Financial literacy for Black women: How we can close the racial gap

Lately, women hear a lot about gaps. When it comes to financial wellbeing as women of color, it's more critical than ever in today's world.

Financial literacy is no longer optional in today’s society, especially for Black women. Do you want to secure the bag? Then you got to do what it takes to stay on top of your money game. You need to slog the basics of financial topics like managing debts, saving, investing and budgeting.

In this article

Wondering where you can gain this knowledge? It’s International Literacy Day and we wanted to pitch in on the importance of financial literacy for Black women. We will also walk you through how the racial gap in financial literacy can be closed. 

Let us elaborate that for you, the median net worth of a single Black woman is $20 as compared to that of a single White woman which is $15,640 and $28,900 for single White men.

This means that the net worth for women of color is lesser than a penny for every dollar of wealth owned by single White men. And this is despite women of color having college and graduate degrees. 

What financial wellbeing means?

Financial wellbeing gives you a sense of financial security and freedom of financial choice—both for the present and the future. It is a personal state that can be achieved regardless of how high or low an income can be.

It gives you a sense of control over your day-to-day finances and allows you to make the best life choices for yourself.

How do we get to financial freedom?

If you’re an empowered Black woman, empower other women. If you’re not, learn from empowered women.  Empowering Black women through financial literacy not only helps improve their financial health but their entire family’s. 

Most Black women are affected by the racial wealth gap—and that gap often leads to stress, depression, and sometimes trauma even. And a situation like that doesn’t get better because of its perpetuity.

That is why preventing the racial wealth gap from widening further is crucial. And it starts with you! So here’s how you can stop this vicious cycle.

Financial planning

Black women need financial confidence. You have to know how to handle any financial situation that comes your way. You can’t afford to live feeling guilty and condemned by your past mistakes. Instead, act now with confidence and make the right decisions for your life. You cant start with, 

  • Writing down your short-term and long-term goals and your reasons for achieving those goals. Jotting down why you want to achieve something will help prioritize your goals. For example, your long-term goal could be to buy a home to pass down to your family (that’s your “why”). This will help you save consistently. Your short-term goals can be checking your credit report and score and working on increasing your score.  Once your goals are set, shut out naysayers, even your own negative self-talk. Get on with investing and managing your money. You’re the best person for the job.
  • Figure out how much money you have, how much income is coming, and where it’s going out. In other words, learn to budget! Keeping track of your money helps you put a plan in place for wiser decisions. 
  • Take time to learn and establish financial confidence. Don’t even look back on the mistakes you’ve made or what you don’t know or don’t understand. Forgive yourself and move forward to get to where you want to be. Make some bold decisions, if you stumble give yourself grace and learn from your mistakes, if you don’t, well, good on you!!


You need to understand investing — there’s no way around it. Set yourself up to learn the basics of investing. Read everything you get your hands on. Ask questions and start having financial conversations with people who know the subject better. 

More importantly, take action and implement what you are reading. Study your investment options and create a retirement investment plan. Because when you invest you will be able to achieve a sense of financial equality and independence. 

Estate planning

Now that you’re working on building wealth, know that you should also strategize on how to protect your wealth. Without an estate plan in place, your family will go into a frenzy of fighting—when the unfortunate happens. If you have done your estate planning, your designated representative will be able to act on your behalf when the time comes.

A possibility

While it may seem challenging to achieve financial wellness as a woman of color, it is not impossible. All you need is a little bit of intention to succeed, clarity on your financial goals, and the ability to start taking action.

Because at the end of the day, no one cares more about your financial wellness than yourself — and Line, of course. We are vouching for you, and we are here to support you, now and always.

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This page is purely informational. Line does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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