Wealth and Income

It should common knowledge that wealth = (income + assets) – debts. But it's not as well known as it should be, and this holds true for low-income communities and communities of color across the country. White families hold over eight times as much wealth as African American or Latino families.

UFE's Racial Wealth Divide project aims to make information easily available on topics such as the importance of asset-building and the need for rules that allow for steady and increasing income over the lives of low-income people.

Income has become the main focus for those in the bottom half of the wealth divide. This emphasis on income, at the expense of assets, ill serves people struggling to establish themselves or to make ends meet. It's difficult to turn income alone into wealth, unless, of course, one works at the higher end of the income scale. It is, however, possible to build wealth by developing personal assets in addition to income. Many families are unaware of how assets can support the generation of wealth, and how limited the impact of income alone is for wealth-building.

Part of UFE's work is aimed at helping those on the lower rungs of the income ladder – who are too often people of color – to understand the lifelong and intergenerational value of asset development strategies. For example, assets may come in the form of homeownership, starting a business, or buying a vehicle to help expand an existing business.

Asset development is under constant consideration by the wealthiest among us, but can even be of great benefit to working class individuals and families. UFE brings together asset-building information and real world activities to expand the financial horizons for people whose economic well being have, thus far, been stunted by an excessive focus on income alone.

Download the Racial Wealth Divide Workshop.