How a Financial Planner Can Help BIPOC Women Build Wealth

Building wealth is a journey laden with challenges, and for Black, Indigenous, and people of color (BIPOC) women, the path can feel like a continuous uphill battle. Working with a financial planner who can understand the historical and systemic barriers that BIPOC women face can be transformational. A CFP® professional’s help can be a necessary first step for BIPOC women to overcome societal challenges and embark on a journey toward financial empowerment.

Are you a BIPOC woman on a wealth-building journey? Let's explore how working with a CFP® professional can make a significant impact on your financial path.

1. An effective financial planner can play a crucial role in processing generational fears and traumas around interacting with money. Many BIPOC women carry the weight of financial histories shaped by systemic inequalities and discrimination. These generational fears could cause issues, such as a scarcity mindset, hindering the ability to make impactful financial decisions and build wealth. A financial planner could provide a space to explore and understand these deep-rooted concerns. By addressing and dismantling these fears, BIPOC women can begin to break the cycle of financial insecurity and lay the groundwork for a more prosperous future.
2. In addition to addressing generational fears, a CFP® professional can assist BIPOC women in developing a healthier relationship with money. Many individuals, irrespective of their background, struggle with feelings of inadequacy or self-consciousness when it comes to finances. A financial planner can provide personalized guidance, helping BIPOC women understand their unique financial circumstances and empowering them to make informed decisions. This newfound confidence is pivotal in fostering a positive relationship with money and wealth building, ultimately contributing to a more secure financial future.
3. Another significant challenge faced by many BIPOC women is the lack of investment in wealth accumulation strategies. According to CNBC’s 2021 Invest in You Survey, 59% of Black women aren’t investing, compared to 48% of Hispanic women, 34% of white women and 23% of white men. A CFP® professional can help BIPOC women embrace investment opportunities. This involves not only educating them about risk and various investment vehicles but also instilling a sense of empowerment to take calculated risks and pursue growth. By demystifying the world of investments, financial planners enable BIPOC women to build diverse portfolios, setting the stage for long-term financial success and building wealth.
4. The gender wealth gap is a glaring issue, and BIPOC women find themselves at the intersection of race and gender disparities. According to the 2019 Federal Reserve Board Consumer Survey, families headed by Black and Hispanic women owned between 5 and 10 cents for every dollar of median wealth held by families headed by white men.

A CFP® professional can help address these disparities by providing targeted strategies tailored to the unique challenges faced by BIPOC women and the reality of living within a wealth gap.

Working with a CFP® professional can help BIPOC women build wealth in so many ways. It involves addressing generational fears, fostering a healthier relationship with money, encouraging investment and tackling the gender wealth gap. Financial planning can be instrumental in reshaping the financial narratives of BIPOC women, paving the way for a more equitable and prosperous future. Find your CFP® professional today.