The Village Method (TVM) helps scholars develop an entrepreneurial & innovative mindset, rather than consumers-centric thinking. We help them understand the foundations of economics and begin making wise financial decisions from a young age. Financial literacy helps our scholars see the value in their education and understand their potential to achieve economic success.
Why is this important?
With the 2007 recession, the housing crisis and soaring unemployment rates left Black America’s wallet trapped in the crosshairs of the United States’ financial crisis, the lack of generational wealth in the African American community has never been in sharper focus.” Generation One: The Search for Black Wealth by Lamar and Ronnie Tyler
A report for the Federal Reserve Bank of St. Louis titled “The Demographics of Wealth: How Age, Education and Race Separate Thrivers from Strugglers in Today’s Economy“ by William R. Emmons and Bryan J. Noeth provides startling insight into exactly where Black families stand in comparison to others in the United States.
- Black families ranked last when it comes to median wealth.
- The median wealth of a White family in 2013 was $134,008 but for a Black family, the median wealth was $11,184.
- Blacks have little liquid assets to take risk or deal with financial emergencies as they arise.
The wealth of a family dictates where they can live, what Summer time activities they can enjoy, what extracurricular programs they can afford, and overall how they appreciate life experiences. It’s not enough to see that there are “the haves” and the “have-nots”. The Village Method sees that a stronger foundation in economic and financial literacy can break the continued cycle of a lack of generational wealth in the Black community.
In 2013, the head of a Black family was likely to be younger and less educated than the average White family; the Black family also has less assets to access in the event of an emergency. Census data show that the Black homeownership rate continued to fall through the end of 2014.
With volatile income, living paycheck to paycheck, and having little-to-no savings, the Black community still maintains a solid position as the number one consumer group in America. Purchasing the newest fashion and top technology today is seemingly more important than securing a future for the next generation tomorrow.
At TVM, we believe we can bridge the gap by informing our members of how to build generational wealth, banking, stocks & bonds, 529 plans, college preparation, entrepreneurship, investing, homeownership, credit scores, etc.