How to Create Generational Wealth
for the BIPOC Community
The term “generational wealth” refers to assets passed from one generation of a family to another. Those assets can include stocks, bonds, and other investments, as well as real estate and family businesses. In recent years generational wealth has become a focal point in discussions about the racial wealth gap and the increasing concentration of wealth in the United States because it plays a substantial role in both.
New data from the 2019 Survey of Consumer Finances (SCF) show that long-standing and substantial wealth disparities between families in different racial and ethnic groups were little changed since the last survey in 2016; the typical European American family has eight times the wealth of the typical Black family and five times the wealth of the typical Hispanic family.
Nonetheless, there are several ways for a family to build generational wealth. At the World Academy for Innovation and Entrepreneurship (WAIE), we teach not only the young scholars how to build their wealth portfolio but we support the family members of the young scholar in gaining knowledge too. Some methods of building generational wealth that young scholars learn about are:
A cryptocurrency is a digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by a centralized authority like the Federal Reserve.
A stock is a type of investment that represents an ownership share in a company. Investors buy stocks that they think will go up in value over time. If the stock goes up in value it can then be sold for a profit.
Entrepreneurship is a way of life, a revolutionary way of enhancing your manner of critical thinking. Whether you work solo or in a team, it creates an asset that can put your family in a better situation for years to come.
For many families, housing is the biggest component of wealth. Homeownership has also been found to yield strong financial returns on average and to be a key channel through which families build wealth.
Rental properties include Accessory Dwelling Units (ADUs), secondary homes and apartment complexes, and commercial real estate. Capitalization on rental properties for short-term and long-term renting are key.
Participation in retirement accounts and retirement plans is another important channel through which families build wealth, and they provide financial security in retirement. These assets include IRAs, DCs, and DBs.
The World Academy for Innovation and Entrepreneurship (WAIE) is a 501(c)3 nonprofit, asynchronous, culturally responsive, digital learning, independent school that provides youth with real-world education in an effort to create generational wealth for them and their families. However, WAIE is much more than just the academic knowledge provided to create generational wealth for BIPOC communities but a holistic and tailored approach to success for each young scholar!
people are employed by BIPOC-owned businesses
18% of the market
in business ownership while BIPOC makes up 32% of the population.
in new equity investments were provided to BIPOC businesses while a $7,858 average was provided to non-BIPOC businesses.