More Black Americans Are Investing 3/7/25

Summary

Podcast Summary: Your Money Minute – "More Black Americans Are Investing" (03/07/25)

Episode Overview

This brief episode of Your Money Minute with Jessica Ettinger highlights the growing trend of investment among Black Americans, especially within the younger generation. Drawing on recent Federal Reserve data and insights from CNBC’s Sharon Epperson, the episode explores changing attitudes toward wealth-building and the impact of social media on financial literacy.

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Key Discussion Points & Insights

Rising Stock Ownership Among Black Americans

• New Growth Trend: More Black Americans are investing, with a marked increase led by younger individuals.
• Statistical Insight: Nearly 40% of Black households owned stocks in 2022—an all-time high, though still below the 60% stock ownership rate among White households.
  • (00:13 - 00:20) Sharon Epperson:

    "Nearly 40% of Black households own stocks in 2022. That's according to the most recent Fed data."

Generational Shift in Investment Approaches

• Older vs. Younger Generations:
  • Older generations traditionally prioritized real estate and homeownership before considering stocks.
  • Life insurance and real estate were often recommended as the initial steps for building wealth.
    • (00:20 - 00:33) Jessica Ettinger:

      "Older black investors were taught maybe don't put money into stocks until after you bought a house."

    • (00:33 - 00:38) Sharon Epperson:

      "Often real estate. Start with real estate. Maybe you get some life insurance as well."

  • Younger Black investors are focused on immediate returns and entry into the stock market, challenging conventional wisdom.
    • (00:39 - 00:47) Sharon Epperson:

      "Younger generation is saying, no, I want to be able to make money now. Nearly half of blacks who are investing are under 35."

Social Media’s Role in Financial Education

• Broader access to investment information via social media platforms is empowering more Black Americans to start investing earlier and with greater confidence.
  • (00:47 - 00:50) Sharon Epperson:

    "Wider access to financial information on social media, it's really contributed to the growth of black investors."

Resource for Further Information

• The episode encourages listeners to learn more at CNBC.com.
  • (00:50) Jessica Ettinger:

    "Lots more on this at cnbc.com."

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Notable Quotes & Memorable Moments

• Jessica Ettinger on the magnitude of growth:

  "40% of households is a big jump." (00:20)

• Sharon Epperson on demographic changes:

  "Nearly half of blacks who are investing are under 35." (00:39)

• Sharon Epperson on social media’s impact:

  "Wider access to financial information on social media. It's really contributed to the growth of black investors." (00:47)

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Timestamps for Key Segments

• 00:00–00:13 — Introduction: The rise in Black American investment
• 00:13–00:20 — Federal Reserve data on Black households owning stocks
• 00:20–00:33 — Traditional investment sequence in the Black community (real estate first)
• 00:33–00:47 — Generational change in investing preferences and habits
• 00:47–00:50 — Influence of social media on investment participation
• 00:50–00:56 — Resources for additional information

(Note: Advertising and disclaimers omitted as requested.)

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Conclusion

This episode spotlights a significant shift in Black Americans’ approach to investing, with younger generations driving new trends in stock market participation. The interplay between generational wisdom and new digital resources, especially social media, is accelerating this financial evolution. For further details, listeners are directed to CNBC for more in-depth coverage on this important personal finance topic.

Transcript

[A]

With a CNBC your Money minute. I'm Jessica Ettinger. More black Americans are starting to invest.

[B]

It's younger generation that's really leading this growth, particularly in stock ownership among Blacks.

[A]

That's CNBC's Sharon Epperson.

[B]

Nearly 40% of Black households own stocks in 2022. That's according to the most recent Fed data.

[A]

40% of households is a big jump. About 60% of white households own stock. Older black investors were taught maybe don't put money into stocks until after you bought a house.

[B]

Often real estate. Start with real estate. Maybe you get some life insurance as well. Younger generation is saying, no, I want to be able to make money now. Nearly half of blacks who are investing are under 35. Wider access to financial information on social media. It's really contributed to the growth of black investors.

[A]

Lots more on [e-mail] I'm Jessica Edinger, senior CNBC.

[B]

Hey, Fidelity, what's it cost to invest with the Fidelity app?

[C]

Start with as little as $1 with no account fees or trade commissions on U.S. stocks and ETFs. Hmm. That's music to my ears. I can only talk.

[D]

Investing involves risk, including risk of loss. Zero account fees apply to retail brokerage accounts. Only $0 commission applies to online US equity trades and ETFs and retail fidelity accounts. Sell order assessment fee not included. Some account types and securities excluded. Details of fidelity.com commissions Fidelity Brokerage Services LLC Member NYSE SIBC.