The EASD Equity Chat for the month of November will focus on the Wealth Gap and the importance of Financial Literacy. You can use the resources below to increase your knowledge, challenge your assumptions, and/or take a stand to battle inequities in our school and community. The Culture and Climate committee will be hosting a zoom chat on December 1st from 7-8PM. We hope you can join us to share your experiences and build a stronger sense of community with all of our stakeholders. If you would like to register for the discussion, please click here.
Why financial Literacy Matters for Equity and Inclusion
Over the past 50 years, the highest-earning 20% of U.S. households have steadily brought in a larger share of the country's total income. There is a major wealth gap between the richest and poorest families in our nation. In addition to the wealth gap, racial and gender pay gaps also exist.
According to 2022 Report from Payscale, women in 2022 earn 82 cents for every dollar earned by a man.
Black Americans earn 73.4 cents on the dollar to white Americans, as reported in a New York Times article in 2020.
The gap is even deeper for Black women. An article from the Economic Policy Institute in 2020, reported black women earn only 64 cents for every dollar a white man earns.
A 2020 article from the Forbes Finance Council points out that financial literacy is one piece of the puzzle that can help people “turn wages into long-term wealth…fueling financial success that transforms generations.” That means effective financial education is crucial in improving equity and inclusion.
There are hundreds of videos, articles, and research published on the "Wealth Gap and Education". Here a four quick articles to help deepen your understanding. After you read each article, take a few minutes to reflect. If you want to explore more, take a look at three videos below.
Articles for Review and Discussion
22 Million Reasons Black America Doesn’t Trust Banks
https://theconversation.com/22-million-reasons-black-america-doesnt-trust-banks-37982
Homeownership, Racial Segregation, and Policy Solutions to Racial Wealth Equity
Life in a Banking Desert
https://www.theatlantic.com/business/archive/2016/03/banking-desert-ny-fed/473436/
It’s Harder to Buy a House. This city fought back by outbidding corporate landlords.
https://www.npr.org/2022/11/03/1132358911/mortgage-rates-inflation-real-estate-housing
Wealth Gap/ Financial Literacy Definitions
Wealth - the total value of all assets of worth owned by a person, determined by adding up all assets owned and subtracting all debts
Examples of assets: car, home, savings account, checking account, investments, businesses
Financial Literacy - possession of the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources
Unbanked - an “unbanked” person is someone that does not have a checking or savings account with an insured (FDIC) institution.
Underbanked - an “underbanked” person has a checking or savings account with an FDIC insured institution, but regularly uses alternative financial services (AFS) such as payday lenders
Although "Financial Literacy" education has been around for decades, very few states ensure financial literacy for all of their students. You can review the latest national report from Next Generation Financial Literacy here. If you want to bring financial literacy into your home or classroom, take a look at the resources below.
Financial Literacy Education Resources for Parents and Educators
Next Generation Financial Literacy- https://www.ngpf.org/
PDE Financial Literacy Resources- https://www.education.pa.gov/Teachers%20-%20Administrators/Curriculum/EconomicFinancialLiteracy/Pages/default.aspx
Financial Literacy & Financial Education for K-12 Students by Everfi, Inc.- https://everfi.com/k-12/financial-education/
Financial Literacy: Continuity of Education Planning Resources, Making Cents Project.
The Culture and Climate Committee will be hosting an Equity Chat on the Wealth Gap in America and Financial Literacy on December 1st from 7-8PM. Please register here and a zoom link will be shared for the event. Educators participating may also receive Act 48 credit hours by registering for the event in CPE Tracker.