A lot of these people were scared to get in debt, scared to spend money," Chaves adds.Īmerica's current senior population was raised on the heels of the Great Depression, which resulted in the collective sentiment that money must be saved rather than spent. "Most of our grandparents and parents grew up in an era where everything was about savings. Dwindling pensions and an uncertain social security landscape only fuel the contrast between then and now.Īs someone who's helped clients of all ages with personal finance, Chaves notes that the greatest difference between millennials and their grandparents is how they feel about money. "The cost of living has just gone up tremendously." While it's true that salaries have risen overall over the years, they haven't kept at a consistent rate with inflation, causing wage stagnation. "It's way more expensive to buy homes now and get approved for loans," Chaves continues. In addition to socioeconomic oppression, factors like inflation, changing lifestyles, and viewpoints toward money, all make it harder for millennials to achieve the same quality of life as the generations before them, explains Natalie Chaves, CFP. Latina Women Earn Less Than White, Black, and Native Women-Here's How We Can Close the Pay Gap Money Mindsets-Then and Now Mission Asset Fund doesn't directly discuss the wealth gap with individuals they serve, but they're directly closing the divide by expanding access to crucial financial knowledge-like getting a checking account, building credit scores, and improving credit reports-that's traditionally been reserved by wealthier gatekeepers. "Our approach is not to lecture them with how we do things in this country, but to think: How can we support what they're doing with their money? And do it in a way that is dignified or respectful?" "You have to consider that people come and work and support themselves here, but they're also supporting a family in another country," Quiñonez adds. For example, immigrant communities tend to have a more collective idea of wealth multiple community members might pool their finances to send a cousin to college or support parents back home. Additional intersections, such as substance use, domestic abuse, and mental health challenges, also play a role in preventing upward social mobility.įor Quiñonez, an important part of dismantling this oppression involves honoring the cultural values that many immigrants hold regarding money-even when it's a far departure from the individualistic nature of the American Dream. "Whether it's racial, gender-based, or generational, I always remind people that the wealth gap is the last indicator that we use to quantify the extent of economic or social inequalities," Quiñonez explains. Quiñonez stresses that in the case of the populations served in those years (and in Latinx and BIPOC communities in general), generational wealth differences are often an accumulation of generations of discrimination. Quiñonez, CEO of the San Francisco-based nonprofit Mission Asset Fund, has been helping low-income immigrant communities build financial security for the past 15 years. ![]() ![]() To address the wealth gap in our own lives, it's important to contextualize economic inequality at large. What Is Generational Wealth-and How Do You Create It? Why Financial Inequality Persists
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