Unlocking the Doors of Poverty

Home ownership has been and continues to be the foundation for building multi-generational wealth. Over time, real estate generally keeps pace and even out-performs inflation. A lifetime of renting, without contributing to a growth fund to compensate for the equity lost due to not owning real estate, significantly reduces net worth. This means less to bequest to children and grandchildren. Another keystone of building net worth is adding life insurance, especially during the early earning years. Life insurance creates an estate for a young family should a premature death occur.

Historically, for people of color with lower incomes, home ownership has been a struggle. Personally, I have found it curious why we have an economic system that offers the most opportunity to create wealth, and that attracts entrepreneurs from all over the globe, yet we offer little to no financial education in our public schools. Why do young adults leaving high school have no concept of the banking system, or how a mortgage works, why a credit score matters, and the power of compound interest?

What if at an early age, say the second grade, each child was given $1,000 in a growth mutual fund and for the next 10 years had to chart the balance, investigate the stocks / companies, and evaluate the investment fees? What if they could contribute to the account? Imagine the lessons they would learn about stock dividends and capital gains – and the associated taxes. If we taught our young people about the risks and perils of debt, credit cards, and student loans, would they make different choices?

If money is power, then knowledge of money is a justice issue. Teaching people of all ages about money, especially in communities that are low income, unlocks the door of poverty and opens the door to home ownership. I believe the church offers both a healthy and counterculture perspective on money. John Wesley’s concept of earning all we can, saving all we can and giving all we can, could be the centerpiece of a ministry of money program in your church.

Please know that the Foundation has grant money available for justice and educational ministries. Give us a call to explore how we can partner with your church. Opening the door of financial knowledge is a way of setting the captives of poverty free.