Empowering Conversations: How People of Color Can Discuss Finances with White Allies
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Vivian Tu, a financial literacy expert, emphasizes the importance of white allies being transparent about their finances to help close the racial wealth gap. She advises that people of color should feel comfortable asking their white friends about their income and mortgage rates. According to Tu, “True friends will share this information openly.”
Challenging Financial Inequities
Vivian Tu, a 27-year-old entrepreneur and former Wall Street trader, highlights the ongoing financial disparities faced by people of color and LGBTQ+ individuals. Despite progress, she notes that biases still exist. Tu’s experience as one of the few women of color on Wall Street gave her insights into the obstacles that prevent wealth accumulation among marginalized groups.
On her TikTok, Tu educates her 1 million followers about systemic racism’s impact on financial outcomes, such as the undervaluation of homes owned by Black families. She shared a story about Paul Austin and Tenisha Tate-Austin, who received a low appraisal for their home. After removing family photos and staging the home with images of a white family, their home’s value increased by $45,000.
Starting Financial Conversations with White Friends
Tu encourages open discussions about finances among friends of different races to foster understanding and support. She advises that white friends can help by sharing details about their mortgage rates, wages, and home prices, aiding their friends of color in making informed decisions. Tu suggests initiating these conversations through text or email if discussing money in person feels uncomfortable.
Key Questions to Ask White Friends About Finances
- What is the interest rate on your mortgage?
Transparency about the mortgage process is crucial for supporting people of color. Many Black and interracial couples, as well as LGBTQ+ couples, face unfair treatment from banks. Tu suggests asking white friends about their loan experiences and recommendations for reliable lenders.
- How much do you earn?
Tu points out that wage disparities persist for people of color in the workplace. She believes that white friends who care about equity should disclose their earnings and how they negotiated their salaries. This information can help friends of color advocate for fair compensation.
By encouraging these open conversations, friends can help bridge the financial knowledge gap and promote equity.