If you’re like many Americans and think that talking about money is more taboo than politics or religion, then you likely have generational trauma surrounding open discussions about finances and wealth.
The layers of shame and discomfort compound as we grow older. Add systemic injustices that aim to keep minority communities removed from power, and it’s no wonder that many Black families steer clear of talking about money.
Rather than trying to overcome the discomfort all at once, you can start with family money discussions that center on the value of financial literacy for Black Americans.
The Taboo of Talking Money
While many families have open conversations about complicated topics, broaching money talks still seems taboo.
Does Money Harm Relationships?
There are many reasons why talking about finances is taboo, but for Black women and families in particular, there is a pervasive story that money harms relationships. UK Magazine Chaud points out that in many Black communities, “talking openly about salaries, investments, or financial wins is often perceived as boastful or inappropriate.”
When Black families know that having close, community relationships is key to success, it can be challenging to risk discussing finances and potentially ruining those connections.
Just the Facts
Anecdotally, it might seem true that Black families are more hesitant to talk about finances with their children and peers, but do the facts support that? According to the Global Financial Literacy Excellence Center report from 2020, Black households have a lower median net worth compared to the overall population. But that certainly doesn’t equate with fewer hours worked or less energy invested in their family’s future. Black families are more likely to be working multiple jobs and more likely to have student loan debt from higher education. When Black families do have assets to pass down, they are still 50% less likely to have estate plans and wills than other groups.
While these disparities come from many systemic sources, one of the paths forward involves embracing honest, open family money discussions.
How Talking Leads to Tools
The importance of financial literacy can’t be overstated. Research shows that higher levels of financial literacy are positively correlated with wealth building. Forbes points out that financial literacy allows individuals to make smarter short- and long-term decisions that lead to current wealth accumulation and open the doors to building generational wealth. If talking about money in your family feels uncomfortable, start to break the taboo by looking at money talks as a learning and teaching opportunity.
Informal Education and Financial Literacy
Something that Black families have long known is that much of a child’s foundational education happens at home and in the community. Learning family traditions is just as important as science class at school. Somewhere along the way, financial literacy in families dropped off the list of essential skills to learn at home. And that needs to change.
The informal education that friends and family can offer each other about finances is invaluable. Talking about money in Black families doesn’t just mean sharing facts; it means guiding peers and the next generation. Research shows that we learn best when we’re interacting with others who make us feel safe and valued. You don’t have to know about investment portfolios in a room full of young undergrads; you can learn alongside family and friends, then share that wealth of knowledge.
Modeling Daily Choices
A key component of financial literacy is balancing smart short- and long-term choices. Family money discussions can start with accessible conversations like making a monthly budget, saving for a vacation, or spending allowance dollars. Modeling a healthy relationship with money doesn’t have to revolve around formal lessons; daily conversations that happen naturally will help kids learn to think and ask questions about their own finances from a young age.
Generational Wealth for a Community
Generational wealth passes down in a family line, but it’s also largely about communities. When Black families break the taboo around money talk, they’re also opening the doors to building larger community power through financial literacy and empowered choices.
Intentional Spending
Wealth accumulation can feel individual and personal, but it truly happens in a community. Knowing how to find the best mortgage rates doesn’t matter if you can’t live in the neighborhood where your family feels connected. One part of the solution? Be loud, proud, and honest about your personal and community financial goals. Build each other up to make intentional choices with community spending, investing, and wealth planning. A good way to start is by introducing financial literacy conversations and classes in neighborhood locations.
Seeing Your Dollars at Work
Opening up conversations about finances with your family and community also means you have the excellent opportunity to see your dollars at work in your neighborhood every day. As you’re modeling how to save for a trip with your kids, they can also see you choose to patronize Black-owned small businesses. They’ll see that spending a dollar in their own community can help build generational wealth more directly.
Breaking money taboos is a long process, but it can start with family money discussions that embrace the joy that comes from using knowledge as power.
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