Tag Archives: Financial Literacy

Financial Literacy: 10 Things The Rich Do That The Poor Don’t x Why You Are Still Broke [Video]

Explaining 10 things that rich people do that poor people don’t that determines each one’s financial success

Music By: Ben Sound


Black Economics: Three Principles for Keeping Your Student Loan Debt Under Control


Life Article: Why The Black Community Chooses To Be Consumers and Not Owners. Part 2: Don’t just look like money, have it.

Written By: Ron B. Clark Mar 26, 2014

Nike, Apple, L’Oréal, Ralph Lauren, Louis Vuitton, and Mercedes. These are just a few of the brands that black America has bought into and have decided to spend their 1.2 trillion dollar purchasing power on. This is consumerism at its best and it’s running wild in the black community. The black community has lacked to develop the wealth mentality or financial literacy needed to become financially wealthy as a whole. We’ve been unconsciously taught and influenced by our most visible leaders and entertainers to become consumers. It goes as far back as to the 70’s when the once beloved, O.J. Simpson, was doing commercials for Hertz to influence black America to buy into Hertz’s services. It even goes back to the early days of hip hop when Run DMC became brand ambassadors for Adidas, and the Hip Hop community predominately black at the time, bought Adidas’ products. However, there was a time when blacks heavily bought and sold to black owned businesses, this was before desegregation.

Since then our most visible and influential leaders have capitalized off of their successes to gain endorsements from major corporations while influencing black America to unconsciously embrace a consumerism mentality (the poverty stricken mentality) by largely consuming, but has rarely taught or shown the black community the importance of owning. T.D. Jakes once said, “Give a man a fish and you’ll feed him for a day, teach a man how to fish and you’ll feed him for a lifetime, but show him how he can buy the pond and no one in his family will ever know struggle.” This is what we in the black community as a whole have neglected to teach and share — ownership; ridding our future generations of the financial struggles we’ve become accustomed to. This thought process is the growth mentality of the wealthy. We need to understand that neither wealth nor poverty are financial issues. Wealth and poverty at their core are mentalities. The amount of money we produce in the physical is a direct result of the financial mentalities we create and build. The black community’s financial mentality has been slow in its maturation process. Our mentalities have been hugely influenced by our current leaders to consume rather than own. In the process we have not developed an understanding of the difference between Assets vs. Liabilities. We’ve been taught to take on liabilities rather than accrue assets. “What we have to understand is that the wealthy work for profits they do not work for wages. They think 1099’s not W-2’s. The poor keep score by cars and clothes, the middle class they keep score by degrees and titles, but the wealthy they keep score by their bank accounts”, as Dennis Kimbro eloquently stated. This is where our mentality has went astray and as a result we have viewed cars, clothes, degrees, and titles as financial cornerstones (assets) in our lives, but they aren’t. They actually put us in deeper debt more times than not.

So, why does the black community spend so much on brands, and products. Is it that companies are advertising heavily towards the black community? No. You’d be surprised to find out that companies spend a very small portion of their advertising dollars marketing towards the black community as compared to what they spend in a whole. “In 2013 ,the top 20 advertisers that spent the most with media focused on Black audiences was a little more than $564 million which is a drop in the bucket compared to the total of $75 billion spent in 2013 on television, magazine, internet, and radio in a whole”, according to Nielsen. So, you see it’s our own and our major influences (made up of mostly entertainers) financial mentalities that have a played a significant role in not achieving wealth. Now, I don’t want to exclude or be misinterpreted of saying that the black community’s mentality is the only reason why we’ve had a difficult time in gaining wealth. As we all know, the extensive and often times brutal history that the people of the African diaspora have had in America. Slavery, Jim Crow, and many more prominent things & events have played a very large part but as we have made large strides in the last century to change the dynamics; in this current time our mentalities about wealth have to change. Before the last 30 to 40 years, the black community never knew what it was like to have much, let alone to be financially rich or wealthy. Therefore, when we were afforded the opportunity to become financially fit, we started valuing the wrong things and we’ve spent the last few decades adjusting and becoming accustomed to having money. However, now that we’ve broken through the financial opportunity ceiling it’s time to turn our mentalities into ones of wealth. Next week, I’ll continue this series discussing the difference between assets & liabilities, and how the black community should view and invest in them.

source: Ron B. Clark