Early Black crypto advocates want to maintain a seat at the table they helped to set, as Wall Street eyes big opportunities in the digital currency sector. People who did some of the earliest work spreading cryptocurrency’s message to the Black community are being increasingly pushed out of the space. With Just under one in four, about 23%, of Black people owning this caché currency, compared to 11% of White Americans, and 17% of Hispanics, how important is it for the Black community to be included as more legacy financial institutions increasingly enter the arena?
One of football’s biggest sensation is on its way back with Dwayne “The Rock” Johnson resurgence of the XFL in February 2023 and its providing more details on its eight new team names and logos. All 43 games of the 2023 season will air across Disney-owned networks including ESPN, ESPN+, FX, and ABC as part of a five-year domestic media rights deal. With Johnson’s new iteration of the XFL comes new rules, new television contracts. All 43 games of the 2023 season will air across Disney-owned networks including ESPN, ESPN+, FX, and ABC as part of a five-year domestic media rights deal.
One of the most popular ways consumers plan to celebrate the holiday is through outdoor decorations, coming only second to candy. Nearly 70% of consumers plan on celebrating Halloween this year, sending projected spend on the category to $10.6 billion, up from $10.1 billion in 2021, according to a survey conducted by Prosper Insights & Analytics and the National Retail Federation. Tapping into the $1.6 trillion that African American’s possess, millennial consumers plan to spend $255 on Halloween, followed by Gen Z ($202), Gen X ($145) and baby boomers ($58).
Wall Street seems to have pumped the brakes on Initial Public Offerings (IPO) as the markets continue their roller coaster run. Nearly 87% of companies that went public in the U.S. last year are trading below their offering prices, according to Dealogic. Herein lies the problem, fund managers, who tend to shy away from new issues if recent ones they have bought are performing badly. This could keep IPO activity in the doldrums for the remainder of the year.
Millionaire’s are on the rise with 5.2 million people achieving this status last year globally, and nearly half of them residing in the United States. Credit Suisse’s latest annual wealth report found that “this is the largest increase in millionaire numbers recorded for any country in any year this century.” There are about 1.79 million African American millionaires in the country, according to Statista. Just how much has the wealth gap opened up with this new batch of millionaires?
As a number of neobanks, also known as digital banks, come online they are building products catered to very specific markets. When you consider the Black community makes up 18.2% of the unbanked and 31.1% of the underbanked group in the U.S., according to the Federal Deposit Insurance Corporation, neobanks can be a real game-changer for this demographic. Is it possible for these new digital banks to make a measurable impact on financial inequality and address issues of access, fairness, and fees that have often had a discriminatory legacy?
Most Black parents begin saving for college before their child is 10 years old and this could be a future key to closing the racial wealth gap. Unfortunately, only 16% of African American parents are saving for college using a 529 plan, which is like a prepaid tuition program, according to Northwestern Mutual. Even though parents are saving more for college now than ever before, their preparedness could still use improvement, and a solid 529 plan could put their children on the path to success.
The Social Security Administration (SSA) has finally given its recipients an 8.7% raise after four decades, and record high inflation. Retirees will see their monthly payments increase by $146 to an estimated average of $1,827 for 2023. When you consider the average annual SSA income received by African American men 65 years and older was $14,409 compared to $12,806 for African American women, this raise can’t come soon enough.
Fast growing “buy-now, pay-later” (BNPL) companies have caught the U.S. Consumer Financial Protection Bureau’s attention as it (CFPB) plans to start regulating the industry. BNPL companies like Klarna and Affirm(AFRM -15.57%) have caused regulators to worry that their financing products are harming consumers. With the BNPL market expected to reach $3.98 trillion by 2030, according to Allied Research, here-in lies the issue, many consumers don’t realize BNPL plans are a form of credit or a loan, and 27% of Black households are late on paying their debts.
Accessing the internet in Africa is now the most expensive continent in the world to do so. Purchasing a gigabyte of mobile internet data can set African’s back as much as $35. While smartphone penetration has spiked over the past decade in Africa, progress in reducing the cost of getting online has not moved at the same pace.
In this ‘The Road Home’ conversation, cultural trendsetters, investors and entrepreneurs will be discussing the importance of Black culture within the business ecosystem, to bridge the divide between the market’s rapidly expanding expectations and their daily reality. We’ll dig into the data and the long-term implications that culture plays for innovative solutions. Through strategic approaches we will break down what it takes along the road to building a strong future.
Startups have taken off during the pandemic with majority Black areas playing a huge role in their success. A new report from Third Way found that in counties where over 75% of residents are Black, applications for new businesses increased 198%. The U.S. Census Bureau’s Business Formation Statistics data reveals the pandemic-era startup surge may have been more pronounced for minority entrepreneurs as the labor tide continues to shift.
The 120 plus year old non-profit Goodwill has a new strategy for thrifters will now be able to do some serious treasure hunting online as well. Thrifters can rejoice as the company just launched an online business as part of a newly incorporated venture called GoodwillFinds. If you consider that the Bureau of Labor Statistics found that Black people spend around 3% of their household expenditures on clothes, this could be a great way to save some money without leaving your home. This is happening at a time when surging inflation, at 8.3%, is pushing shoppers to be thriftier.
Any day now the Biden administration is finally going to drop the applications forgiving $10,000 in student loans per borrower making less than $125,000, which is a huge win for students of color. The U.S. Department of Education has said its application for student loan forgiveness will go live in early October, meaning we could start to see millions of dollars in student debt being wiped out nationally. Here’s how you can start preparing for when the big moment occurs that has the potential to start closing the racial wealth gap.
Redlining, racial housing covenants, predatory lending, and neighborhood destroying highway construction have all contributed to a wealth gap in which white families have roughly 10 times the net worth of the average Black family. Land ownership is the primary source of wealth and means of accessing capital in America. So, will the real estate industry ever address its role in the racial wealth gap?