A Financial Guide For Black Families Eyeing Generational Wealth

Black History Month will see many brands across the world making monetary gain off the Black dollar, but isn’t it about time we start keeping it in the family? We’re talking about money, of course, and building generational wealth by learning how to invest it the right way. That’s where we come in with this helpful guide to achieving generational wealth, specifically for Black families, given the occasion at hand. From advisors and key digital outlets to practices we can all adapt to save more — do yourself a serious favor and take notes as you scroll. Or, you know, just bookmark the page for a go-to reference.

Your choice, fam — we’re just here to help.

RELATED: Celebrate Black History Month Like It’s Going Out Of Style — Because It Very Well Could Be

Let’s get you all started with the “why” as per usual. Even though it should be quite obvious — more money? hello? — there should be a general understanding of where it makes sense to even begin your journey. In an economy that can oftentimes feel like an uphill battle for any race, African Americans usually have a proverbial Draw 4 card thrown on top of that based on a series of preexisting factors, including historical bias in the workplace, regional prejudice in cities with a heavy minority population and everyone’s favorite: good ol’ systemic racism!

So, first and foremost, take a look at how to better understand why.

How Black Families Build Wealth

It all starts at home, literally. Homeownership is one of the primary ways that Black families can keep money within the family while solidifying a consistent place that all relatives can consider the base. According to Urban Institute, homeownership has the potential to actually outperform stocks and bonds financially if done right. As they put it, “the returns for homeownership, not including the tax benefit, are higher than the after-tax returns on a bond index and on the S&P 500.” They also go on to add other beneficial gains like paying little or no capital gains tax when a home appreciates in value, and the lack of tax paid on “imputed rent” — essentially, that’s the return homeowners get simply for living in their own home, which normally is taxable for those paying rent to a landlord.

However, don’t sleep on stock investing as well for building generational wealth. A diversified investment portfolio that includes stocks, bonds and retirement accounts can go a long way in generating long-term wealth. Financial service firms with certified experts who are trained to generate and grow money are your best bet. From your trusted banking service to specialized firms like LPL Financial, it can be as simple as scheduling an appointment.

Of course, the one most people go for is entrepreneurship. We couldn’t agree more, but always remember to get into it for the right reasons and with the right game plan. For those of us who don’t have an uncle named Rev Run, gaining startup capital may seem like the hardest hurdle in the process. However, many public services provide monetary support in the form of small business loans and grants. At the same time, some even offer networking opportunities that get you in the right rooms to get the job done on your own terms, like the entrepreneur you’re becoming. Good examples include the Small Business Administration, the NAACP Black Entrepreneurship Program, and networking through the U.S. Black Chamber of Commerce, all of which are invaluable resources.

Best Banking Services for Black Families

Now that you’ve got a plan for your money, the next step is choosing a trusted place to plant, nurture and watch it grow — think of this as the type of tree that money actually does grow on. Thankfully, the choice is yours based on the state you live in. Those in Alabama, for example, have BHM Bank (formerly Alamerica Bank as of 2025) and the Bridgeway Credit Union, for example. In a more populous city like NYC, there’s the fan-favorite Carver Bank and Brooklyn-based Concord Federal Credit Union for you to utilize.

The good people over at NerdWallet have a full state-to-state breakdown of every option currently at your melanated fingertips.

Credit-Building Tools Black Families Can Use

Whether it’s a bad credit score or you’re one of the infamous “ghost creditors” still sitting at zero, there are tools at your disposal that can get you on the road to 650 and greater. The primary outlet is applying for a secured credit card, which operates like any credit card but requires a security deposit that becomes your credit limit. Most major banks offer the option to add a secured card, which can substantially raise credit scores by reporting positive credit history and result in a higher total amount of available credit at lower interest rates.

Those who aren’t on the homeowner wave can look into rent reporting as a way of building credit as well, in addition to credit builder loans that are designed to specifically show how trustworthy you can be when it comes to paying back in a timely fashion.

Investment Platforms for Black Families

Firms dedicated specifically to finding a common ground between money and melanin are the gems in this whole ordeal. When it comes to any questions, tips, tools, virtual, in-person and all the happy stress that comes with growing wealth, an investment platform will feel like your very own Pokémon Center. Interactive Brokers, ByBlack, Black Woman Owned, Eat Okra and Official Black Wall Street are just some of our faves.

Financial Services That Support Building Generational Wealth

As we leave you off wiser and hopefully better overall than when you first arrived, here’s one final block of helpful financial guidance. There are institutions dedicated specifically to generational wealth, offering private investments and detailed estate planning to support the mission at hand. Top-notch dealers in this area include Sandlot Partners, Vanguard, J.P. Morgan and Mercer Advisors if you mean business.

Good luck to all of our people out there who want more for their lives and those closest to their hearts. May the money be with you!

SEE ALSO:

Top 10 Vacation Destinations For Black Families In 2026

These 4 Cities Offer The Cheapest Rent For Black Families Looking To Relocate