Recent headlines detail student loan forgiveness legislation, with current events highlighting that Black communities carry more student loan debt than the average American. While the role of systemic racism and history of injustice against Black communities can not be ignored, having an elevated degree of financial fluency is key to finding and creating solutions to economic challenges that affect our communities disproportionately - such as credit card debt and higher interest rates. A deeper understanding of earning, spending, saving, investing, borrowing, and safeguarding our dollars are the fundamentals of financial fluency and at the heart of NABA values.
We believe financial fluency can lead to generational wealth by empowering Black households and communities to take control of their finances, even within an economic system in which we are often exploited.
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The Role of Black Financial Planners and CPAs
Black financial planners and advisors have a crucial role to play in helping Black communities become financially fluent. Financial fluency is a critical life skill that enables individuals to make informed decisions about their money and create long-term financial security.
Unfortunately, Black Americans have historically been denied access to quality financial education and advice, which has contributed to significant wealth disparities between Black and White households. According to a recent study, the median wealth of Black households is just one-tenth of the median wealth of White households.
Black financial planners and advisors can help close this wealth gap by serving as a trusted source for much-needed financial education and guidance to Black communities. Data shows that Black households are better off financially with the assistance of Black financial professionals to advise communities of color. According to Forbes, Black financial planners play a large role in closing the racial divide in retirement readiness in this country. (See the National Institute on Retirement Security’s “Race and Retirement Insecurity in the United States.”) Similarly, Black certified financial planners (CFPs), with a deeper understanding of where relative Black wealth stands in this country, may be better equipped to help Black communities navigate certain race-based challenges (for example, Black people are denied mortgages at twice the rate of the general population).
Black financial planners can also serve as role models and mentors, inspiring others to take control of their finances and build a brighter future.
For this reason, we must emphasize the importance of Black financial institutions and practitioners, who bring a perspective to the table that inspires trust in a way that better serves Black communities.
How NABA Encourages Financial Fluency
With a new look and an updated name, NABA has recently expanded our mission and focus beyond accounting professionals to uphold all Black Business Leaders, including the empowerment of financial, business, marketing, and information technology professionals, at any point in their respective career paths.
NABA has long provided support for Black professionals on the long and winding road toward licensure as Certified Public Accountants (CPAs). Additionally, our longstanding ACAP initiative has recently undergone a makeover —the Accounting Career Awareness Program founded in 1980—has funneled high schoolers with an interest in accounting through an educational pipeline that prepares them for college majors in finance, accounting, and other business-related fields.
Another essential partnership that provides higher visibility for Black financial professionals involves the Diverse Organization of Firms (DOF): a NABA affiliate association that connects Black CPAs with financial services firms to provide accounting, finance, and consulting to corporations and small businesses, nonprofit organizations, and government.
With financial fluency, Black individuals can take control of their finances, plan for their future, and build wealth for themselves and their families. Financial fluency is an essential step toward achieving economic equity in the United States.
This is a content marketing post from a Forbes EQ participant. Forbes brand contributors’ opinions are their own.
