2023 Recap

The Financial Family Reunion Summit 2023 was held online on February 11, 2023, and we are humbled and energized at the fabulous turn out! If you missed it you can visit our page dedicated to the Summit and learn more about our speakers and what we discussed. It was an amazing time with a marvelous group of people. Let’s take a look.

Attendance, Speakers, and Sponsors

Can you believe we had 632 Black and brown households register for our Summit? Of that number, 122 Black and brown households were in attendance. We can’t tell you what a blessing and an honor it was to educate these households about investing, building generational wealth, and so much more. 

Our speakers included well-known Black voices such as Ryan Boyles of the NFL, Ollen Douglass of The Motley Fool, Karrie Carden of Equip Advisory, Joshua Samuel of Coins for College, Raine Sellers, a financial analyst, and our very own Ruby Taylor of Financial Joy School. 

We were able to keep the event free of charge for the public due to our fantastic financial sponsors, and we’d like to give them a special thank you. Our sponsors include Trust & Will, the Nasdaq Entrepreneurial Center, and the Navy Federal Credit Union. 

Congrats to the Winners!

During our Summit, a few lucky households won our cash investment prizes. Let’s give a big round of applause to our winners:

• 1st Spin: Wayne Wheatley
  • $200
• 2nd Spin: Zhane Broomfield
  • $150
• 3rd Spin: Daniel Rayford
  • $200
• 4th Spin: Dr. Jackman
  • $1300
• Book Winner: Danielle Phillips; Book: Me Power by Dr. LaNysha Adams

What Our Attendees Had to Say

It is so good to hear from the Black and brown community with events such as these, to encourage and applaud all of us for getting educated together and taking that first step to growing our generational wealth. Here is some of what our attendees had to say about the Summit:

“Thank you for having events like this to help our communities learn about amazing companies like Financial Joy School!” ~Bria 

“My son and I really enjoyed the event. It was very informative.” ~Marie Roker-Jones

“This was amazing, Ruby! I enjoyed every moment. The kids are excited to sign the Pledge. My husband had started conversations about money: savings, investing, earning, and donating, and they really got into. Thanks for your leadership in this space.” ~Dr. Charmain Jackman

“Thank you so much for the awesome seminar!!” ~Wendy Hammond

A Financial Success

We’re calling our Financial Family Reunion Summit 2023 a huge financial success! If you didn’t get a chance to register or attend, don’t worry—we hold our Summit every February during Black History Month. What better time to celebrate our future by remembering how far we’ve come? Thank you to everyone who made our Summit great, and congratulations to all our winners. 

Here’s to next year!

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

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a $10 Million Reparations Budget

Becomes Law

It seems fitting that in a city called Providence, a $10 Million reparations budget has become a law. Mayor Jorge Elorza of Providence, RI, signed this budget into law on November 18th, 2022. Previously named the Covid-19 Equities Budget, this reparations budget was first met with deep skepticism, yet has seemingly become the template for other US cities to follow suit.

What It’s For

The city of Providence put together a Municipal Reparations Commission which decided how funds from the American Rescue Plan Act would be spent to close the racial equity gap. The City Council approved their proposal and the budget came before Mayor Elorza for his signature. The chairperson for the Commission, Mr. Rodney Davis, said at the signing that the budget was conceived “to close this wealth gap that is separating people because of the inequity in the systems around us.”

Elorza himself takes pride that his city was the first in the nation to sign a reparations budget into law, believing the actions taken by Providence should be the model for cities across the country to put reparations into practice. He firmly believes that placing Black voices within committees and commissions for city policymaking is key. These voices will then be able to best utilize and distribute reparations budgets nationwide. This strategy of Elorza’s in Providence is one-of-a-kind, and has not been matched by any other city in the United States.

The Relief it Offers

This $10 Million reparations budget includes funding for certain facets of education and financial stability. Homeownership is often only a dream for some Black and brown families, however with this budget, they will now have an easier time applying for—and being approved for—home loans. Financial literacy (which is why Financial Joy School exists) is another big winner with this budget. Closing the racial wealth gap needs financial education by necessity, and educating poorer communities is one of the first places to start.

Workforce training is also on the docket, to give Black and brown families the wisdom and knowledge of how to work in various industries, how to get hired at higher paying jobs, and how to apply at companies which offer amazing perks such as a 401k, health insurance for the whole family, and much-needed vacation time. 

Small businesses will also benefit from the reparations budget. Not only those already in business, but those that are mere concepts at present. Getting financial help to begin a business is hard enough, but the hill is even steeper for people of color. It takes more work and more sweat to climb your way out of a deeper hole, and the Providence Municipal Reparations Commission understands this. With Black voices on the Commission taking into account the everyday struggles of the average Black family in and around Providence, RI, there is a bright hope at the end of the tunnel that the racial equity gap will soon close in this region. This is a fantastic start and a commendable leap by Mayor Elorza and his team to give a voice to those in need and give financial aid where it’s needed most. Here’s to the rest of the country taking note and following in the footsteps of Providence.

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

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Racial Equity Commitment

Audit Report from JPMorgan Chase

Just over two years ago in October of 2020, JPMorgan Chase committed to bridging the racial wealth gap between white, Black, and brown families. This was called their $30 billion Racial Equity Commitment, also known as “REC.” The goal of this commitment was to help grow diversity in homeownership with affordable housing, promote small businesses, and create a workforce that would be more inclusive. Recently, JPMorgan Chase invited PricewaterhouseCoopers to perform an audit. How are they doing? Let’s find out.

REC’s Progress So Far

At the close of 2021, the progress of the REC had been reported to be upwards of $18.2 billion, well over half of the originally proposed $30 billion for the Commitment as a whole. The firm was able to quickly build their $18.2 billion by making refinancing more available and preserving affordable rental housing for minorities. This was done quickly while rates were low, which meant customers would save money on their mortgages. 

The REC created an initiative called the Preservation Program, which offered incentives to various building owners to keep their rentals affordable. This was done directly with their debt financing by offering rate discounts. This initiative has been key, as one of the largest hurdles for the REC was to secure affordable housing. 

These actions have led to tremendous progress for Black and brown families to secure home loans and affordable housing over the last two years. From 2020 to 2021 alone, JPMorgan Chase’s home lending portfolio for Black and brown families has doubled. 

Lending to Small Businesses

Not only is the REC dealing with the housing issue, they are also looking into making progress for small business loans. A business applicant’s race is not allowed to be collected as data by banks, however, the REC has counted lending progress among small business owners in the census tracts that have a majority of Black, Latino, and Hispanic populations. Therefore, the loans it counts toward the total of progress reported by the REC is with a more geographical approach, to give more loan opportunities to business owners within these communities.

The REC’s strategy for small businesses is to give greater access for businesses within minority census tracts to have access to more credit and business loans overall. Through the special purpose credit program, or SPCP, the REC’s vision has been realized in all 48 contiguous states. Not only does this program give more opportunities to minority business owners, but also helps to elevate poorer communities by bringing in new jobs and essential businesses.

A Long-Term Commitment

So far, the JPMorgan Chase Racial Equity Commitment has done much these past two years to close the racial wealth gap. The REC originally committed to five years, and it looks as if they are well on their way to hit the $30 billion goal. However, JPMorgan Chase has further committed themselves to this cause and assured investors, business owners, and homeowners alike that the work they’ve begun will continue well after their original 5-year plan. 

To build generational wealth takes long-term commitment and the firm understands that undeniable fact. The only way to establish long-term impact is to continue their work of ensuring racial equity, and it would seem JPMorgan Chase will do just that.

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

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Bridge the Racial Wealth Gap?

As we learned in a previous blog, President Biden’s student debt loan forgiveness program has been put on hold for the foreseeable future. A federal appeals court blocked the program nationwide by issuing a temporary injunction against it on November 14, 2022. Due to this decision, no new applications are currently being accepted. 

The Issue

While student loan forgiveness is a step in the right direction, the most this program would forgive is up to $20,000 for Pell Grant recipients or up to $10,000 for other federal loan borrowers. However, due to the racial wealth gap, Black families vastly trail white families when it comes to wealth and income. Because of this gap, Black families end up borrowing thousands more and thus get trapped in a vicious cycle. Blacks need to apply for greater loans, but have jobs with lesser income. This means it is almost impossible to pay back student loan debt in its entirety.

A higher loan means greater interest, which means the majority of payments are against the interest and not the principal. Brandeis University did a study in 2019 which found the average Black student, even after twenty years of paying down their debt, still owed close to ninety-five percent of the entire debt amount. This problem results in Blacks being three times as likely to default on their loans when compared with whites.

Student Loans Needs Reform

President Biden’s loan forgiveness program will help, but it’s a drop in the bucket compared to the full total of student loan debt. This mountain of financial burden is crushing many Black and brown families. Some have suggested eliminating interest altogether, which would help immensely as all payments would go toward the principal. 

Higher education is meant to give students the hope of a brighter future and a sustainable career, however even after school, Blacks are finding their salaries are still not enough to repay their loans. Student loans, then, become a trap, as decades spent repaying them results in an unattainable dream of being financially stable. Yet it seems one cannot advance in this world without higher education. 

Andre Perry, Senior Fellow of Brookings Metro said on a recent podcast of The Current that the public sector should be expanded to include higher education, which would mean four years at college would be free—as elementary school and high school. If this were the case, anyone anywhere could enroll and have the same shot at a fantastic financial future. 

Hope is On the Horizon

Even with Biden’s loan forgiveness program on hold, there is hope on the horizon. Discussion has begun with regards to outrageously soaring debt for higher education and the widening wealth gap between Black and white households. With the issue now in the public eye, it’s time to be vocal, elect officials, and demand the whole system be reformed—from top to bottom. 

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

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Financial Family Reunion Summit

On Saturday, February 11, 2023, in celebration of Black History Month, Financial Joy School will be hosting the first annual Financial Family Reunion Summit online between the hours of 12:30pm – 4:30pm EST. This free virtual event is open to anyone, both seasoned investors or someone who is interested in investing for the first time. 

About the Summit

The Financial Family Reunion Summit was conceptualized to educate Black and Brown families about their finances, investing, and how to build generational wealth. Sponsored by Trust & Will Estate Planning, the Financial Family Reunion Summit seeks to break the cycle of financial instability within the Black and Brown community. This toxic cycle has been brought about by legislation, discrimination, and systemic racism. The way out of the darkness is to walk in the light, and this financial summit aims at bringing the light of financial education to every Black and Brown family. 

Speakers

• Ryan Boyles – Investor, professional athlete, and real estate magnate
• Ruby Taylor – Founder of Financial Joy School and advocate for financial education
• Ollen Douglass – Founder and Managing Director of The Motley Fool Ventures
• Kerrie Carden – Certified financial planner and alumna of Stanford University
• Raine Sellers – Financial analyst and alumna of Norfolk State University
• Joshua Samuels – Founder/CEO of Coins for College 

Register and Win

Simply by registering and attending the Financial Family Reunion Summit, you are entered to win a variety of cash prizes for the purpose of investing. One lucky winner will receive $5000 in investment cash, along with a financial planner to help lead and guide the way along their investment journey.

Four other families will win cash for investments from $150 to $500 to $1000 to $1500! You must register AND attend the summit for your name to be added to the Winner’s Wheel which will be spun throughout the summit. You’ll need to be in attendance in order to win. Do not miss this fantastic opportunity!

Become a Sponsor

If you are interested in the summit and want to be a part of it all, consider becoming a sponsor! Your sponsorship will go far in educating Black and Brown families on how to become financially independent, break the paycheck-to-paycheck cycle, and learn how to build generational wealth. Let’s close the racial wealth gap by empowering each other to learn, grow, and build a fabulous financial future.

To Learn More

If you’d like to know more about the first annual Financial Family Reunion Summit, the speakers, or how to become a sponsor, please visit our dedicated webpage. Come and learn how to be inspired to build generational wealth in a productive and fun way. Don’t miss the opportunity to hear from amazing speakers while giving yourself the opportunity to win investment cash for you and your family to close the racial wealth gap. What are you waiting for? Register today! 

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

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Survey Black Investors Together

Ariel Investments, the Black-owned investment firm founded by John W. Rogers, Jr., in 1983, has partnered with investment titan Charles Schwab for 24 years to create a survey that studies the investment habits between Black and white Americans. What they have found over the years is that white investors have greatly outnumbered Black investors, however in 2022, they found that gap is finally closing. Yet it’s not closing fast enough.

More Education is Needed

One of the main factors of the lack of Black investors is education. Many Black individuals and Black families simply don’t understand or don’t know how to invest in the stock market. Thankfully with organizations such as Financial Joy School, which is dedicated to teaching Black and brown families how to build generational wealth, all hope is not lost. Not only do parents and older adults need to be taught how to invest, but the younger generation needs to start investing as soon as they can to have a decent retirement and obtain substantial wealth they can pass on to their children.

Life Signs in the Stock Market

It would seem that while education is the main barrier holding most Blacks back from investing, those who do invest are of the younger generation. Blacks in their 20s and 30s have decided to dip their toes in the waters of Wall Street and these younger investors are the ones closing the racial wealth gap. 

In 2022, sixty-three percent of investors were white while an amazing fifty-eight percent were Black. That is a spread of only five percent which means in the coming years, we could see Black investors meeting, and perhaps surpassing, their white counterparts.

Hopeful but Hesitant

While these signs of life in the stock market seem promising, Black investors are more prone to invest in higher-risk stocks and stocks they heard about on social media. While Black youth and families are investing, education is still needed to make smart decisions, wise choices, and invest their money with the goal of not making a quick buck, but propagating wealth for the future.

By making snap decisions and not considering a long-term goal, Black investors might actually be harming their chances for generational wealth rather than helping them.

Cryptocurrency

While Blacks are closing the investment gap, they are also twice as likely to invest in cryptocurrency, such as Bitcoin or Dogecoin, and that is due to investment platforms like Coinbase which makes it easy to do so. For more information about Coinbase, you can read our blogs on this investment platform here and here. 

Coinbase is popular due to its cheap starting price of only $25. It also comes with a debit card that’s branded by Visa which allows you to make purchases from your investment account as you would with a credit card or your bank account’s debit card. This seems like an amazing perk but be warned, having direct access to your investment dollars will not help you build wealth because you are spending it.

All in all, it is an amazing sight to see Black investors finally closing the wealth gap and taking a bite out of the stock market. In the coming years, we could see Black investors surge above and beyond white investors and be free from poverty once and for all.

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

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