Navigating the Hidden Challenge: Unveiling the Generational Income Gap and the Path to Multigenerational Wealth By Sibyl Slade, CRPC With that being said, building wealth and maintaining it is not easy for Gen Xers or any of these generations for that matter. We face many challenges and barriers, such as lack of financial literacy, limited access to capital, discrimination, and cultural differences. We also have to overcome the mindset of scarcity and survival and adopt the mindset of abundance and prosperity. That is why building multigenerational wealth is so important. By building wealth, we can: Provide financial stability and security for ourselves and our loved ones. We can afford to live comfortably, pay off our debts, save for emergencies, and invest for the future. We can also support our family members in their education, health, and career aspirations. Create opportunities and choices for ourselves and our family. We can pursue our passions and interests, explore new horizons, and expand our network. We can also give our children and grandchildren a head start in life and help them achieve their full potential. Make a positive impact on our community and society. We can contribute to the causes and issues that matter to us and inspire others to do the same. We can also create jobs, mentor others, and share our knowledge and skills. We can be a role model and a leader for the next generation of wealth builders.
ost people are well aware of the gender income gap and the race income gap. But what most people are not aware of is the generation income gap. According to the St. Louis Federal Reserve Bank, Millennials and Gen Zers owned 70 cents for every dollar of wealth owned by Gen Xers at the same age. Millennials and Gen Zers owned 74 cents for every dollar of wealth owned by baby boomers at the same age. Gen X ers has the highest mean of disposable income by household and the highest numbers of borrowers with the highest student loan debt balances. What is the current generational wealth gap? · Younger Americans (millennials and Gen Zers) owned 70 cents for every $1 of wealth owned by Gen Xers at the same age. · Younger Americans (millennials and Gen Zers) owned 74 cents for every $1 of wealth owned by baby boomers at the same age. No surprises here, for decades it has been projected that Gen Xers are the last generation that will do better economically than our parents’ generation. The reality is because we are the first generation of high wage earners, we are also the generation that bear the financial burden of balancing debt (including student loans) to maintain our elevated lifestyle, provide for our children education, and provide financial support for our parents as they age.
Building generational wealth is not about a destination, it’s a journey. It’s also about community. We have to be intentional about building a community of wealth builders to close the myriad of income gaps that exist and especially for those of us who are at the intersection of each of these demographics
Sibyl Slade is the Founder and President of IntegriVest Wealth Advisors, LLC. located in Atlanta, GA.
Disclosure for Article: Securities offered through Securities America, Inc., member FINRA, SIPC. Advisory services offered through Securities America Advisors, Inc. IntegriVest Wealth Advisors, LLC. and Securities America are separate entities.
SOUTHERN CRESCENT WOMEN IN BUSINESS MAGAZINE
