The banking system in the United States historically established practices that restricted financial access for Black communities. From the early 1800s, when depository institutions were created, Black Americans were largely barred from accessing these services. Even after slavery was abolished, discriminatory practices such as redlining and subprime lending continued to marginalize our community. As a result, many Black families relied on alternative service providers, such as churches and Black-owned insurance companies, to meet their financial needs.

Today, the racial wealth gap still remains a significant issue. The median net worth of Black families is about $24,000, compared to $250,000 for white families. Black households are also disproportionately unbanked and underbanked, with the highest rates of being denied or approved for less credit than requested, regardless of household income. These barriers have hindered the ability of Black families to build wealth and secure financial stability.

These problems are not easily solved, but the first step in closing the racial wealth gap is improving financial literacy. This education turns simple money management ideas into practical actions, enabling people to make smart decisions — from boosting credit scores to investing wisely. This basic knowledge is vital for communities that have historically been without these essential resources, and there are several local organizations doing their part in expanding access to financial education.

Richmond Heritage Federal Credit Union (RHFCU) has been a steadfast ally in addressing these financial inequities. Our mission has always been to provide fair and responsible financial services, ensuring that our members have access to the tools they need to achieve their financial goals, and we’ve taken a proactive approach to address these challenges through our offerings of financial advisory services, financial planning, estate planning and retirement planning. These initiatives are designed to empower our members with the knowledge and tools they need to achieve financial independence.

Our commitment to economic empowerment is further demonstrated through our collaborations with Virginia Union University, Bon Secours Community Hospital, Richmond Public Schools, Richmond NAACP and Self-Help Credit Union. These partnerships help us maintain our institutional and historical significance while growing our member base and advocating for financial empowerment in the Richmond community.

Not far from Richmond, several organizations in Hampton Roads have also taken up a similar mission and have achieved remarkable success. First Genesis of Virginia in Norfolk, for example, educates the Black community on financial planning and investment, empowering individuals to harness their economic power. Hampton University School of Business has demonstrated its commitment to financial literacy through its recent victory in the HBCU Financial Literacy Bowl, showcasing its students’ proficiency in financial principles. Additionally, The Urban League of Hampton Roads provides essential financial coaching and resources, helping individuals to establish good money habits and improve their financial wellbeing.

To truly address these financial disparities, we must all prioritize financial literacy and education. Richmond Heritage is committed to this mission, providing the resources and support needed to empower our members and foster financial stability. We call on our community, partners and stakeholders to join us in this effort across the commonwealth. The future is bright, but it’s in our hands to make it happen.

Tonji Coleman is the branch operations manager for the Richmond Heritage Federal Credit Union, a member of the Virginia Credit Union League. Email her at tonji.coleman@richheritage.org or reach her by phone at 804-233-8872.