How to Keep Your Money in the Black Community

For centuries, the Black community has been a powerful economic force, yet the wealth gap between Black and white Americans remains stark. One key factor? The circulation of the Black dollar—or rather, the lack thereof. Research shows that Black dollars tend to leave our community within hours, while in other communities, money circulates for days or even weeks before exiting. This economic leakage makes building businesses, creating jobs, and establishing generational wealth harder.

So, how do we shift from spending to truly investing in our community? It starts with intentionality—choosing to keep our money within the Black economy, supporting Black entrepreneurs, and leveraging financial tools to create lasting wealth. Let’s break down how we can take action today.

The Power of the Black Dollar: Why Where You Spend Matters

The numbers don’t lie: the Black community has an estimated $1.6 trillion buying power. If that wealth were harnessed strategically, it could fuel Black-owned businesses, strengthen neighborhoods, and reduce economic disparities. But the challenge is that much of our money quickly exits the community.

A 2019 Nielsen report found that Black consumers significantly influence industries like beauty, fashion, and entertainment, yet the companies benefiting from these dollars are often not Black-owned. Instead of merely spending, we must circulate our dollars in Black businesses, banks, and investment opportunities.

Supporting Black-owned businesses does more than boost individual entrepreneurs; it fosters economic independence, job creation, and wealth accumulation within our community. A thriving Black economy means more Black-owned banks, better schools, and increased homeownership. We actively dismantle economic inequality when we shift our spending habits to purpose.

Black-Owned Businesses to Support Right Now

One of the easiest ways to keep money in the Black community is to shop Black. The good news? There are thousands of incredible Black-owned businesses across industries, from tech to fashion, wellness, and finance. Here are a few key sectors to consider:

1. Black-Owned Banks & Financial Institutions

OneUnited Bank (Nationwide) – The largest Black-owned bank in the U.S.
Liberty Bank & Trust (Multiple states) – A long-standing Black financial institution.
Citizens Trust Bank (Atlanta-based) – Focuses on empowering Black entrepreneurship.

By banking Black, you ensure your money is reinvested into Black communities through loans and financial programs.

2. Black-Owned Grocery Stores & Restaurants

We Buy Black Marketplace – An online marketplace with various Black-owned products.
The Black Coffee Company – A Black-owned coffee business promoting financial literacy.
Slutty Vegan (Atlanta) – A plant-based burger joint that’s making waves nationally.

3. Black-Owned Beauty & Skincare

Fenty Beauty (by Rihanna) – An inclusive makeup brand revolutionizing the industry.
The Lip Bar – A vegan and cruelty-free cosmetics brand.
Alikay Naturals – A natural haircare line founded by a Black woman entrepreneur.

4. Black-Owned Apparel & Footwear

Telfar – A luxury yet accessible brand known for its “Bushwick Birkin” bags.
Sole Rebels – An eco-friendly Ethiopian footwear brand.
Fear of God (by Jerry Lorenzo) – A high-end streetwear brand.

Shifting your purchasing power toward these businesses ensures more money stays within the Black community, empowering entrepreneurs and creating jobs.

How to Start Investing in Black-Owned Companies

Buying from Black-owned businesses is a great start, but we must move from consumers to investors to build generational wealth. Investing means your money isn’t just being spent—it’s working for you. Here’s how you can start:

1. Buy Stock in Black-Owned Public Companies

Companies like Urban One (UONE) and Carver Bancorp (CARV) are Black-owned and publicly traded. Investing in these businesses means you own a piece of them and can benefit from their growth.

2. Invest in Black-Owned Startups

Many Black entrepreneurs struggle to secure venture capital funding. You can support them by investing through platforms like:

Seed At The Table – A Black-owned crowdfunding platform.
Black Angels Miami – A network of Black investors funding Black businesses.
Backstage Capital – Invests in underrepresented founders.

3. Support Black-Owned Real Estate & Development

Real estate is a key driver of generational wealth. Consider investing in Black-led real estate projects like:

NYS Community Trust Black Communities Fund – Focuses on Black-owned real estate development.
Buy the Block – A real estate crowdfunding platform that supports Black developers.

With these steps, you’re not just supporting businesses but building Black economic power.

Why Buying Black Isn’t Just About One-Time Purchases

One common mistake people make is treating “Buying Black” as a special event rather than a lifestyle. Black-owned businesses cannot thrive if we only support them during Black History Month or when social justice movements trend.

The Problem with Inconsistent Support

Many Black businesses struggle because they don’t receive consistent consumer support. Businesses can’t sustain themselves long-term if we only shop Black once a year or during a crisis.

The Power of Recurring Support

Subscribe to Black-owned products – Many Black businesses offer subscription services (e.g., BLK & Bold coffee, Oyin Handmade haircare).
Make Black businesses your first choice – Instead of defaulting to big brands, check for Black-owned alternatives.
Encourage your network to buy Black – Share Black-owned brands with friends and family.

The goal is to make Buying Black second nature, ensuring long-term sustainability.

How to Create Generational Wealth Within Your Own Family

Economic empowerment isn’t just about where we spend—it’s about what we pass down. The racial wealth gap is largely due to a lack of generational wealth transfer in Black families. Here’s how to change that:

1. Teach Financial Literacy Early

Many of us didn’t grow up learning about credit, investing, or wealth-building. Break the cycle by teaching your kids about:

Saving and budgeting
Compound interest and investing
The importance of credit scores

Books like “The Richest Man in Babylon” (by George S. Clason) and “The Black Tax” (by Shawn Rochester) are great resources.

2. Buy Property & Pass It Down

Owning property is one of the fastest ways to build generational wealth. If you own a home, hold onto it and ensure it remains in the family rather than being lost to gentrification or predatory sales.

3. Start a Family Business

Many wealthy families have businesses that get passed down. Create something your children can inherit, whether it’s real estate, a store, or an online business.

4. Establish Life Insurance & Estate Planning

Too often, Black families lose wealth because they don’t have wills or life insurance in place. A term life insurance policy can ensure your family doesn’t struggle financially if something happens to you.

From Spending to Investing in Our Future

Black economic empowerment starts with a mindset shift: we must move from consumers to investors and wealth builders. By intentionally keeping our money in Black businesses, investing in Black-owned companies, and passing down assets, we can create long-term financial stability for generations.