Money management wasn’t taught in my Caribbean household

As a Black woman from a working-class background growing up in the 90s, talking about money with an ounce of optimism was rare. Minding your business was the thing to do.

‘As long as your bills are paid and there’s food pon di table, you’re blessed’, the generations before me would say.  

They weren’t wrong. And it taught me gratitude. But, looking back, the lack of discussion around money may have impacted my financial views and confidence. It was the whole ‘why save what you can spend’ mindset (although I don’t doubt that socioeconomics played a part in this too). 

And as for investing, what’s that? Even when I had a better idea in my late 20s, I believed it wasn’t for people who looked like me, even if I could afford to. 

The Windrush generation. 

Part of the Windrush generation, my grandma came to England from Jamaica to help rebuild post-war Britain. Caribbean economies were struggling too, and working in the UK was considered an opportunity to achieve a better life. Caribbeans were starting from scratch. And institutionalised racism meant they had to work extra hard to establish themselves in British society.  

Many of the Windrush generation were well educated, but their qualifications weren’t recognised or valued, often leading to lower-paid jobs. And it wasn’t uncommon for banks to refuse them financial services and loans for mortgages, hence the popularity of pardner schemes¹ (a type of community loan scheme).  

Such challenges didn’t present room for financial education and money management. Their focus was immediate survival, stability and integration into British society. This had a knock-on effect of subsequent generations.  

Fast forward to today and statistics show generational wealth in Black communities is still on the backfoot.  

Data from the Runnymede Trust shows that Black British Caribbean households hold around 20p for every £1 of White British wealth, and Black African households is approximately 10p².  

Furthermore, there’s work to do on confidence with managing money too. Two thirds of the Asian (65%), black (65%) and mixed (65%) groups do not feel confident doing this. This contrasts with half who lack confidence among the overall population (51%) and the white population (49%)³.

It’s good to talk money. 

Of course, this is just my own personal experience. So, I caught up with some of my Black peers, who were willing to talk money, their experiences and the lessons they’d learned. Perhaps they could give me some perspective.

Money lessons I’ve learnt. 

Three conversations later, and with time to reflect, I began thinking about what I’d tell my younger self, based on my own experiences and from listening to others.  

1. Investing doesn’t discriminate. Everyone deserves the opportunity to have a secure financial future. You included. And the sooner you start, the better. You’re already doing a great job by saving into your workplace pension, which can help you reach your financial goals.
   
   Learn about the benefits of investing early
    
2. There’s power in saving little and often. If you find - for whatever reason - that you have a little extra money, a small increase in your workplace pension contributions today can make a big difference to your pension pot tomorrow.
   
   See the power of small amounts
    
3. Knowledge is power. Read more, learn more and empower yourself to make more informed financial decisions and build the confidence you need to start investing.
   Read our five principles for good investing

And remember, money isn’t a taboo. It’s good to talk about it. Normalise talking about it for your financial wellbeing with friends and family. You might all be surprised what you can learn too.

Source:

¹ The Guardian - 16 June 2023
² The Colour of Money - runnymedetrust.org
³ UK Adult Financial Wellbeing Survey 2021 Ethnicity Report

Important information - This is for information purposes only and the views contained are not to be taken as advice or a recommendation for any product, service or course of action. The value of investments can go down as well as up, so you may get back less than you invest. You cannot normally access your pension savings until age 55. This is due rise to 57 in 2028.