Guest Blog: Melissa Cade, Chartway's Chief Experience Officer
Generational wealth is a powerful tool for economic security and upward mobility. It allows families to pass down tangible assets – property, investments, businesses, or financial knowledge – and create financial stability for future generations. Yet, for many Black Americans, achieving generational wealth has been historically challenging due to systemic barriers, economic disparities, and financial exclusion.
As we celebrate Black History Month, it’s the perfect time to reflect on and explore how Black families can build wealth to ensure future generations have the financial resources to thrive. At Chartway, we’re committed to being a trusted partner on this financial journey, creating paths forward with resources and opportunities for homeownership, investing, financial literacy, and entrepreneurship. We’re also focused on supporting financial inclusion and empowering Black communities for sustainable financial success through dedicated programs and partnerships in the markets we serve.
The Generational Wealth Gap
Wealth disparities in the United States are deeply rooted in our history. Policies like redlining, discriminatory lending practices, and limited access to quality education and employment have restricted Black families from accumulating and passing down wealth.
- Redlining and Housing Discrimination: Black families have been systematically denied mortgage loans, preventing homeownership, which is a major driver of generational wealth.
- Unequal Access to Education: Historically underfunded schools and barriers to college enrollment have impacted income levels and thus wealth accumulation.
- Employment and Wage Gaps: Black workers continue to experience pay disparities, limiting savings and investment potential.
Despite these challenges, there are actionable steps Black families and communities can use to build and sustain generational wealth.
The Great Wealth Transfer
Financial experts predict that over the next two decades, an estimated $84 trillion in assets will be transferred from baby boomers to younger generations. This “Great Wealth Transfer” represents an opportunity for Black families to position themselves for financial security. However, only 8% of Black families currently inherit wealth. This means it’s more important than ever for Black individuals and families to actively engage in wealth-building strategies.
Homeownership: The Foundation of Wealth Building
Owning a home is one of the most effective ways to create generational wealth. Real estate provides stability and appreciates over time, allowing homeowners to pass down valuable assets. Unfortunately, Black homeownership is the lowest of any group in the U.S. at below 50 percent.
The good news is there are FHA loans and down payment assistance grants that can make homeownership more accessible. And here at Chartway, prospective buyers can attend one of our first-time homebuyers workshops or meet with a mortgage professional to learn what they need to know about how to qualify and purchase a home.
Financial Literacy: Knowledge is Power-
Understanding money management and credit is critical for long-term wealth. Financial literacy should start early so that wealth-building habits become second nature, and Chartway can help! Start by learning about:
- Budgeting & Saving: Visit Chartway.com to access information and connect with a Financial Coach about how to create a budget or discover savings tools.
- Credit & Debt Management: Keeping debt low and credit scores high allows access to better financial opportunities.
Investing: Growing Wealth Over Time
Investing is an essential step in closing the wealth gap. The stock market has been one of the most consistent ways to grow wealth, yet only 33.5% of Black households own stocks. Building a diversified investment portfolio, including stocks, bonds, and retirement accounts, can generate long-term wealth. Through our partner, LPL Financial, Chartway can help our new investors understand the risks and benefits associated with different investment vehicles and choose the best ones to grow their wealth long-term.
Entrepreneurship: Creating Legacy Businesses
Starting a business is a powerful way to generate income and pass wealth to future generations. Many Black entrepreneurs lack access to startup capital, but there are small business loans, grants, and networking opportunities available to help. For example:
- SBA Loans & Microloans: The Small Business Administration (SBA) and other organizations provide funding to minority-owned businesses.
- Business Grants: Programs like the NAACP’s Black Entrepreneurship Initiative offer non-repayable grants to support Black-owned startups.
- Community Support & Networking: Groups like the U.S. Black Chamber of Commerce connect entrepreneurs with valuable resources.
Chartway is also here to empower Black entrepreneurs in our communities with business loans and commercial real estate loans as well as other products like business checking accounts, credit cards, cash management, and merchant services.
Estate Planning: Protecting and Passing Down Wealth
Building wealth is just one part of the equation – preserving and passing it down is just as important. Unfortunately, many families lose wealth due to a lack of estate planning. Black families should seek out professional guidance from estate attorneys and their financial advisors to ensure wills and trusts maximize wealth transfer to the next generation.
How Chartway Supports Wealth-Building in Black Communities
At Chartway Credit Union, we’re committed to fostering multicultural financial inclusion and economic empowerment. We focus our efforts on creating programs and providing services to help members from all demographics build wealth through homeownership, credit-building, savings, and investment opportunities.
- Home Loans & Mortgage Assistance: We provide first-time homebuyer resources, competitive mortgage rates, and personalized financial guidance.
- Savings & Investment Products: Our Bonus Savings Accounts, Money Market Accounts, and Share Certificates offer members accessible ways to grow their wealth.
- Financial Coaching & Credit Support: Certified financial coaches help members create long-term financial plans, improve credit scores, and achieve financial milestones.
- Small Business Loans & Partnerships: Chartway supports Black entrepreneurs through accessible financing options and business growth resources.
By focusing on members and communities and through partnerships like the one we have with Norfolk State University (a historically black university in our Virginia market), Chartway ensures that financial wellness is attainable for all.
Final Thoughts: A Legacy of Wealth for Future Generations
The journey to generational wealth requires education, strategic planning, and access to financial resources. While Black communities have faced systemic challenges, they have also demonstrated resilience, innovation, and economic power. That’s why, with access and support, Black families can create a legacy of financial security that spans generations.
At Chartway Credit Union, we remain dedicated to providing the tools and resources needed to turn financial goals into reality. This Black History Month – and every month – we celebrate the strength, ambition, and potential of the Black community as we work toward a future of economic empowerment and generational prosperity.