Recently, I’ve spent some time thinking about how other people perceive my financial story to be based on my color. You’re probably wondering why this is on my mind. Well, to be honest, I think about this from time to time and a certain presidential candidate’s continued implication that basically African-Americans live in the ghettos has begun to irritate me…A LOT.
My Story
My parents were brought up in a small mid-western town that was surprisingly integrated for the times. My mom’s parents weren’t wealthy…but the extended family was made of hard working people who focused on paying off their homes as fast as possible and retiring with a pension. My mom remembers visiting her grandparents (my great-grandparents) in Missississippi at their home and watching as people brought them items in trade because they were considered well off for the times. My mom also remembers meeting her great-grandparents: a former African slave and a full-blooded Indian woman with hair down her back during those visits to her grandparents’ house.
My Parents
My dad’s family was a solid middle-class family. My grandmother was the first woman (and woman of color) to work a forklift at the plant that she was employed at. She and my grandfather worked like dogs to make sure that their kids had the best lives possible. Their home was paid off and my grandmother continues to live in that home today. They were very frugal and pretty happy with what they had. Gratitude played a huge role in their lives.
The small town that my parents grew up in is the type of town that John Cougar (Mellencamp) sings about. It’s super safe, people worked at factories, and going to Red Lobster is a big deal. It’s not a perfect town and it did have an area considered “the wrong side of the train tracks” but in comparison to other places, it’s a quaint town steeped in mid-western values.
Me
My parents divorced when I was seven. Like most divorced women that one life change drastically affected my mom’s financial story and we struggled. But, the interesting part of our struggle was the setting.
Colorado
My mom was working multiple part-time jobs while attending college and raising me. She never wanted me to live in a place that was: scary, unsafe, dangerous-so she sacrificed. But, the reality is she never lived in a place like that either.
We struggled financially but struggling in Colorado softens the blow of hard times. We had the views of the mountains, I won scholarships for: gymnastics, 8-week sleep away camp, Outward Bound (basically survivor for kids-Colorado people love this kind of thing). I also won scholarships or received generous discounts on: gymnastics lessons and private school.
I grew up in a town with a less than 1% black population and eventually moved to Denver with a 12% black population. The black people that I grew up around and knew were what many people would consider to be middle-class to wealthy. These families owned homes, were educated, traveled, and were comfortable doing a lot of the things that I grew up doing: learning how to horseback ride, ballet, going to the mountains, and the list goes on.
Boulder is known as one of the best places to live in the United States and this year Denver (where I live now) was ranked as the best place to live in the United States by Business Insider this year. But I would be remiss in mentioning that people of color are moving at a higher rate out of Denver to the neighboring city of Aurora which is a lot more affordable.
However
The truth is that there are certain financial trends that do affect me at a higher rate because of my color.
- Almost 50% of black women will lend financial support to relatives, impacting their own financial health. I’ve had this experience.
- Black women are the most educated group in America but earn less than their white counterparts. I’ve been there.
- As a woman of color it’s shown that we have difficulty paying off our larger debts due to our strained financial obligations and lower earnings on average. *aauw.org* Um…yep.
- When black women do marry their spouse may not make as much as they do and this earnings disparity has the potential to impact long-term financial goals. Will let you know how that goes when it happens.
- People of color are more likely to be preyed upon by financial institutions and charged higher rates on borrowing towards: homes, cars, etc. Strangely enough, I haven’t really had this experience but know of people who have.
- Inadequate retirement preparations as a result of stretched finances and lower income earnings. *New Republic*
The reality is that a lot of people of color are struggling. And I’ve struggled. We need more jobs, information and guidance on how to negotiate our wages, grow our wealth, and access to information that will help us establish financial foundations that will help us build generational wealth.
In living and sharing my multi-faceted financial story, I’m an example of the multiple layers to each person’s financial story and to look at me and assume because I’m black that there is only one possible story that I could be living… is insulting..and it shows a lack of awareness and ability to think deeply. We aren’t all living the same financial life.
I wrote this post because I’m sick of people not questioning the realities that they are shown and just accepting a one size fits all belief about the reality of black life in America.
- Yes, I have debt…but so do the majority of American people and I’m paying it off.
- I own a home. It’s little but it’s the classic small place in the best area possible.
- I have 2 degrees.
- I’ve traveled around the world.
- I’ve lived in Japan and France.
- I speak 3 languages (but my French is pretty shaky nowadays).
- I don’t care about fancy cars and have an inexpensive car that I paid cash for.
My goal with The Shop My Closet Project is to share my financial story and help educated people about money (regardless of color), share my mistakes, and financial wins. I didn’t realize that at the same time I would be adding depth and nuance to how people perceive black finances. And, I’m happy to do that.
We are rich, we are poor, and we are everything in-between. We need to earn more, save more, and grow our wealth. We have a lot of financial work to do and I am rolling my sleeves up to help change the financial lives of whoever I connect with. My money story is complex, complicated, and real.
And, I’ve never lived in the hood.
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What other languages do you speak? Japanese and French?
I’m intrigued by this! Personally, I hate stereotypes about Hispanics because I’m half-Hispanic. Just like you I find them insulting. Boo!
I speak: English, Spanish, and French 🙂 Stereotypes get on my nerves.
Thanks for sharing your thoughts and experiences, Michelle. I know you have inspired so many people all over the world. Keep it up!
Thanks Kelly! I appreciate your kind words 🙂