A new report by the Urban Institute revealed some pretty sobering news about wealth inequality in America.
According to the report, in the past 50 years wealth inequality has not improved and it’s only getting worse. In 2013, the typical White family accumulated over $134,200 in wealth while Hispanic families accumulated $13, 700 and Black families accumulated $11,000.
It’s important to distinguish wealth from income. Income is money coming into a family while wealth is the family’s assets (for example: savings, real estate, businesses minus debt). The data gathered by Urban Institute shows that families of color, who will eventually become the majority, lag in building wealth.
There are a few reasons that Blacks and Hispanics are slower to build wealth including income inequality and the fact that Blacks and Hispanics are less likely to be homeowners or participate in retirement accounts.
Read the full report here.
Sources: CNN Money, Urban Institute