Why It
Matters
For generations, minority communities have been held back by systemic financial exclusion, robbing them of the opportunity to build and pass down wealth.
This has created a cycle of scarcity, fear, and survival—where dreams are often stifled before they can take root. Trauma of Wealth is here to break that cycle. We tackle the emotional, psychological, and structural barriers tied to financial trauma, empowering individuals to reclaim their financial power.
By transforming their relationship with wealth, we help people not only rewrite their financial stories but also build legacies that last for generations. This is more than just financial education—it's about creating a future where wealth is a source of freedom, not fear.
01
Wealth Gap Statistics
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Median Wealth Disparity: The median wealth of white households in the U.S. is approximately 8-10 times that of Black and Hispanic households. In 2019, the Federal Reserve reported the median white household wealth at $188,200, compared to $24,100 for Black households and $36,100 for Hispanic households.
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Generational Wealth Transfer: About 70% of wealth in white families comes from inheritances or family assets, compared to about 10% in Black families, reinforcing systemic economic inequalities over generations.
02
Systemic Financial Barriers
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Homeownership Disparity: Homeownership, a primary driver of wealth in the U.S., is significantly lower among Black and Hispanic families. In 2020, the homeownership rate was 73.8% for white families compared to 45.1% for Black families, with the gap widening due to systemic lending discrimination and redlining practices.
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Credit Access and Debt: Due to lower access to traditional credit, Black and Hispanic households are more likely to rely on higher-interest, predatory loans, making wealth-building more challenging. This has led to a high rate of debt burden; in fact, over 60% of Black borrowers hold student debt, compared to about 30% of white borrowers, and struggle with repayment due to systemic wage disparities.
03
Psychological and Societal Impact of Financial Trauma
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Financial Stress: Studies show that financial stress is disproportionately high among minorities. For example, 54% of Black adults report experiencing "high financial stress" compared to 35% of white adults. Financial trauma, in turn, affects mental and physical health outcomes and contributes to generational cycles of scarcity.
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Barriers to Financial Literacy: Financial literacy is often less accessible in marginalized communities, with only 28% of Black adults and 35% of Hispanic adults reporting that they had access to financial education growing up, compared to 50% of white adults. This lack of early education affects wealth accumulation potential and perpetuates financial trauma across generations.
04
Entrepreneurship and Wealth Creation
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Funding Disparities: Black and minority-owned businesses receive less than 3% of venture capital in the U.S., severely limiting wealth-building opportunities through entrepreneurship. When minority entrepreneurs do start businesses, they often face challenges in scaling due to limited capital access and higher-interest loan obligations.
