7 Ways Racism Is Ruining Americans' Financial Lives

In this episode, Chelsea lists some major ways systemic racism impacts Americans' financial lives, from racist practices such as redlining to predatory lending practices. This is by no means an exhaustive list, but hopefully helps shed light on how inequitable American society was designed to be — because we can't talk about personal finance without talking about both the disadvantages and privileges we are born into.

[MisaMouri]

This is why I come to this channel. You dont see this on most finance channels. They are too busy telling you to work 6 jobs and eat beans and rice for 3 meals a day

[christi-annebeatty]

Over here thinking I’ve outgrown TFD, but then reminded that the big white guy investing finance YouTubers don’t address real issues that face real people and address how racial privilege affects their investing. Love it. Here for it. Thank you for always educating people. Lili Thompson is a great source of info that talks about this as well if you love real estate investing in particular. 🥰👏🏿🙌🏿

[deniseblanchard]

You have succinctly summarized a huge amount of crucial information on this topic into a less than 25 minute video. Brava!! 😊

[NaturallyNerdeeNicol]

I saw some television series clip with Kerry Washington and Reese Witherspoon where Washington's character states "You didn't MAKE good choices, you HAD good choices."

[stefanossmitty]

This was very well done. Sadly, as I’ve seen in the comments, there will still be people who say “well they should work harder, things are different now.” No amount of evidence will change their way of thinking. To people who still have that “pull yourselves up by the bootstrap” mentality, here’s an analogy for you. Imagine starting to learn how to play tennis today and in 1 month I come back and tell you to step on the court with Serena Williams and I expect you to be competitive with her. Of course, your reaction would be “are you crazy, I’m just learning and she’s been playing for years.” What if I say “well you’re both on the same court with the same racket and balls.” That’s kind of the same thing and the point of the video.

[alfamaize]

Chelsea- a very real side effect to wealth inequality and home ownership issues is part of the reason education is so separate- we base a significant amount of local school funding on home property value. So in areas where property values are low because of a LOT of reasons you point out- the local school is also less funded than other areas in a state. The natural result of underfunded schools is what you point out- less opportunity- IP classes, tech classes, etc.

There are a lot of school funding issues that trace themselves right back to red-lining and long term economic disparities- including some of the new ideas like "school of choice" (which only works when everyone can even make the choices).

[Arcticstar]

I’m glad to see you covering this. The history of racism has created a larger wealth gap, which, even if those systematic racism systems have now ended, have lasting effects on households and attitudes today.

[historiansrevolt]

Something to think about when you think "slavery ended so long ago". In 2020 there is a SON of an enslaved person still alive. His father was enslaved as a child. Not that long ago.

[rereAL]

COME THROUGH CHELSEA!!! I appreciate this. Out of all the financial channels I subscribe to, you are the ONLY white person who addresses this!!!! Thank you!!!

[aleell]

Chelsea, thank you so much for posting this. Trying to discuss these issues with other friends and family has been difficult, and this video provides facts and context to help with those discussions. Big thumbs up!

[shannonransom]

Literally the only reason I don't have student loans is because a distant relative of mine married rich, sold an expensive house in 2006, and passed that money along to my grandmother. Any and all financial success I have will be completely contingent on that fact.

[neonpandas]

Thank you for discussing this, comfortably and with honest intention. I see many content creators on YouTube either not talk about it or do so strictly to win over a certain audience. We can tell what’s genuine. It’s honestly refreshing to see a white person show how unrepresented minorities are and how the system affects us, even if it has no correlation to you personally. I appreciate you simply acknowledging it as a problem, since it’s disregarded by many. I appreciate your researched facts as well as your expression of it. I love all of your videos though as an early subscriber!

[NaturallyNerdeeNicol]

I felt as if this was the history/financial lesson I wish I would have gotten earlier in life.

She kept the material objective.

[JessicaDante]

This is such a good video. I used to have the same mindset of most finance Youtubers saying “stop spending! Save more! Make More! No excuses!” And I didn’t think about how as a white middle class woman, I can do those things to be more sound financially. However so many CAN’T because they haven’t had access to privileges that I have and it’s nearly impossible for them to get out of the cycle of being on the bread line. I’ve learned a lot about this from you Chelsea, mostly.

[RobertInnis]

I have quite a few of your videos in my que. Had to watch this one. So happy you are diving into this.

[fabihat]

I have been a fan of TFD for a long time, you all have really empowered me to take reigns of my personal finance and become confident in my abilities to do so. I am really proud to see how you continue to use your platform to talk to your audience about these pertinent issues. I have not personally seen many other financial literacy channels dive into the systemic barriers to wealth building, and I hope now many will take notice and follow your example. Thank you Chelsey, you’re the best!

[KatNip]

Chelsea, you did a fantastic job of addressing this issue. Thank you.

[dora]

nothing but respect for MY president, Chelsea Fagan

[Csb]

Fantastic video! I was having this conversation with an asian friend who honesty wanted to stay ignorant and believe these problems don't exist because her family immigrated here from the Philippines and gained wealth, therefore she believed every other POC who doesn't "make it" is just lazy. But she forgot the model minority myth and the laws that supported that idea is what helped. It's amazing how racist ideas like believing the color of your skin dictates how hard working you are is still something many nonblack people of color still hold onto, mostly to feel good about themselves in opposition to whiteness.

[kaleigh]

I knew the situation was bad, but this is shocking. Everyone needs to watch this video. Thanks for opening our eyes.