A strong generational wealth strategy can set up Black families for long-term mobility. While generational wealth often refers to financial assets, it can mean so much more. And for Black families working through systemic barriers, honing financial literacy skills, determining health and caregiving plans, and looking toward the future are all part of the package. 

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Read on to uncover an expanded understanding of what generational wealth can mean for Black families. 

Redefining Wealth

Assets like bank accounts, equities, and businesses can lay the foundation for generational wealth. But these assets can’t grow without healthy individuals at the helm. That’s why today’s approach to building generational wealth needs to include a commitment to staying physically and mentally sharp. Family members need to schedule routine checkups, prioritize screenings, and seek help when situations become overwhelming. 

Further, Black parents must consider future or ongoing caregiving needs. As older generations age, they’ll need help with anything from completing routine tasks to attending medical appointments. Older adults can be more vulnerable to online scams, too, meaning family members must have the digital literacy skills to guide older adults toward sound budget decisions. Families should allocate resources to fund in-home care or create a calendar to assign responsibilities among family members. That way, one person will not be burdened with every duty. Developing a plan with input from all family members ensures a smoother path that saves money, time, and stress. 

Exploring Long-Term Financial Planning

Not every individual has access to an employee-sponsored retirement account. And not every individual is fluent in traditional investing strategies. Fortunately, financial institutions understand this. They also understand that healthcare costs, taxes, and other obligations complicate financial planning for Black families. 

Digital tools can help families make better financial plans that consider life expectancy, income, and other details. And with access to investments in real estate and small businesses, today’s Black families have more options when it comes to financial strategies. Turning to an investment management company, such as Abacus, can help guide families toward the right asset selections for their unique situations. 

Acknowledging Barriers

Generational wealth isn’t as easy to establish for underrepresented and marginalized groups. Black families have dealt with discriminatory practices in everything from housing situations to healthcare access. These barriers have meant that many families must do more to establish a solid foundation for future generations. But with more tools and resources available today, families can develop a strong plan with real room for growth. Honing digital literacy skills and making sure that the youngest family members learn them, too, can help overcome longstanding hurdles. 

Setting the Stage for Generational Wealth 

Generational wealth is about more than investing money and amassing finances. Today’s Black families see generational wealth as a broader strategy that considers health needs, digital literacy, and retirement. Families must form plans to support aging parents while helping younger family members develop a sense of financial responsibility. With an approach that considers more than just money, Black families can establish a secure foundation for future generations to find success.