How BIPOC Families Can Build a Foundation for Generational Wealth

For many families in America, building wealth isn’t just about achieving financial security in the present—it’s about setting the stage for future generations to thrive. For Black, Indigenous, and People of Color (BIPOC) families, this goal often comes with unique challenges rooted in historical inequities and systemic barriers. However, with intentional strategies and community support, creating generational wealth is not just possible—it’s within reach. Here are some practical ways to start.

Begin With Financial Literacy and Empowerment

Building generational wealth starts with knowledge. Financial literacy isn’t something most of us learn in school, but it’s a critical foundation for managing and growing money effectively. Start by educating yourself and your family about key financial concepts such as budgeting, saving, investing, and credit management.

There are many free or low-cost resources available, from books and podcasts to online courses tailored for BIPOC audiences. For example, organizations like Operation HOPE offer financial literacy workshops specifically designed to empower underserved communities. Additionally, discussing money openly with family members can help demystify finances and create a shared understanding of long-term goals.

For families, introducing kids to financial concepts early can make a big difference. Simple activities like giving children an allowance to manage or teaching them to save a portion of birthday money can instill valuable habits. By normalizing these conversations, you’re setting the groundwork for future generations to feel confident navigating the financial world.

Invest in Assets That Appreciate Over Time

One of the most effective ways to build wealth is by investing in assets that grow in value over time, such as property, stocks, or even small businesses. Historically, systemic racism has made it harder for BIPOC families to access these opportunities—from discriminatory housing practices to unequal access to capital—but there are ways to break through these barriers today.

Homeownership is a powerful tool for building generational wealth. Programs like those offered by the Department of Housing and Urban Development (HUD) or local nonprofits can help first-time buyers navigate the process and secure down payment assistance. Once you own a home, its value can appreciate over time, providing a financial safety net for future generations.

If homeownership isn’t immediately feasible, consider investing in other appreciating assets. Stock market investments, for example, are accessible to almost anyone through platforms like apps or robo-advisors that allow you to start small. Many financial institutions now offer accounts with low minimum balances, making it easier than ever to begin building a portfolio.

Small businesses also hold immense potential for creating wealth. If you or your family members have entrepreneurial aspirations, look into grants and loans tailored for minority-owned businesses. Organizations like the Minority Business Development Agency (MBDA) and local community banks often have resources designed to support BIPOC entrepreneurs.

Leverage Community Support and Build Networks

Generational wealth isn’t just about what’s in your bank account—it’s also about the relationships, resources, and knowledge you can pass along. For BIPOC families, leveraging community support and building strong networks can amplify opportunities and create lasting change.

Community organizations and affinity groups can provide vital resources, from mentorship programs to financial assistance. Look for local or national groups that align with your goals, such as those offering scholarships, grants, or financial planning workshops. Faith-based organizations and cultural associations often serve as trusted hubs for these kinds of opportunities.

Don’t underestimate the power of mentorship, either. Seek out mentors who have successfully navigated paths you’re interested in, whether it’s starting a business, climbing the corporate ladder, or investing. Their guidance can help you avoid pitfalls and fast-track your progress. Similarly, pay it forward by mentoring younger family members or others in your community. The exchange of knowledge and support strengthens collective progress.

Finally, foster a legacy mindset within your family. Talk openly about goals like creating an inheritance, funding education for the next generation, or giving back to your community. These conversations help align everyone’s efforts and keep the focus on long-term success.

Moving Forward, Together

Building generational wealth as a BIPOC family in America requires persistence, creativity, and collaboration. While systemic challenges still exist, many tools and resources are available to help families create a legacy of financial stability and opportunity. By focusing on financial literacy, investing in appreciating assets, and leveraging the strength of your community, you’re not just building wealth—you’re creating a foundation for a brighter future for generations to come.