Rise in Gen Z Black investors, yet racial wealth gap grows

By Tiasia Saunders Gen Z Black investors have risen in the stock market, which has increased overall Black American wealth.& According to the Federal Reserve, Black Americans primarily accumulate wealth through non-retirement government funds, whereas white families predominantly rely on wages and salaries for their wealth accumulation.  Taryn Young, a sophomore honors finance major from Alexandria, Virginia who started investing last summer, discussed the importance of learning how the market works as early as high school.& “Having [an] education on stocks is crucial because our counterparts learn about investing and the stock market at such a young age, and by the time we learn and begin to invest, everyone else is already two steps ahead,” she said. “I would recommend for Black students to learn about investing as early as high school,” Young continued.& Resources such as technology advances and increased accessibility play a role in why Black Gen Z’s start to invest. According to the Financial Industry Regulatory Authority ‘Investors of Color in the US’ report, young investors are embracing higher-risk investments, pursuing motives beyond solely long-term profitability, and depending on social media for investment guidance. In addition, Black American investors often prioritize investing in Black-owned businesses and enterprises...