Budgeting Basics for Black Millennials
Centuries of white privilege have created a wealth divide. Inequality and systemic racism
continue to drive race-based gaps, making it harder for people of color to get ahead and
achieve long-term financial security.
Because African Americans have historically had less access to stable jobs and higher wages,
they have been disadvantaged in accumulating savings and investments. This has made
everything from financial planning for college to retirement planning a whole lot harder for
people of color.
Getting a head start
Fortunately, Black millennials are determined to turn the tides of wealth disparity and are taking
steps to secure their future financial health. By starting early and taking control over their
finances, more young Black people are able to make savings and free up money to be invested.
The first step
It can be hard to know where to start, learning is a process and starting simple is key. When it
comes to personal finances, Black financial advisors suggest that the best first step is a
What is a Budget?
A budget is a money plan, it’s a simple outline of your spending. Creating, maintaining and
adjusting a budget is the most basic step when it comes to financial planning.
Why budgeting is important
A budget helps inform your lifelong financial decisions - from financial planning for college to
retirement planning. It’s too easy to underestimate how much money is being spent on
essential things, such as bills, food, rent/mortgage and transport. Laying out all of your
expenses gives you financial guidance and is a reliable way to identify areas where you could
save some money.
Perhaps you could switch your mobile phone provider to save a few bucks, or catch the bus
instead of an Uber.
Your budget, or money plan, can:
Show you what money you’ll receive and how you will spend it
Help you direct your money toward your goals
Keep you confidently in control of your finances
Be a useful tool for helping you g