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Go beyond financial literacy"Gone are the days that we can hide behind the illusion that more financial literacy is enough," says Rahkim Sabree, AFC, financial therapist and counselor. Currently, 25 states require financial literacy education for students; however, rarely, if ever, does financial literacy address larger systemic issues that exist. Black students owe an average of 188% more than what white students borrowed by the fourth year after graduation. One 2016 study found that if current trends continue, closing the wealth gap would take more than 200 years. AdvertisementYounger Black Americans have now become the fastest-growing demographic of new investors in the stock market.

Persons: —, Martin Luther King, Jr, Moritz Kuhn, Moritz Schularick, Ulrike I, Rahkim Sabree, We've, Kristin Afelumo, Lazetta Rainey Braxton, Braxton Organizations: Service, Business, Federal Reserve Bank of Minneapolis, Black, National Bureau of Economic Research, Economic Policy Institute, AFC, Bureau of Labor Statistics, Netflix, Lazetta, Associates Locations: America, Evanston , Illinois, Black

However, as a financial professional and homeowner myself, I still see renting as a more conducive and efficient option to invest and build wealth. In this situation, the renter would have a higher return on investment, with $1.8 million compared to the homeowner with just $617,000. Even though the homeowner's payment stops once the mortgage is paid, the return on investment from just the down payment and maintenance expense favors the renter. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. Also, the homeowner still pays property taxes, which may increase over time, and still has to contend with annual maintenance.

Persons: it's, —, Joel Ohman, Jeffrey Zhou, doesn't, Get, Steven Gilbert, Gilbert, Says Ohman Organizations: Service, Gilbert Wealth, & $

☆ I thought I knew how to handle money as a financial advisor, but a conversation with a 30-year-old millionaire completely changed my mind
▼ + stars: | 2023-06-22 | by ( Kevin L. Matthews Ii | Stephanie Hallett | Read More | ) www.businessinsider.com time to read: +7 min

As a financial advisor, I saw wealthy clients follow the same path to millionaire status. But my strategy changed when I met Grant Sabatier and realized I wasn't enjoying my money the way I wanted to. Spend and enjoy the majority of your money now or delay those luxuries in exchange for a comfortable retirement in the future. He continued telling me that at age 25, he sat down and listed the 10 things that made him happy. I realized that I needed a lot less money than I thought to be happy," said Sabatier.

Persons: Grant Sabatier, —, He'd, Sabatier, I've, Read Organizations: Service, New York City Locations: New, Oklahoma

Popular passive income ideas include online courses, as well as renting out property, tools, and equipment to others. Even though the goal is passive income, there may be a bit of active work required at the start. However, many passive income ideas may require a significant upfront investment of time and labor to generate profits later. See Insider's picks for the best budgeting apps >>With the hundreds of possible passive income streams available, which ones are the best for 2023? Bonds and bond fundsInvesting with bonds or bond funds can be another way of generating passive income.

☆ First Gen Z congressman, Maxwell Frost, says he was denied an apartment in DC over bad credit
▼ + stars: | 2022-12-08 | by ( Juliana Kaplan | Kayla Gallagher | ) www.businessinsider.com time to read: +4 min

Gen Z Congressman Maxwell Frost tweeted Thursday he got denied from a DC apartment for bad credit. "Just applied to an apartment in DC where I told the guy that my credit was really bad. He's not alone: Credit card balances have been on the rise, especially for Gen Z, as the cost of living keeps soaring. But as Insider's Kevin L. Matthews II reported, there's a "credit gap" between Black and white borrowers, further powering the racial wealth gap. That can further the gap in homeownership rates between Americans of color and white Americans.

Without a good credit score, buying a home or borrowing money is more difficult, holding Black Americans back from building wealth. To understand the impact that credit scores have on the racial wealth gap, it is important to understand the history of the credit system. On a 30-year, $200,000 mortgage with a FICO credit score between 700 and 759, one could expect to receive a 2.56% interest rate. But a person with a credit score between 660 and 679 could end up paying an additional $14,914 — 677 is the average credit score for African Americans compared to white Americans at 734. Indeed, the credit gap is just another symptom of systemic racism, and finding ways to achieve parity in employment and wages would go a long way to closing the credit gap.

At age 2, my son is on track to have 75 times more wealth when he turns 18 than I did. Saving money is important, but generational wealth is built through investing and sustained by good habits, like communication and consistency. This article is part of "Money That Lasts," an ongoing series about generational wealth from Personal Finance Insider. Discussing those mistakes is critical because generational wealth can be obtained by avoiding the same mistakes as those who have come before you. While not an exhaustive list, these three tips are proven to help create generational wealth in just one generation.

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