Closing the gap: A look at early financial literacy programs for Black youth

By Victoria Mejicanos 
AFRO Staff Writer 
vmejicanos@afro.com 

While many children are excited about spending money, they can be just as eager to understand it when given the opportunity. The problem, experts say, is that early financial literacy isn’t as widely available as it could be in communities of color to nurture that curiosity. 

According to a survey of the states by the Council for Economic Education, a non-profit organization dedicated to improving financial education in K-12 schools, only 39 states require students to take a course on personal finance to graduate. Only 21 states require an economics course, leaving students without formal financial education before entering adulthood.

Aneka Winstead is a longtime accountant and teaches accounting at Morgan State University. Through working with those close to retirement, she found that adults often lacked foundational financial knowledge, meaning those same tools are not passed down at home, leaving young people to figure it out on their own. 

With this observation, she decided to start her own nonprofit, WATTKid$. As a Black woman who has always had the tools for wealth building and financial literacy, she sees just how many people in her community are not as fortunate. She described her nonprofit as the “missing link” in the financial education her sons were receiving at school. 

“I think that our community is begging, is dying for financial literacy,” said Winstead. “I know there are many people doing the same thing. I wish that we as a collective could get together and make a strong movement for our people, particularly because that’s who I think needs it the most. I really would love for us to do more of it.” 

Winstead says she hopes that financial literacy can be taught as often as possible and become a concrete part of children’s lives and curriculum.

That gap is why educators like Whitney Ramirez, the program manager at Diapers2Deposits, a provider of financial literacy programming for schools, nonprofits and community-based organizations, is working to introduce financial literacy early, before habits are formed and misconceptions take hold. She works with students as young as kindergarten and as old as those entering college.

“I think what happens in underserved communities or low-income households is that most students or kids are watching their parents suffer and or be frustrated with bills,” said Ramirez. “So they immediately think that money and frustration must exist together, or money brings disappointment, or money is hard. 
So the goal is to make sure that we start with a healthy relationship earlier.” 

Ramirez shared how early exposure works in real time. Her program combines in classroom learning as well as outside the classroom experiences she calls FinancialField Trips. At one of the schools she partners with, elementary school students went to Six Flags. Those in the program were purposely deciding what to do with their money and how to best spend it. 

Ramirez encourages parents to stop hiding finances from their children, as they often see it but are not given the chance to understand. When they are, she says, curiosity takes over. 

“They’re really excited to learn about money, and they really enjoy the fact that they’re being trusted with this information at such a young age,” said Ramirez. 

Programs like these don’t just shape how students view money in the present, but also get them to think about their financial future.

Todd Scott is the CEO and president of WeRise, a nonprofit financial program he created for teens that emphasizes not just financial literacy but wealth building and ownership. Scott draws from his personal experience on Wall Street. 

“When I was going through that, it always became something that I thought would be very advantageous for someone to learn at a much earlier age, without even going to college, just understanding how basic business practices and principles and financial acumen could be to your everyday decisions on all your purchases,” said Scott. 

The program emphasizes self-sufficiency and, according to Scott, has transformed lives before students graduated from the program even if they had no prior financial knowledge.

In one instance, an 18-year-old girl was able to raise her credit score 35 points. In another, a child was able to surprise the child’s mother with a $200 grocery shopping trip. In an example of ownership, a 17-year-old entrepreneur is planting seeds to own his own barbershop. 

Scott says that in a time where instant gratification makes money easy to spend, programs like his teach students patience and equip them with the knowledge needed to thrive financially. 

Maggie Holmes is the strategic planner and grants manager for WeRise, and sees young people’s passion for financial learning. 

“I think we underestimate young people and their interests in being interested in financial literacy and them being able to take that seriously, and understanding how that directly impacts their lives,” said Holmes.  “That’s an area where communities, as well as the society, could give more credence to young people and see the value of financial literacy being introduced to young people at a much younger age. There is a clear connection between money and living and daily functioning.” 

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