Financial Wellbeing Among Vermonters of Color
The financial health of the BIPOC community is a concern that’s been at top of mind for VT PoC since our inception. Our mission is to advance the prosperity of all BIPOC individuals in Vermont…yet this is a challenging topic because we, as a group, have been historically excluded from accessing money since, let’s be real, 1619. Where so many white Americans have built up their wealth since that time, or even since the 1990s, it has become even more difficult as inflation has worsened since COVID-19 effects have worsened inflation. We’re now seeing it in the cost of eggs and gas.
While managing wealth for the average (read: white) American used to be simpler, it has always been distinctly difficult for the BIPOC community. The GI Bill, which failed to secure benefits for Black WWII veterans, in addition to rampant redlining, and white supremacy in other aspects of American culture and institutions, prevented people of color from not only gaining wealth, but preserving and passing on what they had to begin with. While 20th century policies like the GI Bill were far from the only (or even the strongest) cause of wealth disparities between races in the United States, it’s one indicator of how important it is for people of color to understand traditional financial systems and how to be financially healthy. This pattern can be seen close to home, too. In Burlington, only 0.2% of homes are owned by Black residents despite 7% of the population being Black.
Within the BIPOC community, we know that buying property and similar large assets are a means to building wealth, but there are an incredible number of barriers that prevent us from doing so. Most people do not get rich on salaries alone – investing is critical to building wealth. Outside of overt racism, we have a harder time for a surprisingly simple reason: geographic location and lack of accessibility to banks. Banks have a say in nearly every aspect of wealth management, yet even in 2023, racist policies (notably redlining) make finding a bank in BIPOC communities relatively rare muchless one owned and operated by BIPOC themselves. This prevents physical access to banks, and it becomes time consuming and expensive to reach banks outside of where we live. Even when physical access is not the problem, community members seeking financial services still face barriers due to lack of respect, lack of initial capital (money needed to start using their services), or simply lack of services to assist BIPOC specific circumstances. Simply put: banks don’t meet us where we’re at.
What can be done to help shrink the wealth disparities and heal financial trauma? For starters, it helps to educate yourself about financial health and to push for financial literacy in schools. The earlier people learn about different avenues for increasing and preserving wealth, the more they can earn and save for over time. Regardless of where you are at, there are many community-based resources to support self-education. And trust us: you are NOT alone. VT PoC Network, The Root Social Justice Center, and CVOEO are just a few local organizations that are offering financial literacy and wellness workshops right now. BIPOC- owned businesses offering similar counseling include Vermont Consumer Credit of Shelburne, CQ Strategies of Burlington, and many others, which you can find more information on via the VT PoC BIPOC business directory.
For those hesitant to work with banks, credit unions are a great alternative, as they are non-profits who invest in local small businesses and communities compared to corporations. Opportunities Credit Union, which has locations in both Burlington and Winooski, have lending services specifically for immigrants. But what about more complex moves? Investing can be scary, but the best solution to calming these nerves is finding conservative investments. For instance, you could consider government issued bonds, which have guaranteed returns over a certain time period. See Treasurydirect.gov for more information.
If you are someone who considers themselves unfamiliar with financial health concepts, or even if you are, it helps to have someone to talk to about your concerns so that you can start saving for the future. The more you know and the more tools you have to support you, the more likely it is for opportunities for growth to come to you on their own.
