A recent study by Rice University found that people in Houston, about 2 out of every 3 are having a difficult time funding their basic needs such as food, gas, and housing expenses. This is called financial insecurity, meaning that people do not feel like they have enough money to live comfortably. For Black people the problem is even worse due to historical inequalities. Studies show that 20% of Black people consider their financial situation “poor”, the average value of assets for Black households is around $140,000 which falls far behind white households whose average is a little over $950,000.  According to Rice, home, car, and debt expenses are the main reasons Houston residents are unable to save money. Unfortunately, for many owning a home is a tough goal to reach because of previous unfair practices like redlining and discriminatory lending practices. Redlining is when banks refused to give loans to people in certain neighborhoods based on the race of people living there. It is called redlining because the areas that were denied car loans were marked red on maps. Discriminatory lending practices are when banks and other lenders treated people unfairly because of their race. Sometimes including higher interest rates or not offering loans at all, even if the person is qualified. Even after some Black people bought homes, the interest rate was too high for them to build their savings. Cars can also be another financial strain, because similar to owning a home Black people are also given higher interest rates also making it harder to save.  The rising cost of living in Houston also adds to the struggle, gentrification in some historic neighborhoods have pushed many families out of their homes causing them to pay much higher rent or mortgages elsewhere. Annual incomes also does not keep up with inflation, the Black population is overpopulated in the retail and food service industries, these jobs usually pay minimum wage, which is $7.25 per hour in Houston, this often causes workers to be unable to make ends meet. Without enough money to save or invest, financial insecurity […]

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