JPMorgan uses Advancing Black Wealth Tour to build financial literacy

JPMorgan Chase presented their Advancing Black Wealth Tour in Philadelphia on October 8, 2022.

Photo: Steven CW Taylor and Salim Weldon of Steven Taylor Photography

A new attempt to JPMorgan Chase tries to help close the racial wealth gap.

The bank’s Advancing Black Wealth Tour, launched this spring, aims to give participants the tools they need to manage their finances and build lasting wealth, even with the threat of a possible recession on the horizon.

The most recent leg of the tour was in Philadelphia earlier this month. Previous stops also included Los Angeles and New Orleans. Further events are planned for 2023.

“When we look at the black community historically, there has been a very significant gap in awareness of how to grow wealth,” said Justin Grant, executive director of JPMorgan’s. Advancing Black Lanes education and training program. The tour is a collaboration between Advancing Black Pathways and local Chase Bank executives.

“We want it to be actionable,” Grant said.. “We don’t want to just talk to people, inspire them, and then they walk away and forget about it. We’re going to provide them with very constructive tools and resources so they can take what they learn and act on it.”

The racial wealth gap describes the wealth disparity between black and white households in the United States. That’s significant: In the first quarter of 2022, the average black family had 24 cents for every dollar of wealth held by white families, according to at the Federal Reserve Bank of St. Louis.

Collectively, the racial wealth gap is estimated at at least $14 trillion, according to William A. Darity, Jr., director of the Samuel DuBois Cook Center on Social Equity at Duke University. The gap grew from $11 trillion in 2020 due to the disruption of the Covid-19 pandemic, he said.

Business efforts to close the gap

JPMorgan’s Advancing Black Wealth Tour is part of a commitment of $30 billion over five years the bank established in 2020 to provide economic opportunity to black and Latino communities. Other elements of his plans include expanding access to mortgages and banking services for underserved communities.

From October 2020 to end of 2021JPMorgan has deployed or committed more than $18 billion toward this goal.

The bank is one of many large companies that have made similar commitments in recent years, focused on closing the racial wealth gap. Here are a few:

  • Selling power sponsors a National Black Business Month Block Party Summit that offers round tables and discussions on the creation and development of black businesses. In 2020, the software giant has pledged to $410 million effort to address racial inequality and announced in September that it had achieved its goal of doubling black representation in American leadership positions set by 2020.
  • Microsoft launched its Black Partner Growth Initiative Accelerator in January to support black tech companies and contractors, and pledged to spend $500 million with black suppliers by 2025.
  • walmart has committed $100 million to address “systemic disparities” through its Center for Racial Equity. In 2021, he also announced a partnership with C2FO to provide advance payments to black and diverse Walmart suppliers to increase their working capital and help them grow their businesses.

Darity, who is also the founding director of the Race and Ethnic Inequality Research Network at Duke, said such business efforts do help the black community, but closing the racial wealth gap completely requires a multifaceted approach. involving direct federal action.

Get ready for ‘a feast after the famine’

JPMorgan Chase presented their Advancing Black Wealth Tour in Philadelphia on October 8, 2022.

Photo: Steven CW Taylor and Salim Weldon of Steven Taylor Photography

At the recent stop of the Advancing Black Wealth Tour in Philadelphia, bank executives and financial influencers shared the stage on a Saturday morning, offering insights to a crowd of more than 300 people. Many presentations focused on how attendees could preserve and create wealth even in tough economic times..

“Since the dawn of time, whenever there has been a famine, there has been a feast after the famine,” said the financial trainer Lynn Richardson during one of the first sessions of the day. “We have to be ready for the upside, whether the upside is in stock, whether it’s in real estate, whether it’s some other investment.”

In another presentation, Milan Harris, founder and CEO of clothing brand Milano Di Rouge, shared her entrepreneurial journey. His company started in 2012 with a single shirt and has grown into a streetwear brand with an outlet, an online store and millions in annual sales, according to the company’s website.

“If I go to sleep with a goal, I wake up with a goal,” Harris told the crowd. “I want you to see a young black girl from the neighborhood and know that if I can do it, you can do it too.”

Here are six financial decisions that can help close the racial wealth gap

Financial influencer Ian Dunlapalso known as “The Master Investor”, focused on the power to invest and create wealth for future generations. Dunlap encouraged the public to diversify their finances to protect against a possible economic slowdown.

“You want access to four basic investments that you want to be in,” he said during his session, encouraging attendees to create a personalized investment portfolio.

Dunlap told CNBC his goal was to break down barriers between the black investor and institutions.

“I want to build a financial supply chain,” Dunlap said. “If we want to have financial freedom and financial literacy, after making money, where are we going to take it?

“I want to rebuild the relationship between the customer and the bank or the institution,” he said. “I think we’re very fractured. The big long-term win on the institutional side is having a bigger, more loyal customer base. For the investor, less worry and worry.”

Learn more about personal finance:
33% of job seekers wouldn’t even go to a job interview without seeing the salary first
Your “personal inflation rate” varies depending on where you live, among other factors
Even amid inflation and recession worries, there are opportunities to build wealth, top advisers say

Geraldine L. Melton