Tag Archives: HBCU financial education

Who Helps You With Personal Finance Decisions? How And Who To Choose For Your Financial Circle

Posted on January 9, 2026 by hbcumoney | Leave a comment

“The nice thing about teamwork is that you always have others on your side.” – Margaret Carty

Family protected by their financial “bodyguards”.

The majority of how people make financial decisions both big and small is often with the best of intentions, but as most of us know, that is also where the road to hell was paved.

In the realm of personal finance, intentions without information can be dangerous. Every day, millions make financial decisions that shape their futures—picking a credit card, accepting a student loan, buying a car, or investing in a 401(k). Yet, especially within African American households, these decisions are frequently made with limited knowledge, access, or trusted advisors. Generational poverty, systemic exclusion, and inconsistent education have all contributed to a reality where financial literacy remains low, and bad financial advice can sometimes pass for tradition.

The statistics are sobering: According to a 2022 FINRA study, only 34% of African Americans could correctly answer four out of five basic financial literacy questions, compared to 55% of whites. This gap is more than academic—it’s economic. Financial illiteracy compounds over time. It creates debt spirals, stifles homeownership, delays retirement planning, and weakens intergenerational wealth transfers. It also helps explain why the median Black household wealth remains only a fraction of that of white households.

So, if you’re navigating this landscape, how do you get the advice you need—especially when your circle may not have the right information either?

Let’s explore how to build a financial circle of influence—and more importantly, how to choose the right voices to include.

The Current (Lacking) State of Financial Literacy

In far too many cases, personal finance education starts after the mistakes are made—missed student loan payments, wrecked credit scores, or maxed-out credit cards. Even institutions designed to uplift—like Historically Black Colleges and Universities (HBCUs)—have been slow to require financial literacy as a foundational component of their curricula.

Imagine if every incoming freshman at an HBCU were required to complete a month-long intensive in budgeting, credit, and financial aid before stepping foot on campus. Not only that, but if financial education were embedded into their collegiate journey—customized to their majors, infused with real-world applications, and rooted in African American economic history and philanthropy—the results could be transformative.

Courses in credit management, entrepreneurship within your field, the basics of investing, and even African American economic institutions (from mutual aid societies to credit unions) could help create a generation that thinks differently—and acts differently—about money.

Until that infrastructure exists consistently, however, students and families are often left to fend for themselves, relying on informal networks, questionable online advice, or predatory “wealth influencers.”

That’s why building your own financial circle is more important than ever.

What Is a Financial Circle—and Why Do You Need One?

Your financial circle isn’t just about having a stock tip group chat. It’s your personal advisory board: a small group of 3 to 5 people you trust to help you make decisions ranging from the everyday to the existential.

Think of them as your informal “board of directors.” You don’t need them to be millionaires or financial advisors (though one or two wouldn’t hurt). But you do need them to be:

Financially aware: They have a basic grasp of sound financial practices.
Ethical: They’re not trying to sell you anything or exploit your trust.
Supportive: They understand your goals and will offer guidance in your best interest, not theirs.
Diverse in expertise: Ideally, each brings a different angle—entrepreneurship, investing, real estate, credit, budgeting, etc.

The value in this diversity is simple: no one person has all the answers. An investor might advise risk, while a credit specialist might urge caution. You need to weigh both perspectives to make the right decision for you.

Who Belongs in Your Circle?

There are five archetypes worth considering:

1. The Budget Master

This person might not have flashy investments or a six-figure salary, but they manage what they have with laser precision. They know how to stretch a dollar, pay off debt, and stick to a plan. They understand discipline and sacrifice—essential traits in building wealth, not just income.

Why you need them: For insight into monthly budgeting, avoiding lifestyle creep, and making responsible day-to-day decisions.

2. The Wealth Builder

This is your investor friend. Maybe they dabble in the stock market, own real estate, or have a retirement plan that’s growing nicely. They’ve made mistakes, but they’ve learned from them—and they’re willing to share.

Why you need them: They help you think long-term. They understand compound interest, asset allocation, and the psychology of investing.

3. The Entrepreneur

Whether it’s a side hustle or a full-time enterprise, this person knows what it means to take calculated risks. They can offer insight into taxes, business credit, scaling a company, or diversifying income streams.

Why you need them: Because job security is not what it used to be—and entrepreneurial skills are often the key to economic mobility.

4. The Credit Whisperer

This person has mastered the FICO system, understands debt instruments, and knows how to use credit to their advantage. They’re also likely well-versed in financial regulations and tools like balance transfers, refinancing, and consolidation.

Why you need them: To help you avoid common traps—and use credit as a tool, not a trap.

5. The Cultural Capitalist

This person is grounded in the historical and cultural aspects of Black economic life. They can talk about Black Wall Street, the role of Black banks, and how to give back without going broke. They remind you that financial decisions aren’t just about you—they’re about us.

Why you need them: To stay grounded in your values and understand how your success contributes to a broader community legacy.

How to Choose the Right People

The first step to building a financial circle is intentionality. Here are a few principles:

1. Don’t Confuse Proximity with Expertise

Just because someone is family or close doesn’t mean they’re qualified to advise you. Seek out people who have demonstrated results—consistent savings, strong credit, a stable business—not just opinions.

2. Look Beyond Titles

A financial advisor with a fancy office isn’t necessarily better than your aunt who retired early on a teacher’s pension. The best advisors aren’t always licensed—they’re often experienced, candid, and care about your outcomes.

3. Vet for Integrity

Before you invite someone into your financial circle, ask: Are they selling me something? Are they pushing an agenda? Can I trust them to tell me the truth—even when it’s uncomfortable?

4. Value Perspective over Perfection

Your circle doesn’t have to be made up of financial rockstars. It has to be honest, dependable, and thoughtful. Sometimes the best advice comes from someone who made a mistake—and is willing to share the lesson.

Where to Look

Here are a few places to start identifying people for your financial circle:

Community and alumni networks (especially HBCU alumni groups)
Professional associations (Black MBA, Black CPA organizations)
Libraries (many now offer financial literacy sections)
Local credit unions and Black-owned banks (many host workshops or financial education seminars)

And yes, if you can afford one, a certified financial planner (CFP) can be a game-changer. But even that relationship should be approached with due diligence and comparison—interview multiple advisors, ask for their fiduciary status, and never be afraid to walk away if the fit doesn’t feel right. Verify an individuals’s CFP certification and background at https://www.cfp.net/verify-a-cfp-professional.

Designing Your Own Financial Literacy Curriculum

Until institutions mandate courses, you’ll have to become your own professor. Here’s a four-year self-guided plan:

Year	Topics	Resources
Year 1	Budgeting & Credit Basics	Your Money or Your Life, NerdWallet, Experian Boost
Year 2	Investing 101	The Simple Path to Wealth, Morningstar, Robinhood Learn, Bogleheads
Year 3	Entrepreneurship	The Lean Startup, SBA.gov, Score Mentors
Year 4	Philanthropy & Estate Planning	Decolonizing Wealth by Edgar Villanueva, NAACP Legacy Programs

Add to that regular podcasts (The Economist, Financial Times), YouTube channels (like Minority Mindset), and community financial challenges (like savings goals, no-spend months, or stock clubs), and you’ll be ahead of the curve.

Final Thoughts: Advice vs. Empowerment

There’s a subtle but powerful difference between advice and empowerment. Advice tells you what to do. Empowerment teaches you how to think.

Your financial circle should do both—but lean into the latter. The best financial guidance is that which helps you ask better questions, weigh competing options, and make decisions aligned with your values and goals.

Ultimately, the journey to financial health isn’t just about tools, apps, or strategies—it’s about relationships. And the most important one is the one you build with your future self.

So, who helps you with personal finance decisions? The better question might be: Who will you invite to help you get where you want to go?

Choose wisely.

HBCU Money Presents: African America’s 2024 Annual Wealth Report

Posted on December 20, 2025 by hbcumoney | 1 comment

African American household wealth reached $7.1 trillion in 2024, marking a half-trillion-dollar increase that signals both progress and persistent structural challenges in the nation’s racial wealth landscape. While the topline growth appears encouraging, the composition reveals a familiar pattern: wealth remains overwhelmingly concentrated in illiquid assets, with real estate and retirement accounts comprising nearly 60% of total holdings. The year’s most dynamic growth came from corporate equities and mutual fund shares, which surged 22.2% to $330 billion—yet this represents less than 5% of African American assets and a mere 0.7% of total U.S. household equity holdings, underscoring how far removed Black households remain from the wealth-generating mechanisms of capital markets.

The liability side of the ledger tells an equally sobering story. Consumer credit climbed to $740 billion in 2024, now representing nearly half of all African American household debt and growing at more than double the rate of asset appreciation. This shift toward unsecured, high-interest borrowing—particularly as it outpaces home mortgage debt—suggests that rising asset values are not translating into improved financial flexibility or reduced economic vulnerability. What makes this dynamic even more troubling is the extractive nature of the debt itself: with African American-owned banks holding just $6.4 billion in combined assets, it’s clear that the vast majority of the $1.55 trillion in African American household liabilities flows to institutions outside the community. This means that interest payments, fees, and the wealth-building potential of lending relationships are being systematically siphoned away from Black-owned financial institutions that could reinvest those resources back into African American communities, perpetuating a cycle where debt burdens intensify even as the capital generated from servicing that debt enriches institutions with no vested interest in Black wealth creation.

ASSETS

In 2024, African American households held approximately $7.1 trillion in total assets, an increase of more than $500 billion from 2023, with corporate equities and mutual fund shares recording the fastest year-over-year growth from a relatively small base, even as wealth remained heavily concentrated in real estate and retirement accounts—together accounting for more than 58% of total assets.

Real Estate

Total Value: $2.24 trillion

Definition: Real estate is defined as the land and any permanent structures, like a home, or improvements attached to the land, whether natural or man-made.

% of African America’s Assets: 34.2%

% of U.S. Household Real Estate Assets: 5.1%

Change from 2023: +4.3% ($100 billion)

Real estate remains the dominant asset class for African American households, accounting for over one-third of total household assets. While modest appreciation continued in 2024, ownership remains highly concentrated in primary residences rather than income-producing or institutional real estate, limiting liquidity and leverage potential.

Consumer Durable Goods

Total Value: $620 billion

Definition: Consumer durables, also known as durable goods, are a category of consumer goods that do not wear out quickly and therefore do not have to be purchased frequently. They are part of core retail sales data and are considered durable because they last for at least three years, as the U.S. Department of Commerce defines. Examples include large and small appliances, consumer electronics, furniture, and furnishings.

% of African America’s Assets: 8.8%

% of U.S. Household Durable Good Assets: 6.2%

Change from 2023: +3.3% ($20 billion)

Corporate equities and mutual fund shares

Total Value: $330 billion

Definition: A stock, also known as equity, is a security that represents the ownership of a fraction of the issuing corporation. Units of stock are called “shares” which entitles the owner to a proportion of the corporation’s assets and profits equal to how much stock they own. A mutual fund is a pooled collection of assets that invests in stocks, bonds, and other securities.

% of African America’s Assets: 4.7%

% of U.S. Household Equity Assets: 0.7%

Change from 2023: +22.2% ($60 billion)

Defined benefit pension entitlements

Total Value: $1.73 trillion

Definition: Defined-benefit plans provide eligible employees with guaranteed income for life when they retire. Employers guarantee a specific retirement benefit amount for each participant based on factors such as the employee’s salary and years of service.

% of African America’s Assets: 24.4%

% of U.S. Household Defined Benefit Pension Assets: 9.7%

Change from 2023: +7.5% ($40 billion)

Defined contribution pension entitlements

Total Value: $880 billion

Definition: Defined-contribution plans are funded primarily by the employee. The most common type of defined-contribution plan is a 401(k). Participants can elect to defer a portion of their gross salary via a pre-tax payroll deduction. The company may match the contribution if it chooses, up to a limit it sets.

% of African America’s Assets: 12.4%

% of U.S. Household Defined Contribution Pension Assets: 6.0%

Change from 2023: +4.8% ($40 billion)

Private businesses

Total Value: $330 billion

% of African America’s Assets: 4.7%

% of U.S. Household Private Business Assets: 1.8%

Change from 2023: +3.1% ($10 billion)

Other assets

Total Value: $770 billion

Definition: Alternative investments can include private equity or venture capital, hedge funds, managed futures, art and antiques, commodities, and derivatives contracts.

% of African America’s Assets: 10.9%

% of U.S. Household Other Assets: 2.7%

Change from 2023: +6.9% ($50 billion)

LIABILITIES

“From 2023 to 2024, African American household liabilities rose by approximately $100 billion, with consumer credit, now representing nearly 48% of all liabilities, driving the majority of the increase and reinforcing structural constraints on net wealth accumulation despite rising asset values.”

Home Mortgages

Total Value: $780 billion

Definition: Debt secured by either a mortgage or deed of trust on real property, such as a house and land. Foreclosure and sale of the property is a remedy available to the lender. Mortgage debt is a debt that was voluntarily incurred by the owner of the property, either for purchase of the property or at a later point, such as with a home equity line of credit.

% of African America’s Liabilities: 50.3%

% of U.S. Household Mortgage Debt: 5.8%

Change from 2023: +4.0% ($30 billion)

Consumer Credit

Total Value: $740 billion

Definition: Consumer credit, or consumer debt, is personal debt taken on to purchase goods and services. Although any type of personal loan could be labeled consumer credit, the term is more often used to describe unsecured debt of smaller amounts. A credit card is one type of consumer credit in finance, but a mortgage is not considered consumer credit because it is backed with the property as collateral.

% of African American Liabilities: 47.7%

% of U.S. Household Consumer Credit: ~15.0%

Change from 2023: +10.4% ($70 billion)

Other Liabilities

Total Value: $30 billion

Definition: For most households, liabilities will include taxes due, bills that must be paid, rent or mortgage payments, loan interest and principal due, and so on. If you are pre-paid for performing work or a service, the work owed may also be construed as a liability.

% of African American Liabilities: 2.0%

% of U.S. Household Other Liabilities: ~2.8%

Change from 2023: 0% (No material change)

Source: Federal Reserve

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Debt Fit for a Queen (and Her King): Why Beyoncé and Jay-Z’s $110 Million Mortgage Is a Lesson in Black Wealth Strategy

Posted on August 29, 2025 by hbcumoney | Leave a comment

“The wealthy don’t fear debt they master it. While others pay to own, they borrow to control.” — HBCU Money

In the hills of Bel Air, where the gates are high and the price of privacy even higher, a royal couple reigns not with crowns or thrones, but with compound interest, limited liability companies, and a mastery of capital structuring. This month, Beyoncé and Jay-Z made headlines again, not for a new album or tour, but for a second mortgage. The couple whose combined net worth now exceeds $3 billion, per Forbes secured an additional $57.8 million mortgage on their $88 million Bel Air estate. This raises their total mortgage debt on the property to $110.6 million. For many, it triggered confusion: Why would billionaires take out debt especially this much? They own the intellectual property rights to chart-topping albums, entire music catalogs, clothing lines, venture funds, and streaming services. They’re not short on liquidity. But for those fluent in institutional wealth-building, the move is textbook. It’s what banks do. What private equity does. What families like the Rockefellers, Rothschilds, and yes, now the Carters, do: they leverage good debt to expand their control over assets, preserve liquidity, and legally reduce taxes. As the headlines obsess over the couple’s $637,244 monthly burn rate including mortgage and property taxes we must step back and understand the real play at work.

The Structure of Power: Debt as a Wealth Instrument

There are two kinds of debt in America, debt you drown in, and debt you climb on. The former is predatory and suffocating: payday loans, credit card interest, subprime mortgages. The latter is engineered and liberating: investment real estate, operating capital, bridge financing. This second category, good debt is what powers Wall Street, Silicon Valley, and, increasingly, the portfolios of Black billionaires. When Beyoncé and Jay-Z financed their Bel Air estate rather than pay in cash, it wasn’t a lack of funds it was a maximization of strategy. With interest rates still historically low by long-term standards, the effective cost of borrowing is cheaper than the opportunity cost of deploying equity elsewhere. That $110 million in borrowed capital is likely earning multiples elsewhere in touring infrastructure, private equity ventures, tech startups, and, of course, real estate. The Carter empire does not rely on liquidating assets to make acquisitions. It builds on leverage, like any institution should.

Cash Is King, Debt Is the Horse It Rides

Jay-Z once rapped, “I’m not a businessman. I’m a business, man.” And that business understands that cash flow is oxygen. In a high-inflation, high-yield environment, holding liquidity is more valuable than owning a paid-off house in Bel Air. Let’s model it simply:

Suppose the couple borrowed $110 million at a 3.5% interest rate.
The annual cost is approximately $3.85 million.
That same $110 million deployed into touring, film production, or venture investments yielding 10% generates $11 million annually.

Net result? Over $7 million in arbitrage.

This is how institutions think. Not in terms of how much they “own,” but in how much capital they control and multiply. African American families and institutions should take note: Being debt-free is not synonymous with being economically powerful. Control, not ownership alone, is the more sophisticated metric of power.

The Bel Air Property: Trophy or Tool?

It’s tempting to dismiss the Bel Air estate as just another status symbol, a personal flex. But that’s the wrong lens.

For the Carters, real estate like music catalogs, business equity, and IP is a balance sheet line item. This home, aside from its lifestyle function, serves several institutional purposes:

Collateralization – The home is a high-value, appreciating asset. It anchors future lending.
Credit Enhancement – With reliable payment performance, it increases the couple’s access to cheap capital.
Tax Optimization – Interest payments on a mortgage of this type can be partially deducted, even under current tax caps.

Moreover, the couple reportedly pays $100,343 monthly in property taxes, more than the annual income of the median U.S. household. But again, context matters. Their global income and asset base far outpace such obligations, and that property tax provides further tax deduction possibilities depending on structure.

A Note to the Emerging Class: Institutional Thinking Required

The divide in America today is less about income and more about how wealth thinks. Many African American households are still taught to see debt as something to eliminate completely often because of the trauma associated with its misuse. The wealth class, by contrast, uses debt as a financial tool.

The Carters didn’t get here by mistake. Their trajectory offers lessons that should be taught in HBCU finance classrooms and African American family wealth summits alike:

Leverage is not a vice if it is structured.
A mortgage is not debt when the return exceeds the cost.
Liquidity is more powerful than ownership in times of economic opportunity.
Institutions survive because they think beyond the personal.

This is especially important for HBCU alumni and African American families looking to build dynastic wealth. Too often, debt is only associated with student loans and credit cards. Rarely is it discussed as an accelerant for asset acquisition, tax minimization, or capital scaling.

Building the Empire: What the Rest of Us Can Learn

You don’t need a Bel Air zip code to think like an institution. The Carter model can be scaled:

Buy Investment Property
Use mortgage debt to buy a duplex, triplex, or quadplex where tenants cover your mortgage and generate passive income.
Preserve Your Capital
Avoid putting 100% down on assets. Leverage 20–30% and maintain the rest for emergencies or investments.
Learn the Tax Code
Understand how to deduct interest, depreciate properties, and structure your finances to reduce liability legally.
Think Generationally
Set up trusts, LLCs, and estate plans. Don’t just buy for today—structure for tomorrow.
Teach the Next Generation
Share strategies at the dinner table. Incorporate wealth-building into family conversations and HBCU alumni networks.

From Debt-Averse to Debt-Aware: A Cultural Pivot

For African America, there must be a shift from being debt-averse to being debt-aware. Not reckless, but informed. Not afraid, but empowered. Beyoncé and Jay-Z’s move may make for juicy tabloid fodder, but the real story is about capital strategy. With every refinance, with every debt restructuring, they’re deepening their institutional footprint. We often praise their performances, their music, their style. But perhaps we should spend more time studying their moves not just on stage, but on paper. Their empire isn’t built on vibes it’s built on vehicles, vision, and valuation strategy.

The Carter Codex

The narrative shouldn’t be, “Beyoncé and Jay-Z are spending $637,000 a month.” It should be, “Beyoncé and Jay-Z have leveraged a property to unlock hundreds of millions in investment capital while maintaining their lifestyle and optimizing their taxes.” That’s the story HBCU students in finance departments should be analyzing. That’s the story African American financial advisors should be breaking down. That’s the story Black families gathering for holiday dinners should be dissecting. Because wealth isn’t what you show it’s what you can withstand, what you can structure, and what you can scale. In a country that often denies African America the full benefits of capitalism, the Carter family is rewriting the playbook. Not with debt as a burden. But with debt as a bridge.

Disclaimer: This article was assisted by ChatGPT.