Whether in the media or in the workplace, society is constantly reflecting back to Black women that they are not enough. Research shows that constant exposure to microaggressions, like the racial wealth gap, does indeed take a toll. They can affect Black women’s psychological, mental, physical and emotional well-being.
These biases also can affect Black women and their finances and their propensity to build financial wealth. Studies show that between 2019 and 2022, while median wealth increased by $51,800, the racial wealth gap also increased by $49,950. The racial wealth gap is said to be the result of “centuries of discrimination in public policy, financial practices and societal norms that limited Black wealth accumulation.”
21Ninety spoke with Stacey Tisdale, financial journalist, author and founder of Mind Money Media Inc. about how microaggressions can contribute to the racial wealth gap that affects Black women. Here are three tips from a financial expert on how Black women can overcome the biases that might hinder their financial success.
Know Your Worth and How to Negotiate For It
Tisdale explains that the microaggressions that Black women face often lead them to not valuing themselves. In the workplace and on the job hunt, women often do not ask for what they’re worth and negotiate their salaries, leaving money on the table.
“We don’t negotiate enough for what we truly deserve to be paid, and we don’t charge enough for our entrepreneurial services,” she said.
Before your job interview, be sure to do your research about the average salary for your job title and level of experience. Avoid talking about salary early on in the interview process and avoid sharing what you currently make. Do your best to focus on your experience and skill set, and later in the process, share the salary range you are looking for.
Empower Black Women With Knowledge
Black women often take on financial responsibilities for loved ones and family members. Tisdale said that this responsibility often comes at a cost to Black women’s financial well-being.
“If we are going to be in a position to give to our future generations, we have to empower ourselves first,” she said.
Recent studies show that only about one in two Black women have retirement savings, compared with about six in 10 of all adults. In order to build personal wealth, Tisdale encourages Black women to first figure out their financial goals, how much retirement will cost and what it will take to get there.
The next step is to find support and resources, such as The Stacey Tisdale Change Makers Community. Tisdale created the online community as a safe space for Black women to learn about money, learn from thought leaders, celebrities and financial experts and grow in community.
“I highly recommend engaging an investment professional for the resources you have through your company to help you create an investment plan,” Tisdale said. “The key is knowing your number, which tends to make money goals a lot less scary.”
Educate the Next Generation
One of the most important ways that Black women can build generational wealth is by teaching future generations how to effectively put their money to good use. Tisdale said that financial education and wealth building tools are as important to teach your children as it is to hand them a pile of cash.
“Giving them knowledge and walking our walk in our own lives are equally as important as the financial contributions we must make,” she said. “It is largely up to Black women to create the next financially savvy generation.”