In this report, we evaluate the current state of wealth for Black households. Despite a history of exclusion and discouragement, Black households have continued to build wealth over time. But when compared with white households, the average Black household has much less wealth when measured using the traditional net worth evaluation. The relatively lower amount of wealth reflects lower levels of asset ownership, lower asset values, and greater total debt compared with assets accumulated. These outcomes underscore the need for action in support of building Black wealth. But another key finding of this report is also understanding that Black people might also think about wealth differently outside the traditional measure of net worth. Our findings suggest that although net worth remains a vital component of concepts of wealth, the definition itself is not a comprehensive or monolithic definition of wealth itself. By understanding wealth, research and policy action, both public and private, can ensure that policymakers’ efforts meet the needs of the people they wish to serve.

Why This Matters

Comparing wealth outcomes and measures as defined in our study can help policymakers develop a better understanding of how Black households think about wealth. This can also help policymakers better target policies toward the outcomes Black families want to achieve and place greater agency in their hands.

What We Found

Compared with the wealth of the median Black family, the typical white family has accumulated more. But this form of wealth reflects a narrow definition focused on net worth. Compared with what Black people told us in our interviews, the concept of net worth across Black families is not a complete measure of Black wealth. These research findings and interviews were incorporated into this report and expanded our definitions of wealth to include

• health outcomes and measures;
• social capital, including family and professional relationships; and
• the legacy of economic participation.

The definition of net worth only partially describes wealth among our interviewees. By forming an extended understanding of wealth based on interviewees’ responses, the power to pursue and achieve wealth is more squarely in their hands.

How We Did It

We begin with a mixed-methods study of quantitative and qualitative data. Our quantitative data are primarily drawn from the Survey of Consumer Finances, a robust survey with an established reputation for capturing data measuring wealth and wealth inequality. These data are used to outline the current state of Black households’ wealth and their financial portfolios and to compare their outcomes with those of white households and highlight disparities in asset accumulation.

These quantitative data are supplemented with qualitative data collected from seven interviews. Data collected from these interviews supplemented the quantitative data by helping us understand how a subset of Black people defined wealth. These interviewees were primarily Black professionals in the business and entrepreneurial industries seeking to advance their own career development and financial goals while also providing support to other professionals.