Amplifying Voices of Black Women: Goldman Sachs One Million Black Women Fall 2023 National Survey

- by Kathy Antipuesto

Goldman Sachs’ One Million Black Women is starting a new public policy initiative to amplify Black women’s voices in the United States. They want to give Black women more chances to do well economically and narrow the opportunity gap. To back this initiative, they conducted their second national survey1 where they heard from 1,200 U.S adults, including 600 Black women, to help them guide the work. The survey reveals insights regarding their systemic barriers in building generational wealth. This article will share our major takeaways from the survey results, and shed light on the challenges and optimism among Black women in their pursuit of economic equity.

 

SYSTEMIC BARRIERS TO BUILDING GENERATIONAL WEALTH

#1 – Pursuing Higher Education Comes at a Steep Cost

The survey highlighted that 84% of Black women have attended at least some college (compared to 86% of U.S. adults) while only 16% of Black women have a postgraduate degree (compared to 15% of U.S. adults). 28% of Black women expressed the challenge of accessing quality education due to the steep costs involved as they owe more than $50,000 in student loans (compared to 11% of U.S. adults).

The impact, why this matters:

This barrier not only limits their educational opportunities but also affects their long-term economic prospects, as higher education is often seen as a pathway to better job opportunities and increased earning potential.

 

#2 – Insufficient Income

Another key finding of the survey was the prevalence of insufficient income among Black women, 50% of Black women have household incomes of less than $75,000 a year, even some work multiple jobs (compared to 35% of U.S. adults).

OBSTACLE TO SAVING AND PLANNING FOR RETIREMENT

With insufficient income, less than 50% of Black women have an emergency savings account and a 401k and/or other type of retirement savings plan.

SOCIAL SUPPORT FOR THE COMMUNITY

While creating generational wealth, Black women are a key source of financial and social support for their communities, which based on the survey:

  • 36% of them financially support their parents or expect to do so as they age (compared to 26% of U.S. adults).
  • 54% of them have contributed to a parent or family member’s housing expenses (compared to 45% of U.S. adults).

The impact, why this matters:

This data poses significant obstacles to saving, planning for retirement, and supporting the communities, all barriers to being able to sufficiently build generational wealth.

“My generation is increasingly focused on building generational wealth, while simultaneously taking on the role of caretaker for older generations who, because of policies or lack of resources, were unable to amass wealth for themselves. For many, it can feel like trying to fill a leaky bucket – trying to build your wealth while supporting others.” -Marguerite Pressley Davis, Founder and CEO of Finance Savvy CEO®

 

#3 – Carrying More Debt

The survey also showed that 35% of Black women are paying off student loans and 38% are paying off debt other than student loans, which makes their financial problems even worse.

The impact, why this matters:

These debts make it tough for Black women to save money and invest in things that could help them make more money later on. So, it’s harder for them to build a good financial base for themselves and their families.

It’s imperative that black women are able to access to alternative capital beyond just venture capital and debt instruments.

 

BOTTOM LINE

Despite facing significant systemic barriers and economic disadvantages, such as the high cost of pursuing higher education, insufficient income leading to difficulties in saving, planning for retirement, and supporting the communities, and the burden of carrying more debt, 63% of Black women are optimistic about the future, demonstrating resilience and determination of Black women in the face of adversity. This optimism serves as a powerful reminder of the strength and perseverance within the Black community and underscores the importance of addressing systemic inequalities to narrow the opportunity gap and pave the way for a more equitable future for all.

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