Yujin Baik
Korea International School
Abstract
This paper looks into the long-standing wage and wealth gaps between African Americans and other ethnic groups in the U.S., pointing to the lack of financial knowledge in Black communities as a key factor. These inequalities, which have their roots in generations of systemic racism—like slavery and discriminatory housing policies—have only worsened with modern issues like redlining, unfair laws, and financial trauma. While progress has been made in some areas, African Americans are still being left out of opportunities to build wealth. The absence of financial education passed down through generations has made these disparities even harder to overcome. By exploring both the historical and current barriers, this paper argues that improving financial literacy is essential to breaking the cycle of economic hardship. It also suggests that targeted financial literacy programs, along with larger structural changes, are necessary to reduce racial inequality and promote economic fairness.
