Analysis: European Americans unemployment rate pushes lower to 3.5 percent, its lowest rate in the past five months for the second month in a row. Asian Americans increased 20 basis points and Latino Americans decreased 30 basis points from December, respectively. African Americans unemployment rate increased 10 basis points from December. This is the second highest rate in the past five months.
AFRICAN AMERICAN UNEMPLOYMENT RATE BY GENDER & AGE
AFRICAN AMERICAN MEN: 6.9%
AFRICAN AMERICAN WOMEN: 5.4%
AFRICAN AMERICAN TEENAGERS: 9.5%
AFRICAN AMERICAN PARTICIPATION BY GENDER & AGE
AFRICAN AMERICAN MEN: 69.0%
AFRICAN AMERICAN WOMEN: 62.5%
AFRICAN AMERICAN TEENAGERS: 25.3%
Analysis: African American Men saw an increase in their unemployment rate by 130 basis points and African American Women remain unchanged in January, respectively. African American Men increased their participation rate in January by 80 basis points bringing a halt to a four month decline. African American Women increased their participation rate in January by 10 basis points. African American Teenagers unemployment rate decreased by an unprecedented 1,070 basis points. African American Teenagers saw their participation rate decrease by 420 basis points in January, their lowest participation rate in the past five months.
African American Men-Women Job Gap: African American Women currently have 806,000 more jobs than African American Men in January. This is an increase from 757,000 in December.
CONCLUSION: The overall economy added 143,000 jobs in January while African America added 234,000 jobs. From Yahoo Finance, “Recent data has shown the labor market slowing but not rapidly deteriorating, as layoffs remain low. Economists have largely argued the recent string of labor market data fits the “broadly stable” labor market narrative Fed Chair Jerome Powell described in his most recent press conference on Jan. 29. “It’s a low-hiring environment,” Powell said. “So if you have a job, it’s all good. But if you have to find a job, the job-finding rate, the hiring rates have come down.”
“Everything that I’ve gone through informs me and my opinions in a way, I guess because I am a child of segregation. I lived through it. I lived in it. I was of it.” – Samuel L. Jackson
One thing most financially literate people realize is that it is not how much you make, but it is how much you keep. Those who are of a wealth building mindset realize it is not how much you keep, but how much of your capital is actually working to make you wealthier without your labor being attached to it. African American individuals, households, and institutions struggle in both cases, but mightily in the latter. Most African American wealth, as highlighted by the amount of time the African American dollar remains in our community (less than 6 hours), does little to no work for the wealth building of those three entities. A major reason for this is that African American individuals, households, and yes, even institutions put little to none of their money in African American institutions – ironically.
Economic Disparities
“According to a report by the Federal Reserve, the median net worth of African American households headed by someone aged 55-64 (who would generally be considered Baby Boomers) was around $39,000 in 2019. This is substantially lower than the median net worth of European American households in the same age group, which was around $184,000 in 2019. It’s important to note that there is significant variation within both groups, and wealth is influenced by a range of factors including income, education, and access to resources.”
Insider Intelligence gives a generational demographic breakdown reporting that, “Baby boomers were the largest living adult population until 2019. According to the US Census Bureau, US boomers have remained the second-largest population group in 2022, comprised of 69.6 million people ages 58 to 76.” And Statista reports that there are 43.26 million Boomer households meaning that approximately 4.8 million of those are African American. This then puts African American Baby Boomer wealth at approximately $187.2 billion – but what of it?
Each eldest generation will push wealth forward one way or another. Where it flows though can be largely up to the person. Some will push it to the next generation of family and friends, charities and organizations, and there are a host of other options of where money can find itself as one begins to consider their legacy both in the here and now or from the beyond. One things is crystal clear though from a Brookings Institute study, African Americans are falling behind with every passing generation, “30% of European American households received an inheritance in 2019 at an average level of $195,500 compared to 10% of African American households at an average level of $100,000.” African Americans both receive 50 percent less than their European American counterpart and European Americans are three times more likely to get an inheritance than their African American counterpart – but again what of it?
While the wealth of even African American Baby Boomers is not that of their counterparts, it should have the opportunity to make far more considerable impact than it probably actually will. As African American baby boomers age, a significant transfer of wealth is expected to occur. This presents an opportunity for younger generations to invest in education, home ownership, and entrepreneurial ventures. However, research indicates that many African American families face systemic barriers, such as lower access to financial resources and education, which could impact how this wealth is utilized and preserved.
Despite the considerable wealth held by baby boomers, economic disparities persist within the African American community and its institutions. Issues such as income inequality, lack of business ownership, access to African American owned financial institutions, limited access to financial literacy resources, and a disconnected institutional ecosystem can hinder the effective management and growth of inherited wealth. Addressing these disparities will be crucial in ensuring that future generations can leverage this wealth for long-term benefits.
Philanthropy and Community Investment
Many African American baby boomers are inclined to support causes that uplift their communities. This philanthropic inclination could lead to increased investment in African American nonprofits, education initiatives, and other community organizations. By directing funds towards institutional development, these donors can help address systemic issues and create lasting change.
Financial Planning and Literacy
The management of this wealth will largely depend on the financial literacy of both the current baby boomer generation and their heirs. Increasing access to financial education, resources, and African American owned financial institutions is essential to ensure that wealth is not only preserved but also strategically invested. Programs aimed at enhancing financial connectivity between African American households and African American financial institutions within the African American community can play a significant role in maximizing the impact of this wealth.
The fate of the $188 billion in wealth held by African American baby boomers is not just about the transfer of assets; it’s about how those assets can be utilized to build a stronger future for the community. By focusing on education, philanthropy, and addressing systemic barriers, there is potential for this wealth to make a profound impact on the lives of future generations. Ensuring that this wealth is effectively managed and directed towards meaningful causes will be crucial in shaping a more equitable and prosperous future for the African American community. In the end, the only real question is how much of the $188 billion will end up in African American institutions. Whether those organizations be African American social, economic, or political institutions is up to the household, but this is the most acute potential for institutional transformation that African America will have seen since 1865.
Disclosure: This article was assisted by NOVA AI and ChatGPT.
Analysis: European Americans unemployment rate pushes lower to 3.6 percent, its lowest rate in the past five months. Asian Americans decreased 30 basis points (lowest among all groups) and Latino Americans decreased 20 basis points from November, respectively. African Americans unemployment rate decreased 30 basis points from November. Over the past five months this is African America’s median unemployment rate.
AFRICAN AMERICAN UNEMPLOYMENT RATE BY GENDER & AGE
AFRICAN AMERICAN MEN: 5.6%
AFRICAN AMERICAN WOMEN: 5.4%
AFRICAN AMERICAN TEENAGERS: 20.2%
AFRICAN AMERICAN PARTICIPATION BY GENDER & AGE
AFRICAN AMERICAN MEN: 68.2%
AFRICAN AMERICAN WOMEN: 62.4%
AFRICAN AMERICAN TEENAGERS: 29.5%
Analysis: African American Men saw a decrease in their unemployment rate by 40 basis points and African American Women decreased by 50 basis points. African American Men decreased their participation rate in December by 50 basis points, a fourth month decline. African American Women increased their participation rate in December by 10 basis points. African American Teenagers unemployment rate increased by 210 basis points. African American Teenagers saw their participation rate increase by 170 basis points in December, their highest participation rate in the past five months after their lowest in five months last month.
African American Men-Women Job Gap: African American Women currently have 757,000 more jobs than African American Men in December. This is an increase from 640,000 in November.
CONCLUSION: The overall economy added 256,000 jobs in December while African America added 84,000 jobs. From CNN, “The selloff comes as the economy added 256,000 jobs in December, far outpacing expectations of around 153,000 jobs. While strong job growth signals a healthy economy, it raises the question of how soon the central bank needs to cut interest rates again. Additionally, President-elect Donald Trump’s proposed tariff policies, including reports of declaring a national economic emergency to impose widespread tariffs, has spooked investors, sending bond yields surging.”
“I have found that among its other benefits, giving liberates the soul of the giver.” – Dr. Maya Angelou.
If you’ve been considering joining or starting an philanthropy club with your family, friends, or fellow HBCU alumni but are unsure if it’s the right move, you’ve come to the right place. The answer is it is absolutely the right move.
A few facts regarding African American organizations and nonprofits:
43.5% of Black-led nonprofits operate without any paid, full-time employees, and 45.7% have no paid, part-time employees.
Philanthropy clubs can be a powerful tool for leveraging African American philanthropy from like-minded individuals. They not only enhance your financial literacy and knowledge about African American and African Diaspora organizations but also empower you to make informed philanthropic decisions. By pooling your resources with your family, you can collectively grow your impact African American nonprofits finances and outreach, fostering a sense of confidence and control over institutional development and empowerment.
Keep reading as we discuss why you might want to start an investment club and the steps you’ll need to take.
Why You’ll Want to Start a Philanthropy Club?
One of the biggest reasons to start an philanthropy club is that they want to learn and share ideas with people who share their values. It makes sense to start a philanthropy club with family, friends, or HBCU alumni because, most of the time, your values are well-aligned. Yes, you may have different opinions, but your values are generally on the same page.
Philanthropy clubs can be a great way to learn about African American causes, organizations, and nonprofits. Because some members may be more seasoned donors, givers, or active in the nonprofit space, they can share their knowledge on certain topics.
Philanthropy clubs are a great way to magnify small donations by each member into a large donation by a focused collective. the increase the impact associated with investing. However, with the rise in so many commission-free brokers, the fees for making a high volume of trades aren’t as big of a deal.
How to Start an Investment Club
If you’re ready to get your philanthropy club with family, friends, or HBCU alumni off the ground, you’ll want to follow these steps to ensure success:
1. Find and Organize Members
Finding members for a philanthropy club is generally one of the most challenging steps. However, it’s a little easier if you’re looking to start one with your family, friends, or HBCU alumni. Either way, ensuring the fit is correct before jumping in is crucial.
A solid philanthropy club should have at least 5 people but no more than 15 or 20. You must have enough ideas, but too many can make things more difficult. Each person will be required to identify a cause, organization, or nonprofit. Then, each month, a different member will present their cause, organization, or nonprofit to the group.
Before extending an invitation to different anyone, ask yourself a few questions. These will help you see if it will be a good fit.
Do you trust the person you’re thinking of inviting to be consistent and involved?
Will they bring research and ideas to the meetings?
Are they organized?
Are they going to pay the monthly donation on time?
2. Determine Your Goals
Once you have your members set, you must agree on your goals. Most clubs’ goals will be making donations and learning from others. But how are you going to get to that point?
It’s important to take some time to understand each member’s philanthropic approach. Are they willing to take on more risk or prefer to be more conservative? Do you want to stick with only well known organizations, or are members interested in startup organizations as well? Do they only want to give to domestic organizations? Or are they willing to give to African Diaspora nonprofits working in Haiti, Jamaica, UK, or Africa?
Developing a plan of attack and ensuring that each member is on the same page will be vital to success.
3. Decide How You Want To Give
Deciding on if you want to setup a legal structure for your philanthropy club is important because potentially over time, your club can setup an endowment that invest donors money and that can grow into a significant and sustainable amount of money. Having the necessary legal protections is going to be important. If your philanthropy club decides to actually invest its donations into investments that will grow over time so that the club has larger and more sustainable sums to give is important to think about.
The other option is to simply give everyone the option to donate on their own once the cause, organization, or nonprofit is decided upon. This route relies on the honor system or some type of peer accountability towards giving.
Each philanthropy club must do what works best for them and also realize that the club is allowed to evolve over time.
The Bottom Line
Philanthropy clubs are a great way to pool your donor funds and learn from other members. Just be sure that you join a group where everyone is willing to listen to ideas and pull their own weight within the club.
Analysis: European Americans unemployment rate has been at 3.8 percent for four of the past five months. Asian Americans decreased 10 basis points and Latino Americans increased 20 basis points from October, respectively. African Americans unemployment rate increased 70 basis points from October. This is the highest African American unemployment rate in the past five months.
AFRICAN AMERICAN UNEMPLOYMENT RATE BY GENDER & AGE
AFRICAN AMERICAN MEN: 6.0%
AFRICAN AMERICAN WOMEN: 6.0%
AFRICAN AMERICAN TEENAGERS: 18.1%
AFRICAN AMERICAN PARTICIPATION BY GENDER & AGE
AFRICAN AMERICAN MEN: 68.7%
AFRICAN AMERICAN WOMEN: 62.3%
AFRICAN AMERICAN TEENAGERS: 27.8%
Analysis: African American Men saw an increase in their unemployment rate by 30 basis points and African American Women increased by 110 basis points. African American Men decreased their participation rate in November by 60 basis points. African American Women decreased in their participation rate in November by 30 basis points. African American Teenagers unemployment rate increased by 90 basis points. African American Teenagers saw their participation rate decrease by 120 basis points in November, they are now at their second lowest participation rate in the past five months.
African American Men-Women Job Gap: African American Women currently have 640,000 more jobs than African American Men in November. This is an decrease from 693,000 in October.
CONCLUSION: The overall economy added 220,000 jobs in November while African America lost 276,000 jobs. From Yahoo! Finance, “Hurricanes and a strike by Boeing (BA) workers weighed heavily on the October report, which was revised to show there were 36,000 jobs created last month. The unemployment rate stood at 4.1% in October. Job growth for September was also revised higher on Friday, with revisions now indicating the US economy added 56,000 more jobs than initially reported over those two months.”
HBCU Money 