Addressing the Wealth Gap at the Household Level
Critical to closing the racial and ethnic wealth gap is addressing the policies and practices that have historically and continue to create opportunities for some to accumulate wealth and create barriers for others. While economic disparities are often boiled down to income inequality, income is but a snapshot in time. It does not account for wealth transfers nor does it capture a family’s debt load, savings, or liquid or fixed assets. Therefore, it does not capture a family’s ability to weather financial storms, pay for significant life expenses such as a home or college tuition, nor does it capture a family’s ability to transfer wealth to the next generation.
For these reasons, the Growing Household Wealth strategy considers the three core components of what makes up a family’s wealth – the input of income, the accumulation and transfer of assets, and proportional amount debt.
Advancing the policies and practices that translate income, education, and work into wealth.
Recognizing that income stability and growth and educational attainment serve as a critical foundation into wealth creation, we also know that wealth inequality by race and ethnicity continues to persist even for middle-income educated households. As such, the Trust advances policies and practices that translate income, education and work into wealth, such as affordable post-secondary options and worker justice.
Increasing wealth-building assets in communities of color and for people of color.
This includes supporting equitable opportunities for people to access responsible banking products, purchase and sustain homes, and grow their businesses, as well as advocating for investments in our children, such as baby bonds and child savings accounts.
Combatting extractive wealth-stripping financial practices through stronger regulations and consumer protections.
The Trust supports efforts to reform policies, such as punitive municipal fines and fees systems, and regulate predatory lending through research, advocacy, and promoting safe alternative lending and banking products.
Follow the links below to learn more about our approach and funding opportunities: