Advocating For Wealth Equity in the U.S. - Addressing Disparities and Expanding Financial Access for Minority Communities
The United States is currently undergoing the most significant intergenerational wealth shift in history, commonly referred to as the Great Wealth Transfer, with $84 trillion projected to be passed down over the next two decades. This transition presents both opportunities and challenges, particularly for minority communities that historically have been excluded from wealth-building mechanisms.
Simultaneously, minority consumer buying power is increasing at an unprecedented rate. According to the 2025 Nielsen Report, Black American buying power alone is expected to reach $2.1 trillion by 2026, while the Selig Multicultural Economy Report (2021) estimates that combined African American, Asian American, and Native American buying power increased from $458 billion in 1990 to $3.2 trillion in 2021. Hispanic buying power has also grown significantly, reaching $2.1 trillion in 2021, up from just $213 billion in 1990.
Despite these financial gains, racial disparities in wealth accumulation, homeownership, business funding, and access to financial services persist, limiting the ability of minority communities to fully capitalize on the wealth transfer. Moreover, the underrepresentation of Black, Hispanic, and Native American financial professionals exacerbates these disparities—only 2.9% of financial advisors in the U.S. identify as Black.
The Business Case for Wealth Equity
The 2025 Nielsen Report shows that 67% of Black consumers are willing to switch brands if a company does not align with their values. Businesses that invest in wealth equity will benefit from stronger loyalty, higher engagement, and increased revenues.
Key Takeaways for Businesses & Policymakers
1. Minority Buying Power is Growing—failing to engage these markets is a missed opportunity.
2. Inclusive Financial Services Create Economic Growth—ensuring equitable access benefits the entire economy.
3. Diversity in Wealth Management Strengthens Client Relationships—increasing Black and Hispanic advisors fosters trust and engagement.
This report integrates data from the Citizens Bank Wealth Transfer Report 2024, the 2025 Nielsen Report, and the Selig Multicultural Economy Report (2021) to provide a comprehensive analysis of wealth equity challenges and solutions in the U.S. - The urgent need for Wealth Equity in ethnically diverse and underserved communities emphasizes expanded financial services access, policy reforms, and workforce diversity increases to close racial wealth gaps between white and other ethnic minorities while also ensuring inclusive economic participation.
The Great Wealth Transfer and Its Impact on Minority Communities
The “Great Wealth Transfer” is expected to further entrench existing racial wealth disparities if no targeted policies or interventions are implemented. Currently, white families hold nearly 84% of total U.S. wealth, while Black and Hispanic families combined hold less than 10%. We know inheritance is a key driver of generational wealth, yet only 8% of Black Americans and 7% of Hispanic Americans receive inheritances, compared to 26% of white Americans. The median Black household holds just 15% of the wealth of the median white household, while Hispanic households hold 20%. Without strategic intervention, minority communities will continue to face limited access to capital and wealth-building opportunities, deepening financial inequities.
Projected Buying Power Growth (2022–2032)
Using a compound annual growth rate (CAGR) model based on historical trends (1990–2021), we can project minority buying power for the next decade. These projections provide directional estimates, subject to economic fluctuations, policy shifts, and technological advancements.
Projected Minority Buying Power (2022–2032)
Minority Group 2021 Baseline (Approx.) Assumed CAGR 2032 Projection (Approx.)
African American $1.6T – $1.8T 5% – 6% $2.6T – $3.2T
Asian American $1.3T – $1.5T 6% – 7% $2.3T – $3.0T
Native American $140B – $160B 4.5% – 5.5% $220B – $290B
Hispanic $2.1T 5.5% – 6.5% $3.6T – $4.0T
Note: These figures are estimates, and aggregated totals may differ across data sources.
Factors Influencing Growth
i. Economic Fluctuations: Recessions, inflation, and employment trends impact disposable income.
ii. Policy Changes: Legislation affecting immigration, education, and small business funding will shape minority financial outcomes.
iii. Technology & Digital Access: The rise of fintech, digital banking, and remote work can expand financial participation.
iv. Education & Career Growth: Increasing minority college graduation rates will raise median income over time.
Barriers to Wealth Accumulation for Minority Communities
a) Limited Access to Financial Services:
i. Financial Planning Deserts: Many ethnic minority households lack access to mainstream banking and investment services, restricting wealth-building opportunities.
ii. Predatory Lending: Black and Hispanic borrowers are more likely to be targeted by high-interest financial products, reducing their ability to save and invest.
iii. Lack of Marketing & Outreach: Financial institutions have historically neglected marketing wealth management services to minority communities, leading to lower investment participation.
b) Underrepresentation in the Financial Services Industry
i. Black financial professionals make up only 2.9% of all advisors, limiting culturally competent advice for Black households.
ii. Few pathways exist for minority professionals to enter financial services, contributing to distrust of the industry in underserved communities.
c) Systemic Wealth Gaps Within Ethnically Diverse Communities
i. Homeownership disparities: Homeownership remains a primary wealth-building tool, yet Black homeownership rates are significantly lower than white homeownership rates.
ii. Business Funding Gaps: Minority entrepreneurs receive less business capital and fewer small business loans, stifling economic mobility.
iii. Higher Student Loan Debt: Black and Hispanic graduates hold more student loan debt, delaying wealth-building activities such as homeownership and retirement savings.
Solutions: Expanding Financial Access & Wealth Equity
a) Financial Literacy & Wealth Management Outreach
i. Expand Culturally Relevant Financial Education in for ethnic minority in the workplace and in communities.
ii. Encourage Banks & Investment Firms to increase services in historically underbanked areas.
iii. Increase Black, Asian, Native American & Hispanic Representation in Financial Services to foster trust and engagement.
b) Supporting Minority Entrepreneurs & Homeownership
i. Provide Low-Interest Business Loans for minority entrepreneurs.
ii. Expand Down Payment Assistance Programs to close the minority homeownership gap.
iii. Encourage Corporate Partnerships & Mentorship Programs for minority-owned businesses.
c) Addressing Systemic Economic Barriers
i. Enhance Federal Student Loan Relief for minority students to reduce debt burdens.
ii. Increase Representation in Financial Decision-Making to drive policy changes that benefit underserved communities.
iii. Ensure Equitable Pay & Employment Opportunities for minority professionals.
Conclusion: The Time for Action is Now
Wealth inequality in the U.S. is not an inevitability—it is a structural challenge that can be solved through inclusive financial policies, workforce diversity, and expanded wealth-building opportunities. With $84 trillion transferring between generations, financial institutions, policymakers, and business leaders must act now to ensure all communities can participate in this historic wealth shift. By embracing equity-driven policies, financial inclusion, and minority-focused wealth management strategies, we can close the racial wealth gap and build a stronger, more sustainable U.S. economy.
About Practice Management Consultants LLC [PMC-LLC]
PMC-LLC, founded in 2019, is an award-winning consulting and training firm specializing in Supplemental Professional Development, Coaching, and Training (SPDC&T) for diverse financial advisors and leaders. Over five years, PMC-LLC has coached 800 licensed ethnically diverse financial advisors generating 4,962 hours of training via masterclasses and 1:1 sessions. Our firm emphasizes confidence, cultural competence, and leveraging diversity as a sales strength.
References :
Nielsen (2025). Engaging Black Audiences: How Brands Impact, Grow, and Win with Inclusion.
Citizens Bank (2023). The Great Wealth Transfer Survey.
University of Georgia, Selig Center for Economic Growth (2021). Multicultural Economy Report.
Cerulli Associates (2023). Diversity in Financial Planning Report.
WealthManagement.com (2023). Diversity in the Financial Advisory Profession.