Study Finds Women of Color Have Little $$

[Gee-Are]

This is a shame...

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STUDY: Women Of Color Age 36-49 Have Median Wealth Of Just $5

First Posted: 03-11-10 11:39 AM | Updated: 03-11-10 03:31 PM


According to a report released by the Insight Center for Community Economic Development this week, there is a vast discrepancy in wealth between single women of color and single white women.

The study, "Lifting As We Climb: Women of Color, Wealth, and America's Future," found that while the median net worth of single white women ages 36-49 is $42,600 -- 61 percent of the median wealth for same-aged, single white men -- single women of color in the same age group have a median wealth of just $5.

Black and Hispanic women are also drastically worse off in a broader age bracket, with nearly half of single black and single Hispanic women ages 18-64 reporting zero or negative wealth (46 percent and 45 percent, respectively), compared with 23 percent of single white women, according to the report.

The financial situations of single women of color are so precarious, the study found, that just one unpaid sick day or appliance repair would send about half of them into debt.

And while marriage appears to ameliorate some economic hardship for both men and women across races, the data indicate that the positive effect of marriage on net worth is particularly amplified for black and Hispanic women.

The report offers a number of possible explanations for the wealth gap, including prior and current institutional factors (such as wage disparities and access to fringe benefits in the workplace), as well as a higher rate of being targeted by predatory lenders. (A recent study by the National Council of Negro Women and the National Community Reinvestment Coalition, the authors point out, found that across income groups, black and Hispanic women were much more likely to be caught up in expensive loans than white women.)

But a number of policies, the authors argue -- enhanced employment opportunities, support for self-employment and microenterprise, incentives to save and stronger social insurance -- would go a long way toward closing the wealth chasm:

"It is the author's intent and sincere hope that shining a spotlight on women of color and wealth becomes a catalyst for policy change - change that will lift women of color as they continue their climb toward economic security. Their futures are inextricably linked with the economic future of the nation."

www.huffingtonpost.com/2010/03/11/women-of-color-have-media_n_495238.html

[Bunny Hop]

Grrrrreat....another article informing Black women that they are not on the level of <<insert race>> women, Black men, White men and every other group on the planet.

[Noble Work]

Wow.....We been knowed this. This ain't a "report" to us.

"One paycheck away from being on the streets" is what someone said a long time ago.

[Bunny Hop]

Actually I didn't know this and I don't know if I can believe that that there is a dayum $42,595 difference. That sounds like some really funny statistics....

[Gee-Are]

I thought the gap was a bit extreme myself. I was thinking, what are these women doing? I mean they didn't say that white women necessarily earned more, it just said they had a higher net worth to the tune of 42,590 dollars. Amazing!

Is that due to trust funds? Rich daddies? Suga daddies? They know how to save?

What could be the answer for that?

I bet similar disparities exist for men as well...

[Cambist]

Student loan and housing debt could be a large factor when you consider women who are gainfully employed and educated. When you have loans and a mortgage you must subtract the balance from your assets. So in the end, many Black women probably didn't start life with much (no college fund or parents to pay the 20% down payment on that starter home) so they probably do have a lower net worth as a result of the wealth gap.

[Bunny Hop]

Mar 11, 2010 21:34:23 GMT -5 @nsync said:

Rofl! I couldn't see your screen name or siggy at first but I knew this was you! Exalt!

LOL...I just get tired of it. I feel like the Black woman is under attack or something. I read where someone said maybe it was a response to our First Lady and I thought they were reaching but I'm really starting to wonder if that actually has something to do with it.

[Bathroom Model]

Mar 12, 2010 10:06:08 GMT -5 Cambist said:

Student loan and housing debt could be a large factor when you consider women who are gainfully employed and educated. When you have loans and a mortgage you must subtract the balance from your assets. So in the end, many Black women probably didn't start life with much (no college fund or parents to pay the 20% down payment on that starter home) so they probably do have a lower net worth as a result of the wealth gap.

that is so true. We as black people rarely have any inheirtance to pass down to our children or even funds to help with this if we are alive.

[123Diva]

Mar 12, 2010 10:06:08 GMT -5 Cambist said:

Student loan and housing debt could be a large factor when you consider women who are gainfully employed and educated. When you have loans and a mortgage you must subtract the balance from your assets. So in the end, many Black women probably didn't start life with much (no college fund or parents to pay the 20% down payment on that starter home) so they probably do have a lower net worth as a result of the wealth gap.

Cam hit the nail on the head.
This is why I want my kids to have trust funds. (Some strings will be attached.)

Eff the stigma of trust fund babies being spoiled, lazy, and mal-adjusted. I WISH I didn't have to pay back school loans each month. I WISH I didn't have to start of in the hole upon college graduation. "Good debt" is still debt.

If I can help it, my kids, will not start off their life in the red.

[T-Rex91]

*walks in thread*

*Is dumbfounded by reactions that $43K net worth as a middle aged person is something good*

*exits thread but not before saying*

If you eat a steady diet of low expectation, that 's where you will live. Yeah, these articles play to averages but live your life outside the bell curve. I'd cry if my net worth were that low at my age. Rather than dwelling on all the studies that place limits on you, just excel! At some point you have to block out all the data that says you can't.

[T-Rex91]

*comes back in and says*

I can manipulate data to show any outcome I want. I can negate correlating factors, alter sample size, choose dissimilar data points, anything. Until I see how you came to your conclusion, I tend not to put a lot of stock in "studies"

[Bunny Hop]

Mar 15, 2010 13:45:33 GMT -5 T-Rex91 said:

*comes back in and says*

I can manipulate data to show any outcome I want. I can negate correlating factors, alter sample size, choose dissimilar data points, anything. Until I see how you came to your conclusion, I tend not to put a lot of stock in "studies"

Sooooo true. I've done enough data analysis to know how it goes, LOL.

[T-Rex91]

Outtie, I applaud you for your approach. My BF's sister wanted him to go in with her to buy his niece a Barbie jeep and my first question was, "Does she have a 529 that you could contribute too?" We all know the answer. Until we change our mindset toward financial education and preparation, we will continue to lag behind. Kids only need so many clothes and toys but to Diva's point, graduating from college loan free? That's invaluable in these times.

[Cambist]

Conspicuous Consumption consumes our community. We define success by the cost, size and quantity of our possessions.

[DamieQue™]

Mar 19, 2010 9:14:35 GMT -5 Cambist said:

Conspicuous Consumption consumes our community. We define success by the cost, size and quantity of our possessions.

Doesn't just about everybody else also? Granted they do not suffer nearly to the same degree that we do because of that consumption (because they have generational wealth).

I worry about our generation and following generations because they understand richness... not necessarily wealth. They want what they see others have, without realizing or acceding to the time constraints and work required to get there.

How do we possibly prevent people from fixating on richness and instead get them to focus on and understand the concept of wealth? Suggestions anyone?

[Gee-Are]

Mar 19, 2010 9:23:35 GMT -5 DamieQue™ said:

Mar 19, 2010 9:14:35 GMT -5 Cambist said:

Conspicuous Consumption consumes our community. We define success by the cost, size and quantity of our possessions.

Doesn't just about everybody else also? Granted they do not suffer nearly to the same degree that we do because of that consumption (because they have generational wealth).

I worry about our generation and following generations because they understand richness... not necessarily wealth. They want what they see others have, without realizing or acceding to the time constraints and work required to get there.

How do we possibly prevent people from fixating on richness and instead get them to focus on and understand the concept of wealth? Suggestions anyone?

It's exactly what you say...delaying gratification. WE have to be able to understand what the benefits of sacrifice are before we can teach it to our children and their future generations.

Yes, we come from an ancestry of slavery, and overt and institutional racism, and that has in some regards put us behind the 8-ball, but we have to at some point take that hand we were dealt, turn some cards in and turn it into a better hand.

I'm sure that none of our ancestors wanted to be a part of chattel slavery, but to ensure their lineage, they sacrificed, shut the hell up and kept it moving.

I'm fairly positive none of our relatives who got hit in the head with bricks, saw their neighbors lynched, or got hit with firehose water wanted to experience any of that, but they took their lumps, kept marching and sitting at lunch counters for the hope of a better day for their kids.

Now, I know we don't want to wait on that big screen LED tv and our own 5 bed/4bath mansion like a lot of our co-workers have just to save a few pennies from each check after we pay off bills and debt, or put something away for our kids' education, but isn't that sacrifice better than the sacrifice our ancestors made? WE just have to suck it up, and I'm talking to myself too.

Maybe it's worth it to live 2 or 3 families to a home like some other cultures do. Pool resources to make large purchases. Not be so concerned about whose name is on the letterhead and partner in business.

Other races are in this country doing those things now and moving ahead. Maybe the answer is to follow their lead.

[T-Rex91]

Mar 19, 2010 9:23:35 GMT -5 DamieQue™ said:

Mar 19, 2010 9:14:35 GMT -5 Cambist said:

Conspicuous Consumption consumes our community. We define success by the cost, size and quantity of our possessions.

Doesn't just about everybody else also? Granted they do not suffer nearly to the same degree that we do because of that consumption (because they have generational wealth).

I worry about our generation and following generations because they understand richness... not necessarily wealth. They want what they see others have, without realizing or acceding to the time constraints and work required to get there.

How do we possibly prevent people from fixating on richness and instead get them to focus on and understand the concept of wealth? Suggestions anyone?

I disagree with the red part. Clears do emphasize things like what school your kids are in and what neighborhood you live in but I've seen many a Buick with factory rims in front of a McMansion. In my hood, it's not uncommon to see Hummers and 7 series Bimmers in front of apartments. Generational wealth is not making us want a LV Speedy purse when we work at Starbucks or spend a week's paycheck on an outfit we plan to return after folks see us in it.

[DamieQue™]

Mar 19, 2010 10:05:19 GMT -5 T-Rex91 said:

Mar 19, 2010 9:23:35 GMT -5 DamieQue™ said:

Doesn't just about everybody else also? Granted they do not suffer nearly to the same degree that we do because of that consumption (because they have generational wealth).

I worry about our generation and following generations because they understand richness... not necessarily wealth. They want what they see others have, without realizing or acceding to the time constraints and work required to get there.

How do we possibly prevent people from fixating on richness and instead get them to focus on and understand the concept of wealth? Suggestions anyone?

I disagree with the red part. Clears do emphasize things like what school your kids are in and what neighborhood you live in but I've seen many a Buick with factory rims in front of a McMansion. In my hood, it's not uncommon to see Hummers and 7 series Bimmers in front of apartments. Generational wealth is not making us want a LV Speedy purse when we work at Starbucks or spend a week's paycheck on an outfit we plan to return after folks see us in it.

I would argue that the "clears" are not above defining success by the cost, size and quantity of possessions... emphasizing what schools they get in, to me, is no different than crowing about what their mutual fund is doing, particularly when many of the off spring of well to do parents will arrive at some of these institutions based largely on connection rather than pure academic aptitude.

Agree to disagree, but I see the chase of material possession seems to be more a byproduct of a culture reared on capitalism rather than any particular ethnic quality.

[LogAKAlly <3'n Keef]

When it comes to poor folks - regardless of what color...the inability to delay gratification is byproduct of the need to to emulate the "Leisure Class."

The terms "conspicuous consumption" and "leisure class" were coined by Veblan.

The Theory of the Leisure Class is a book, first published in 1899, by the Norwegian-American economist Thorstein Veblen while he was a professor at the University of Chicago.

Veblen, in this book, coined the now-common concepts of conspicuous consumption and conspicuous leisure.

He defined conspicuous consumption as the waste of money and/or resources by people to display a higher status than others. One famous example he used was the use of silver utensils at meals, even though utensils made of cheaper material worked just as well or, in some cases, better.


He used the term "emulation" to describe these actions. For example, people attempt to mimic the more respected members of their group in order to gain more status for themselves.

>>>Keeping Up with the Jones'...the Hiltons, the Kardashians....etc.

He defined conspicuous leisure as time given certain pursuits in return for higher status.[/u]

One way that it manifested was redefining pale skin as a symbol of wealth.

Some of us know that...at one time white pale skin was a sign of status because it meant you didn't have to toil outdoors, you had servants.

Folks used to apply powder to make themselves even whiter.



Eventually, as wealthy people began to travel abroad...especially to more southern regions, they'd returned with sun kissed/tanned faces.

The ability to travel leisurely (conspicuous leisure) was exclusively an act of the rich.

Therefore, a tanned face became a symbol of higher status.

Whereas neoclassical economics defines humans as rational, utility-seeking people who try to maximize their pleasure, Veblen recast them as completely irrational creatures who chase after social status without much regard to their own happiness.


As an example from modern-day life, certain brands and stores are considered more "high-class" than others, and people may shop at them, despite the fact that they cannot afford to do so, and even though cheaper alternatives would ease their financial situation and the goods available may be of equal utility. In another example, writer George Balgobin argues that "intellectual" pursuits such as higher education and classical music are pursued as acts of social status rather than for rational or economic reasons.[1]

Following this line of reasoning, Veblen also concluded that businessmen were simply the latest manifestation of the leisure class. He noted that businessmen do not produce goods and services, but simply shift them around whilst taking a profit. He thus argued that the modern businessman is no different from a barbarian, in that he uses prowess and competitive skills to make money from others, and then lives off the spoils of conquests rather than producing things himself.


Other implications to society include "Trophy wives."

As this pertains to African Americans, I would argue that the time and conditions (way we were brought here, existed here and continue to exist) in America have more to do with our behavior than our race.

2nd and 3rd generation Hispanics are also succumbing to this phenomenon.

For example, Pedro's grandmother may have come here illegally and cleaned toilets, Pedro's father may have cut grass to put Pedro through college...Pedro will NOT want to. In fact, Pedro will want a slice of this American pie just like Becky.

There is also another EXTREMELY important variable that accounts for this trend - but that' what my dissertation is about so, I can't give that up - not yet anyways.

[Coldfront06]

^^^Exalt for that...very interesting and very true

[T-Rex91]

See? When Log uses her powers for good, it's amazing what she can do....LOL.

The interesting thing about the whole emulation concept is that people who practice it are off base a lot of times. Going to a PWI with truly wealthy people taught me that some of the grungiest people on campus were worth the most. Old money doesn't flash, it just is. When you spend a lot of money to appear to have a lot of money you are really emulating the new money Diddy set which typically old money doesn't respect. I was watching an interview with Diddy once and he said, "I'm worth a lot, I'm just not liquid." New money is highly leveraged because of the image they are trying to create.

[LogAKAlly <3'n Keef]

TY Cold!! ;D

LOL@ 91...I definitely agree with you somewhat.

Old money definitely flashes - it just flashes differently, i.e. real estate, education (Yale, Harvard, etc), arrogance, entitlement, authority, power, etc.

Poor folks try to do what they can with what they have...

"I can't buy the mansion but I can get the Benz...besides I can cover more ground (emulate in front of more) in the Benz than in the house."

We often think in shorter terms than rich folks (which is 70% of my dissertation) - therefore we pursue the quick and the fast payoffs (by payoffs, I mean intrinsic over extrinsic profits).

Black Ice said it best:

"It's hard when you have nothing on the inside to shine on,
so nigguh get they grind on,
So give me all the bling, the weed and a lil bit of paper
to provide some pacification...
to deal with this bullshit frustration"

[T-Rex91]

I guess it depends on who you want respect from. Roll up on a Vanderbilt or an Astor or someone who inherited a house on the Vineyard in a tricked out Benz looking all "new money" and shiny and you'll be shunned. Roll up on Diddy or Kim K and you might get some props.

[T-Rex91]

I guess the gist is that most of the people studied probably can't define how you calculate net worth...what's an asset and what's a liability. Let's take it step further and get into appreciating versus depreciating assets and you loose another chunk of people. Until we place as much value on a 6 month nest egg as we do a blinging watch or jordans on a baby that can't even walk, the situation doesn't get better.

[LogAKAlly <3'n Keef]

Mar 22, 2010 11:09:14 GMT -5 T-Rex91 said:

I guess it depends on who you want respect from. Roll up on a Vanderbilt or an Astor or someone who inherited a house on the Vineyard in a tricked out Benz looking all "new money" and shiny and you'll be shunned. Roll up on Diddy or Kim K and you might get some props.

Very true...simply because Diddy is also engaging in conspicous consumption (pouring out Cris) and emulation.

[T-Rex91]

new money typically does

[LogAKAlly <3'n Keef]

Mar 22, 2010 11:28:13 GMT -5 T-Rex91 said:

new money typically does

And unfortuantely, most poor folks have no idea what REAL wealth looks like b/c they never get to see it...
but Diddy's flash dancing ass is all across the TV convincing them that he is ballin and even worst THIS IS HOW YOU ARE SUPPOSED TO LOOK/ACT if you're rich.

[T-Rex91]

Mar 22, 2010 11:37:53 GMT -5 LogAKAlly <3'n Keef said:

Mar 22, 2010 11:28:13 GMT -5 T-Rex91 said:

new money typically does

And unfortuantely, most poor folks have no idea what REAL wealth looks like b/c they never get to see it...
but Diddy's flash dancing ass is all across the TV convincing them that he is ballin and even worst THIS IS HOW YOU ARE SUPPOSED TO LOOK/ACT if you're rich.

SAD AND 100% ON POINT LOG

[LogAKAlly <3'n Keef]

^5 91


I wanted to share this with you guys...
we are often our own harshest critics, and that may serve a much needed purpose....but when we judge ourselves we must do so fairly.

(The Negro after Emancipation)
"He began to have a dim feeling that, to attain his place in the world, he must be himself, and not another. For the first time he sought to analyze the burden he bore upon his back, that dead-weight of social degradation partially masked behind a half-named Negro problem. He felt his poverty; without a cent, without a home, without land, tools, or savings, he had entered into competition with rich, landed, skilled neighbors.

To be a poor man is hard, but to be a poor race in a land of dollars is the very bottom of hardships. He felt the weight of his ignorance,—not simply of letters, but of life, of business, of the humanities; the accumulated sloth and shirking and awkwardness of decades and centuries shackled his hands and feet. Nor was his burden all poverty and ignorance. The red stain of bastardy, which two centuries of systematic legal defilement of Negro women had stamped upon his race, meant not only the loss of ancient African chastity, but also the hereditary weight of a mass of corruption from white adulterers, threatening almost the obliteration of the Negro home.

A people thus handicapped ought not to be asked to race with the world, but rather allowed to give all its time and thought to its own social problems. But alas! while sociologists gleefully count his bastards and his prostitutes, the very soul of the toiling, sweating black man is darkened by the shadow of a vast despair."

W.E.B. DuBois - The Souls Of Black Folk