Retracing Our Paths - Remembering Our Origins
Photo by. Yan. Krukau
P R O F I T - NOW
“Wealth is not only a question of financial savings; it provides access to the political process and therefore, exerts political influence. . . Eliminating the disparities between Black and white wealth is a generational undertaking, but it is one this country can and must tackle.”
—Center for American Progress
By Sterling M. Hawkins, MSW, LCSW-C, LICSW
While the focus of this essay is on financial wealth, it’s important to see wealth as distinct from income. For the Black community, wealth has always represented social power and influence that provides access to education, housing, and healthcare. Therefore, wealth is best defined as a state of being. The concept of wealth is one that endures both within and across generations. And this is why Blacks have struggled to attain it. And over the last century, African Americans have experienced some gains. Financial wellbeing is the first step that allows individual families and communities to meet current and ongoing financial commitments while feeling secure about their future.
In 1921, two Black American entrepreneurs, O.W. Gurley and J.B. Stratford formed an informal partnership to develop Greenwood, an all-Black district in Tulsa, Oklahoma. Both men shared a vision of self-sufficiency—a community where they could remain independent from white communities and escape the Jim Crow South. Their story began in 1906 when Gurley arrived in Tulsa, purchased land, began subdividing it, and sold plots exclusively to other Blacks.
Stratford, who was already a resident of Tulsa, focused on real estate, building rental units and eventually a luxury hotel that became the symbol of Greenwood’s prosperity. Their estimated net worth was over $150,000—equivalent to nearly 7.5 million today.
Between 1910 - 1920 Tulsa’s population grew nearly fourfold. The Greenwood district famously known as the Black Wallstreet of America grew into almost 40 city blocks, home to 108 Black-owned businesses (physicians, lawyers, bankers and businessmen and women) with its own hospital, banks, theaters, library, salons, restaurants, and numerous churches, serving a population of over 11,000 people. (Long, 2025)
“On the morning of June 1, 1921, this financially independent and vibrant community that had been built and sustained by Blacks became the site of one of the worst race massacres in US History, fueled by white supremacists, where hundreds of people were killed, thousands were left homeless by fires, and hard-earned, substantial Black wealth and prosperity were destroyed.” (South et al., 2022)
The conflict arose when two Black men (not Gurley and Stratford) were falsely accused and charged with assault. In retaliation, a white mob looted and burned businesses, churches, homes, and community institutions. “Many residents saw their wealth reduced to ashes. This was not an isolated event, but part of a broader pattern whereby racist Americans have used violence and discriminatory policies— such as redlining, gentrification, and economic exclusion to suppress Black advancement.” (Long, 2025b)
Present-day racial exclusion is attributable to the many government and institutional policies that were historically instituted by whites to suppress African American progress. “While Blacks contributed to 12 generations of unpaid labor during enslavement that generated tremendous wealth for White families and shored up the U.S. economy, they entered the era of Reconstruction with little to nothing. During the Jim Crow period, laws designed to bolster economic outcomes for specific vulnerable populations— for example, Social Security for older adults and the G.I. Bill for veterans — were structured and executed in such a way to exclude Black people.” (South et al., 2022b)
To complicate the situation, Blacks were subject to predatory lending by large U.S. banks accompanied by discrimination within the real estate industry that targeted Blacks living in low-income housing. U.S. tax law further complicates these intergenerational disparities, which provide preferential treatment for inherited assets. (South et al., 2022c)
The impact of such policies creates significant challenges to overcome. The result is seen in culturally defined patterns that explain why some African Americans have suffered more than other marginalized racial groups. Discriminatory public policies have created functional deficits that have become internalized by families and whole communities that are in response to the wealth gap trauma in relation to impaired mental health. Let me explain.
Research studies conclude that individuals from socioeconomically disadvantaged households have higher levels of trauma resulting from unmet needs. The original ACE (Adverse Childhood Experiences) studies began in 1985 as a collaborative research project between the Centers for Disease Control and Kaiser Permanente Health to examine the correlation between childhood trauma and later-life health outcomes. While the research did not focus on race or ethnicity it did examine “experience”. The childhood experiences labeled as trauma I believe are inclusive and representative of all ethnic groups subjected to prolonged trauma. This includes African American children whose trauma would occur at higher percentages than whites who at the very least possessed some form of health insurance. (Goldstein et al., 2020)
Researchers examined the following types of trauma— Abuse (physical, emotional, sexual), Neglect (physical and emotional), and finally, Household Challenges (parental separation or divorce, substance abuse, mental illness, incarceration, or domestic violence ). If any one member within a single household directly experienced one or more of these conditions, their risk for adverse health outcomes increased in proportion to the number of adverse experiences during that individual’s lifespan. Childhood environments that are abusive, neglectful, or present physical and emotional challenges do impact the biopsychosocial development of children. And these experiences have a cumulative effect that extends well into adulthood. Parents and guardians who themselves have experienced trauma may be at a disadvantage in offering their dependent children what they have failed to attain for themselves. (Goldstein et al., 2020b)
The original ACE study has expanded into branches of new and independent research concerning the effects of trauma. Studies now include— Environments (i.e. the context in which trauma occurs) where individual experiences often originate. Some of these environments include Poverty/ Discrimination/ Community Disruption/ Poor Housing Quality and Affordability/ and Violence. (“Adverse Childhood Experiences,” 2022)
More recent studies on individual experiences and environmental conditions have reached similar conclusions. Adverse childhood experiences are often linked to adverse family experiences. And adverse family experiences heighten distress, often creating family conflicts and a disruption of primary support systems, role confusion, and shame. (Reese et al., 2022)
Economic wellness is a critical component of good health. When we examine the outcomes from 200 years of oppression, it’s no mystery to conclude that enslavement, discrimination, and wealth deprivation have dealt a huge physical and psychological blow to many in the African American community.
A strong correlation exists between a safe and stable living environment and optimum mental health. Types of trauma closely associated with economic instability include, but are not limited to, prolonged physical and social conditions involving unemployment, the lack of affordable housing, education, and health care, which often result in toxic levels of distress. Some experience this as chronic depression, anger, avoidance behaviors, anxiety, impulsive decision-making, difficulty with goal setting and problem-solving, interpersonal/relationship conflicts, and denial. Each of these negative cognitive and affective states can be observed existing alone or in combination with other symptoms suggestive of cognitive-behavioral dysfunction. The outcome of unmet needs can be seen in how Black Americans cope with reducing the symptoms associated with financial instability.
These are tough, multi-systemic problems that are inextricably rooted in generational trauma. It would be unfair to attribute such problems to the absence of wealth alone. However, given that so much of our psychological identity comprises what we own and our perceived net worth, it can't be easily dismissed or ignored.
We cannot ignore or dismiss the severity of intergenerational trauma and its impact on building Black wealth. What is the solution? How can mental health practitioners best help African American clients affected by low income and financial insecurity?
There are numerous ways to get there, and none without challenges. However, it’s important not to become too enmeshed in the numbers. The research describes what we’ve long believed: that no progress will be made without major social and political shifts toward removing barriers preventing African Americans from competing economically and building wealth.
When working as individuals, it’s helpful to begin on a micro-level and help clients ask themselves, “What can I do to eliminate or minimize how exclusionary policies impact me personally?” When we begin with where the client is, the task becomes more manageable and perhaps more personal in ways that allow clients to see that small changes over time can make a difference in their future and the choices available to their children. These decisions may lead to outcomes that will positively alter their present circumstances and the next generation for their future good. The following three approaches may be helpful.
Talking About Money:
Often, parents wait to start teaching their children about money until they are adolescents. However, understanding money, what it is, and what it can and cannot do for us is foundational to understanding its value and how we choose to allow it to shape our actions. Such an education begins in early childhood. If we have always chased after money only to fail and/or to lose it or have it taken away, our experiences will be reflected in those lessons (implicit and explicit) about money we teach others.
We fail to talk about money because of the pain associated with not having it. As African Americans we need to be aware that our relationship with money is connected to our collective trauma of being without it. Some of us grew up in less-than-desirable circumstances and never had enough of what we needed. Therefore, if we are fortunate enough to escape those conditions, we may try to compensate for those losses in ways counterproductive to building wealth.
What this looks like will depend on whatever is lacking. For some, it was food insecurity; for others, it was being unable to afford nice clothing, a new car, an education, a vacation, or a home. The thing we always wanted when we were young, but no one in our family possessed. Or we were told that we couldn't have it because it costs too much, we don’t earn enough, are already in debt, and no one will buy it for us. All of these scenarios begin with a conversation about money. (How Black Families Can Build Generational Wealth|U.S. Bank, 2025)
Increasing Financial Literacy:
Talking about money begins with understanding “currency” a fluid concept that can be applied to money and anything with an attached “value”. As an adult, it’s crucial to define money’s role in your own life before you attempt to teach the concept to your children. Defining the role that money serves in your life and the value it creates beyond the material things it allows you to purchase is the beginning of developing a healthy relationship with money and its relation to wealth. Because of racial and ethnic disparities, access to financial resources has historically been limited. Now, education on building wealth abounds on numerous social-media platforms. There are also many Blacks serving in the role of: CFP, CFA, CIMA, and CPA, who, through their professional training, are qualified to educate and inform their clients on how best to save, spend, and invest their money.
Clients and Consumers of financial services should do their homework and complete background checks for those individuals and firms they wish to utilize for help. They should compare and contrast what they observe across multiple sources to validate credibility and build a general knowledge base that will allow them to set short- and long-term goals and develop the skills to navigate complex financial environments and systems, access capital, and create economic opportunities. (Shrm-Cp, 2023)
Adopting an Investment Mindset:
Over the years, African Americans have had a bitter-sweet relationship with investing. Financial investment seems like a foreign concept when you’re worried about the mortgage, rent, or paying for groceries and school fees. I stated previously that it’s complicated because of our history and inability to earn, save, or properly invest for the future. However, developing an investment mindset requires a vision for the future. Your future. Creating a realistic vision based on actual numbers will enable you to grow and expand. It requires a commitment to identifying things that are within your control and things that can be accurately measured. There are multiple ways to adopt an investment mindset. For those seeking to begin the process, I offer the following suggestions:
Start Small: Even investing or saving a small amount of money can be a powerful first step. Experiencing the process of buying and potentially selling an asset, and observing its value fluctuate, provides firsthand learning.
Learn from your Mistakes: Experiencing investment losses (a normal part of the process) and analyzing what went wrong can be a valuable learning opportunity, fostering a more cautious and informed approach in the future.
Regulate your Emotions: Allow skilled mental health therapists to help you develop self-regulation while learning to manage emotions like fear and greed, which can lead to impulsive investment decisions. Emotional regulation requires delayed gratification and patience that prioritizes security.
I believe that, as Black people, our psychological healing with wealth can be summarized in the following quote: “Never ever chase money. You should chase success because with success, money follows.” – Wilfred Emmanuel-Jones
According to Jones, a successful Black farmer and entrepreneur, having money results from success. What success looks like for you or me may be very different. However, if we fail to define individual success, all we'll do is chase money. The implication is that we should chase “meaning” with a purpose in mind and not money as an end. A purpose that is sustainable even in the absence of monetary rewards.
From a generational perspective, we must first ask ourselves what success looks like for our families, neighbors, and communities. When we begin to answer these questions, we will discover that true success has little to do with money. It's much more than money. It involves reciprocity, giving back, and getting something in return. Then, we can begin to heal, and when we begin to heal, we will begin leaving a rich legacy of wealth that will endure for generations to come.
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References:
Adverse Childhood Experiences. (2022). In https://www.ncsl.org/health/adverse-childhood-experiences. National Conference of State Legislatures. Retrieved April 27, 2025, from https://www.ncsl.org/health/adverse-childhood-experiences
Goldstein, E., Benton, S. F., & Barrett, B. (2020). Health risk behaviors and resilience among Low-Income, Black primary Care patients. Family & Community Health, 43(3), 187–199. https://doi.org/10.1097/fch.0000000000000260
How Black families can build generational wealth | U.S. Bank. (2025, April 23). https://www.usbank.com/wealth-management/financial-perspectives/financial-planning/black-families-build-generational-wealth.html
Long, L. V., Sr. (2025, February 25). Rebuilding Black Wealth: Lessons from Black Wall Street. Forbes. https://www.forbes.com/sites/lenwoodvlongsr/2025/02/25/rebuilding-black-wealth-lessons-from-black-wall-street/
Reese, E. M., Barlow, M. J., Dillon, M., Villalon, S., Barnes, M. D., & Crandall, A. (2022). Intergenerational Transmission of Trauma: The mediating effects of family health. International Journal of Environmental Research and Public Health, 19(10), 5944. https://doi.org/10.3390/ijerph19105944
Shrm-Cp, T. G. M. A. (2023, December 29). Breaking Barriers: The power of Black financial literacy. Money Talk With Tiff. https://moneytalkwitht.com/blog/black-financial-literacy/
South, E., Venkataramani, A., & Dalembert, G. (2022). Building Black Wealth — The role of health systems in closing the gap. New England Journal of Medicine, 387(9), 844–849. https://doi.org/10.1056/nejmms2209521