Why Generational Wealth Is The Ultimate Form Of Securing The Bag
This post was originally published on MommiNation.
I want to take a moment to discuss a very serious topic. A topic that the success of our children, future grandchildren, and even our nation depends on. Let's have an open dialogue about wealth in the black community.
According to a study completed by Prosperity Now, "If the racial wealth divide is left unaddressed and is not exacerbated further over the next eight years, median Black household wealth is on a path to hit zero by 2053." $0?!? That is in less than 35 years. Personally, my son will only be 47, and I, for certain, cannot let this become his reality. We cannot let this become reality!
Reflect on the concepts you learned growing up around wealth. Where did you learn those concepts? Most likely, you didn't learn anything about wealth in school. I'd be willing to bet that whatever you learned, good, bad, or indifferent, you learned from the examples within your family dynamic. Have you noticed the difference between the wealth of blacks vs. wealth of whites? I'm sure you have. But how can we close this gap and how can we blur the lines to make it impossible to notice this difference?
The answer is within our children.
It is our responsibility to teach our children about generational wealth. It is one thing to teach our children how to have a healthy relationship with money, but if we are not passing wealth on to them, we cannot be sure they will acquire it. It is time we break the generational curse of scarcity and start securing our legacies. We can disrupt the wealth gap, but we must be intentional and forward thinking. Generational wealth is not just about money passed down, it is also opportunities, support, and investments to generate more money.
Let's talk steps:
Self-Care
GiphySelf-care is not only about taking bubble baths, meditating, and working out. Self-care is about preserving your health, which includes your financial health. If you have mountains of debt, poor credit, no savings/investments, or unhealthy spending habits, that is what you will pass to your children. Before your child can become wealthy, your financial independence is required. This is the first step to setting your children up for generational wealth.
Multiple Streams of Income
GiphyWe are talking about building wealth, therefore having only one source of income will not cut it. Take all of your eggs out of that one basket and start spreading the wealth. It is almost impossible to depend on a 9-5 to build wealth when lay-offs, pay cuts, and unforeseen circumstances can storm through your life at any moment. Multiple streams of income not only provides security, but it also builds wealth. Many financial books (as well as the internet… and you know the internet is always right) proclaim that the average millionaire has seven sources of income. How many streams of income do you have?
No Fund Me
GiphyLife insurance is not to protect you, it is to protect your family. Life insurance is important for several reasons. The most important reason is to ensure that you do not pass on debt to your loved ones. Leaving funeral expenses, debt, and financial burdens to our loved ones must stop! If you take nothing else from this article, take this. Go get a life insurance policy ASAP! I cannot see another GoFundMe as a substitute for life insurance. In addition to covering your debts, life insurance can leave a substantial inheritance for your family leading up to the time that you have successfully built wealth yourself.
Credit
On the personal finance scene, there is a big debate around the use of credit. Personally, I feel like credit is a necessary evil. When your child is 16 (as young as 13 with some companies), add them to your oldest credit card with excellent payment history, utilizing 10% or less of the limit, and ensure the company is reporting to the credit bureau. Warning: This should ONLY be done if you are an extremely responsible credit card user. If you are not, DO NOT take this action and see number 1 on this list immediately. Please do not ruin your child's credit before they are old enough to ruin their own. Building your child's credit at an early age allows them to immediately obtain business loans, an auto loan with a low-interest rate, buy a home, get an apartment, etc. If you are successful at building wealth, which allows them to cash flow all expenses, they will not need credit. But, it will not hurt to have a 700+ credit score at the age of 18.
Investments
I could write an entire blog post about investments and how important they are (and actually, I probably will in the future). But for now, I'll keep it brief. THIS is the part where you build wealth. In order to pass down wealth, you want to pass down assets that will continue to generate more assets.
Retirement Account
- First and foremost, you should have a retirement investment account. This will prevent you from working the rest of your life while continuing to generate passive income. Once you leave this earth, your contributions will be transferred to your beneficiaries (your family).
Real Estate
- Investing in property is arguably the most efficient way to build and pass on wealth. Real estate is a tangible purchase you can make that will appreciate and become more valuable over time.
529 Plan
- Invest in your child's education. Now this is one I am passionate about because I have a massive amount of student loan debt that has prevented me from living my best life and also put me behind the curve of building a legacy for my child. Recent studies show that the US student loan debt is $1.5 TRILLION and black women hold $890 BILLION of this total. Whether college is necessary is debatable, but I can tell you as a person that hires/fires in corporate America and a person whose income has tripled because of a Masters degree, having a degree opens more doors than not. Take advantage of a college savings plan at a young age and prevent your child from falling in the student loan trap that will make it difficult for them to build and pass on generational wealth.
Stocks, Bonds, and the Likes
- Stash money into low-cost investment funds for your children at a young age. Let compound interest do its thing, and your child will be set when they enter adulthood.
The transmission of wealth is often accomplished much earlier in life and in less direct ways than inheritances during late adulthood. Securing your family's legacy will take intentional small steps that will make a substantial impact. Start now! Finish strong! And let's secure the bag our children will benefit from for generations to come.
Were you set up financially for generational wealth? Have you utilized any of these tips to set your children up for wealth? Or were any of these tips utilized to prepare you to receive wealth?
Written by Mykal Steen
Originally published on MommiNation
Kids need a village and moms need a nation! MommiNation serves the tea on everything about motherhood you never thought you needed to know by bringing together many of your favorite mom bloggers and experts all in one place.
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ItGirl 100 Honors Black Women Who Create Culture & Put On For Their Cities
As they say, create the change you want to see in this world, besties. That’s why xoNecole linked up with Hyundai for the inaugural ItGirl 100 List, a celebration of 100 Genzennial women who aren’t afraid to pull up their own seats to the table. Across regions and industries, these women embody the essence of discovering self-value through purpose, honey! They're fierce, they’re ultra-creative, and we know they make their cities proud.
VIEW THE FULL ITGIRL 100 LIST HERE.
Don’t forget to also check out the ItGirl Directory, featuring 50 Black-woman-owned marketing and branding agencies, photographers and videographers, publicists, and more.
THE ITGIRL MEMO
I. An ItGirl puts on for her city and masters her self-worth through purpose.
II. An ItGirl celebrates all the things that make her unique.
III. An ItGirl empowers others to become the best versions of themselves.
IV. An ItGirl leads by example, inspiring others through her actions and integrity.
V. An ItGirl paves the way for authenticity and diversity in all aspects of life.
VI. An ItGirl uses the power of her voice to advocate for positive change in the world.
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This Luxe Hotel Made My First Time In Memphis The Perfect Vacay
Memphis is one of those cities where, when you visit, you instantly feel its soul. The southern metropolitan, nicknamed Bluff City, is located right on the banks of the “mighty” Mississippi River. It is the headquarters for some major companies, such as FedEx and AutoZone, and it is home to St. Jude Hospital and the world-famous Beale Street. Conveniently placed near the action are Hyatt Centric Beale Street and Caption by Hyatt Beale Street. These sister hotels, which are connected, have a lot to offer guests, especially those who are visiting Memphis for the first time, such as myself.
Hyatt Centric Beale Street Memphis
Hyatt Centric Beale Street Memphis rooftop bar Beck & Call
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Sitting along the Mississippi River, both hotels offer breathtaking water views from the rooms, and Hyatt Centric’s rooftop whiskey lounge, Beck & Call, which is the city’s only riverfront rooftop bar, captures expansive views of both the river and the Memphis skyline. Grab a cocktail and take in the beautiful sites Memphis has to offer or enjoy the light show the Hernando de Soto Bridge, aka the “M” Bridge, has every night. On Fridays, guests can unwind and listen to live music.
Hyatt Centric also has CIMAS Lobby Lounge, which provides breakfast bites in the morning and cocktails in the afternoon and evening. CIMAS restaurant has a delectable menu that includes Latin-infused dishes for breakfast and lunch. Other amenities include room service, an outdoor pool with a cabana and poolside dining, a concierge, a fitness center, and more. My room was comfortable and the perfect place to unwind after a full day of exploring the city. I even had a view of the river.
Caption by Hyatt Beale Street Memphis
Caption by Hyatt Beale Street Memphis
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While I didn’t stay at Caption by Hyatt Beale Street Memphis, I did frequent its coffee shop/eatery called Talk Shop. Talk Shop is a laidback hangout spot that encourages community among its locals through its events like Blues & Brews and everyday activities like work (for all the remote workers) or meeting a friend for coffee or a cocktail in its beer garden. Its menu is full of variety, having everything from soft pretzels to BBQ pork sandwiches.
Caption by Hyatt Beale Street Memphis is built into the historic Wm. C Ellis & Sons Ironworks and Machine Shop building. Everywhere you look, you are reminded of its history due to the building’s industrial charm. But that doesn’t mean that it isn’t modern. The rooms are colorful and incorporate a lot of iron rods into the design, a nod to the ironworks building.
What is the Difference Between Hyatt Centric Beale Street Memphis and Caption by Hyatt Beale Street Memphis?
Caption by Hyatt Beale Street's Talk Shop and Beer Garden
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If you’re looking for more luxury or traveling with family, then Hyatt Centric might be the better option for you. If simplicity and vibrancy are key, then you may prefer to stay at Hyatt Centric’s sister hotel, Caption by Hyatt. Either way, you can’t lose.
Memphis Attractions
Beale Street sign
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Both hotels are walkable to all the city’s attractions, but of course, I have to start with the iconic Beale Street. Beale Street is where blues orginated and it is one of Memphis’ most popular places for tourists. Walking down Beale Street, you are quickly transported into another world, especially at night. Lights fill the streets as an array of restaurants and bars entice guests with its electrifying music. If you enjoy live music, B.B. King’s Blues Club is the place to go. The restaurant was created by the legendary singer B.B. King, who got his start in blues performing on Beale Street.
BBQ Chicken Nachos at Rendezvous
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As revered as Beale Street is, it's not the only spot in town to find good food and a good vibe. For breakfast, take a quick ride to Sunrise Memphis and take your pick from the mouthwatering biscuits on its menu. If BBQ is your thing, then you are in the right spot. Memphis is known for its BBQ, and Rendezvous is one of the city’s best BBQ joints. The highlight for me is the BBQ chicken nachos, which is a Memphis stable. If you’re looking for fine dining, then Amelia Gene’s is a must. The food is exquisite as it serves food pairings that are unique and full of flavor. I especially love the food presentations of each dish, which adds to the restaurant’s ambiance.
Amelia Gene's
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Other walkable attractions are the National Civil Rights Museum, the Blues Hall of Fame, and the Orpheum Theater. The National Civil Rights Museum is located at the Lorraine Motel, which is where Dr. Martin Luther King Jr. was killed. However, the motel has become a memorial for Dr. King as well as the work that many historical figures have done over the years, specifically during the civil rights movement.
The Blues Hall of Fame is near the National Civil Rights Museum, and it features exhibits dedicated to blues artists and culture. It has over 400 inductees and focuses on the history and achievements of each one. The Orpheum Theater is across the street from the hotels, and it is one of Memphis’ treasured venues. Its opulence is displayed inside and out as it stands at the intersection of Main St. and Beale St. As you walk in, you are greeted by a grand staircase and crystal chandeliers hanging above.
The Orpheum Theater
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Touring the theater, you see its beauty, but like many southern businesses that have been around for generations, you also learn about the segregated history. Walking around to the side of the building, there’s a “colored entrance” that was used during segregation. You can even watch a video from people who grew up during that era as they each reflected on their experiences of going to the theater. Many cited all of the steps that they had to take to get to the balcony, which was the only area Blacks were allowed to sit.
Issac Hayes 24k gold Cadillac in Stax Museum
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If you want to take a ride around the city, then hop on the Memphis Mojo tour. This bus tour stops at many landmarks, including Sun Studios, where Elvis Pressley and other artists recorded music. Or you can explore on foot by visiting all the haunted properities on the Memphis Ghost Tour. But we all know Memphis is known for blues, so I can’t end the story without mentioning Stax Museum.
The museum is named after Stax Records, which was a record label based in Memphis that housed a number of talented musicians like soul singer Otis Redding and Grammy award-winning artist Issac Hayes. What makes this museum exciting is that it showcases a variety of photos, records, costumes, and more from the artists on the label. But the highlight was Issac’s 24k gold Cadillac, which was put on full display.
Memphis is a charming city with a rich history and tons of activities for solo travelers, friend groups, and even families. So why not add it to your travel bucket list? By staying at one of the sister properties, Hyatt Centric Beale Street Memphis and Caption by Hyatt Beale Street Memphis, you will be surrounded by everything you need.
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