good credit score offers benefits like lower interest rates and enhanced financial stability. Creighton emphasizes the impact of financial habits passed through generations, noting, “If your family hasn’t had a great relationship with money, it’s likely their children won’t either.”
He reflects on his personal experience: “My parents worked great jobs but lived paycheck to paycheck. Now, I’m not — and my son will live differently because of what I’m doing now.”
Investing in assets such as stocks and real estate can significantly influence one’s financial future. Creighton recommends culturally relevant resources like “Trappin’ Tuesdays,” a live show on YouTube that simplifies stock investment concepts for broader accessibility.
Reflecting on his early exposure to affluent clients, Creighton shares, “Seeing what they were doing with their finances helped propel me in my financial journey.”
Accumulating wealth extends beyond income; it necessitates a shift in mindset, unlearning detrimental financial habits, and committing to passing down constructive practices. Creighton likens the financial journey of Black Americans to a race with an unequal starting line: “It’s like running the 400, but you don’t get to start when the gun goes off. You start when everyone’s already 100 meters ahead. But I do believe we’ll catch up. It’s just going to take time.”
He underscores the importance of collective effort and accountability, advocating for support of Black businesses and group economics: “There’s a lot of great Black businesses out here, and we need to support each other. The more we support each other, the more we increase wealth for each other.”
Mentorship and legacy are also pivotal. Creighton feels a responsibility to guide others: “I think, you know, as a Black professional that has humbly gotten to a CFO role pretty early in my career, I have a duty to pass that back down.
“One of my good mentors, Alan Page, always says, ‘When you take the elevator up, you have to send it back down for other people.’ And that’s what I continue to try to do.”
Creighton advises securing life insurance and consulting financial advisors: “If we just took the time to get a financial advisor and life insurance — it’s life-changing money that can be passed into your family.” He also emphasizes the importance of having a Certified Public Accountant (CPA) and legal protection: “People get sued for everything under the sun. Having an attorney helps protect your assets.”
Enhancing financial literacy within the Black community is a critical step toward economic empowerment and bridging the racial wealth gap. By adopting sound financial practices, supporting each other, and fostering a culture of mentorship, progress toward financial equity is achievable.
Financial Executives International (FEI) Twin Cities is offering a complimentary workshop series in April to help individuals build foundational skills in budgeting, credit, insurance and homeownership. Hosted at St. Paul College from 6 to 8 pm on April 9, 16, 23, and 30, these sessions are open to all, with free admission and parking.
Kiara Williams welcomes reader responses at kwilliams@spokesman-recorder.com