Strategies: Racial Wealth Building

Evidence-informed strategies to close the racial wealth divide. These solutions account for historical practices that established and maintain the wealth divide– and reduce wealth inequities by increasing income and assets, expanding employment opportunities, removing barriers to quality education, and increasing access to homeownership. 

5 Strategies
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Financial education for adults

Provide education on basic budgeting, bank use, credit management, bankruptcy, credit building and counseling, homeownership, retirement, divorce, etc.

Evidence Rating:
Some Evidence
  • Income

Individual Development Accounts (IDAs)

Support subsidized asset accumulation programs in which deposits by participants with low and moderate incomes are matched by program sponsors; withdrawals must be used for qualified expenses to retain matching funds

Evidence Rating:
Some Evidence
  • Income

Living wage laws

Establish locally mandated wages that are higher than state or federal minimum wage levels

Evidence Rating:
Some Evidence
  • Income

Matched dollar incentives for saving tax refunds

Support programs that provide matched dollar incentives for low or moderate income individuals to place some or all of their tax refund in a savings account

Evidence Rating:
Some Evidence
  • Income

Unemployment insurance (UI)

Increase compensation provided to unemployed workers looking for jobs by expanding eligibility, amount, or duration of benefits

Evidence Rating:
Some Evidence
  • Income