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Achieving Generational Wealth - Navigating through a Inflation and Recession

It is without question the country, as well as the rest of the world is moving towards a recession triggered by inflation and other economic factors. Although the reasons why these events are occurring may vary based on different perceptions, the reality is that households must prepare to make difficult decisions in face of uncertain times. For Black households, this is a critical period where phrases such as building and establishing generational wealth is put to the test. In order to better navigate through these choppy waters, it is important now more than ever to focus on financial literacy.

The importance of financial literacy includes the knowledge and skills of managing money efficiently, which results in better financial decisions. Financial literacy is enhanced by education as critical thinking skills and techniques could be applied to determine the most appropriate direction based on the individual’s circumstances. Timing is another contributing factor to how wealth creation is affected by financial literacy. Understanding financial literacy at a younger age will help decrease poor decisions, improves debt management, and provides the knowledge and skills to save and invest. Furthermore, understanding financial literacy provides the knowledge, skills, and tools to prepare for emergencies financially. It is reasonable to assume that education is also a significant factor for wealth retention as those who seek and act on the education received are more suited to navigate through recessions than those who may have less financial literacy. History shows through different recession cycles that Black net worth declines more than any other ethnic group.

One does not have to go to college to understand basic financial literacy principals. Black households can start today by providing several behavioral adjustments such as:

· Review spending to identify areas to cut back (i.e., dining out, switching brands at grocery stores).

· Cut discretionary expenses by 25% (wants vs. needs).

· Build emergency savings for three to six months.

· Limit credit card usage unless for emergencies.

It is important to have these conversations with friends and family, local churches, and community events. Although there are numerous jobs available, the reality is the costs of inflation continues to exceed wage growth, which emphasizes the need to make the necessary adjustments before such opportunities begin to shrink. My course, Money Management, was designed to assist Black households through good and tough economic times to identify different approaches to save, invest, and take the initial and consistent steps towards building generational wealth. Each of the learning modules build upon each other to help improve financial literacy for individuals regardless of age or financial standing.

Dr. Terrence Duncan is a multi-published author, speaker, educator, and entrepreneur who provides consulting services in entrepreneurship, project management, strategic management, and diversity, equity, and inclusion programming. He also provides commentary and resources to address racial-wealth disparity gaps, and serves on multiple boards. Learn more about Dr. Duncan at

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