The Importance of Educating Black Youths on Financial Literacy.

Importance of Educating Black youths on Financial Literacy

Financial literacy in the black community, especially among black youth, is critical. In this day and age, African Americans contribute significantly to the United States' economic establishment; however, compared to white counterparts, they are still behind in financial wellness. The stresses of financial insecurity more often than not lead to a low standard of living, poor spending, excessive credit card use, debt, and bad investment decisions.

The lack of financial literacy among youth can also lead to crime and violence. Black American youth face high incarceration rates and have less ability to access high education compared to white Americans. This is the main reason for their lower economic mobility.

Teaching black youth financial literacy is the best way to equip them with the knowledge and skill needed for efficient money management. In addition, learning financial literacy can help black youth to understand the technicalities involving investments, saving, good credit, homeownership, and building a business.