What is the racial wealth gap today?

Do these sentences resonate? 👇

• “I make more than my parents did at my age, but I’m still nowhere near their friends’ wealth.”
• “I see charts about the racial wealth gap and think, ‘Okay… but what does that actually mean for me?’”
• “I’m trying to support Black and Brown businesses, but it feels like the money leaves our communities as fast as it comes in.”

Racial wealth gaps shape who can survive a layoff, leave a toxic job, or help a family member in crisis. In honor of Black History Month, this is a check‑in on where the racial wealth gap stands, how it shows up for Gen Z, and what micro‑moves we can make without pretending that individual action alone can fix centuries of policy‑driven harm.

“African‑Americans control [billions] in buying power annually… We can join together to effect a future the world has not yet conceived, let alone seen.” – Audre Lorde

What is the racial wealth gap?

Wealth is what you own minus what you owe—cash, savings, retirement, home equity, business value, minus debts. It’s different from income. Wealth is what catches you when life swings.​

Recent snapshots (so we’re anchored in right now):

• In 2021, households with a white, non‑Hispanic householder had about 10x the median wealth of households with a Black householder (about $250,400 vs. $24,520).​
• A 2022 analysis found the median white household held around $280k+ in wealth vs. about $40–45k for the median Black household, and roughly $60k for the median Hispanic household.​
• Between 2019 and 2022, Black wealth grew in dollar terms, but the gap with white wealth also grew, with Black families holding roughly $15–$20 in wealth for every $100 white families hold.​

So even when the headlines say “Black wealth is rising,” the more precise truth is: Black wealth is rising and the racial wealth gap is still wide and stubborn.

What does it look like for Gen Z and younger adults? 📉➡️📈

Gen Z is early in the game, but the starting line still matters.

• Younger adults as a whole hold a tiny slice of U.S. wealth. One analysis found that in 2019, people under 40 made up 37% of adults but held only about 5% of total wealth.​
• Inside that under‑40 group (Gen Z + millennials), racial gaps don’t disappear. Families don’t start with the same boosts: help with rent, down payments, debt‑free degrees, emergency bailouts, inheritances, or business ownership.​
• Research shows white young adults are more likely to receive family financial transfers (down‑payment help, tuition, inheritance), while Black and Latinx young adults rely more on wages and debt. Over time, that difference compounds.​

Zoom out and you see a pattern: the assets that grow fastest—homes bought earlier, retirement accounts, stocks, businesses that scale—have historically been less accessible to Black families because of policy and discrimination.​

What about “the Black dollar doesn’t circulate”? 💸

You’ve probably seen the viral line: “A dollar stays in the Black community only 6–8 hours, but 28 days in others.”

Here’s the honest version:

• Economists and data folks have pointed out that the specific “hours vs. days” stat isn’t backed by solid official data; it’s more slogan than measurement.​
• But the feeling underneath that stat is real: in many Black neighborhoods, there are fewer Black‑owned businesses, fewer local suppliers, fewer banks that lend fairly, and less access to capital. Money flows through instead of landing and looping.​

A more helpful reframe is:

That looks like:

• More Black‑owned and Brown‑owned businesses with access to capital, not just hustle.​
• Fair housing and appraisal practices so home equity isn’t undervalued in Black neighborhoods.​
• Real access to retirement plans, investing, and business funding.​

Where did these gaps come from? (the short version) 🧠

Not a full history course, a helpful policy and systems overview:

• Slavery: Centuries of stolen labor and stolen wages, where Black people were legally barred from owning themselves, let alone property.​
• Post‑slavery dispossession: Land theft, racial terror, and racist laws like Jim Crow blocked voting, education, fair pay, and asset building.​
• Redlining and housing policy: Federal and local policies steered loans and subsidies to white neighborhoods and locked Black families out of prime homeownership opportunities, even with similar incomes.​
• Unequal access to capital and protections: Discrimination in banking, lending, school funding, job markets, and business investment. Even when laws changed on paper, enforcement has been weak and gaps persisted.​

These weren’t just “bad attitudes.” They were systems and laws. That’s why the wealth gap doesn’t vanish just because a new generation works hard.​

What actually moves the needle? ✅

This is Black History Month—not “close the racial wealth gap by March.” The goal here is micro‑moves that give you a little more information, leverage, and choice, while we keep it real that the big fix is collective and structural.

• Get clearer on your pay.
  • Ask: “What’s the pay band for this role?”
  • Share ranges with trusted coworkers.
  • Use Equal Pay Days as reminders to update your resume, apply up, or send one raise request email.
• Use the safety net you qualify for (no shame).
  • Food: search “[your state] SNAP apply” and “[your state] WIC.”
  • Housing: search “[your city] housing authority” + “[your county] rental assistance,” and call 211.
  • Health/cash: use your state benefits portal (“apply for benefits [your state]”).
• Be intentional about where your money circulates.
  • Pick one spending category (hair, books, coffee, gifts) and look for Black‑owned or BIPOC‑owned options first.
  • Some of your spending becomes fuel for community assets—not just big corporations.
• Think in terms of assets, not just hustle.
  • If renting: learn tenant rights; explore first‑time buyer or down‑payment help if homeownership is a long game.
  • If working: check for any retirement match and start small if you can.
  • If entrepreneurial: look for Black‑focused incubators, micro‑loans, and grants to turn a skill into an asset, not just a side chore.

"Where you are is not who you are." – Ursula Burns

Here are five questions to help you reflect:

1. Where do YOU notice racial wealth gaps showing up in YOUr daily life?
2. When YOU think about money and safety, what experiences taught YOU what “secure” is supposed to feel like?
3. What would change for YOU if YOU had even one month of true emergency savings?
4. What money conversations do YOU wish YOU could have (with coworkers, family, friends), and what’s currently stopping you?
5. Which system that shapes wealth (pay, housing, education, banking, investing), do YOU plan to focus on first? How?

"If we can unlock the mystery of money, we can help people end the trauma they have around money." – Mellody Hobson

Click on the dropdowns below to see the easy action items:

Some vibes to close us out

Black History Month isn’t just about what Black people have survived; it’s about being real about what we’re still up against.

The racial wealth gap isn’t a mystery; it’s the predictable result of slavery, segregation, discrimination, and policies that prioritized white wealth.

As underrepresented Gen Z and young adults, we shouldn’t have to be “exceptional” or work twice as hard to get half as far.

While we push for structural change like reparations, fair housing, worker protections, and better safety nets, we can also use the tools we do have: salary transparency, benefits, community resources, and intentional money moves that match our values.

YOU got this. 💭✨

Happy Black History Month! ✊🏾

Sources

1. “Wealth by Race of Householder.” U.S. Census Bureau (2024).
2. "The Racial Wealth Gap 1992 to 2022." NCRC (2025).
3. "Black wealth is increasing, but so is the racial wealth gap." Brookings (2024).

Dig into this topic deeper by signing up for our FREE newsletter.

You'll be able to download the reflection worksheet to put all these actions into one page.

Once you're in, come back to this page and download your new go-to resource.