The way most Black and Brown families have learned about the value of money and the importance of saving has never been in a textbook way. Due to a lack of education, resources, and honestly, discrimination, many families have practiced and adopted their own rules when it comes to learning about money and accumulating wealth, something rapper and entrepreneur Saweetie can really relate to.
A 2019 survey revealed that 13.8% of Black households do not have a savings or checking account with a bank or credit union, with many citing a lack of trust in traditional financial institutions as the reason. While this statistic is not surprising, it is certainly an eye-opener at a time when we are increasingly having conversations about building generational wealth.
“When I was younger, I was never taught how to properly manage my finances,” Saweetie candidly told EBONY during a video call.
The Bay Area-born host vividly remembers growing up in California and how his young parents enriched his life in the best way they knew how — it wasn’t necessarily about making or building wealth, it was just about making sure the bills were paid and having a little extra money saved up for luxuries.
“I remember I hated asking my mom and dad for money and being told no, so I figured out how to make money myself through things like selling sweets.”
That same “go out and get it” mentality is so prevalent in our community. We find a way no matter what. For the “My Type” lyricist, that mentality grew with her from her teenage years through her time as a student at the University of Southern California (USC). She launched a successful clothing brand in addition to working as a waitress to help pay for tuition and to juggle her studies. For her, it was natural based on what she was taught. But it also came with some tough lessons.
“I’ve always loved money and the ability to buy my own things, but to be honest, what got me here was bad Financial decisions are always right. Spending money on the wrong things, or giving money to the wrong people, forces you to be smarter and wiser. I’m just starting to understand the business side of things. But I got here through failure. And I learned the real financial do’s and don’ts of making money.”
Fast forward, and Saweetie is nothing short of a success. Not only is she a successful rapper, but she also has dozens of lucrative brand deals. As she gets older and thinks about having children, she understands the importance of financial wellness and the impact it can have on not only her own future, but future generations.
During the pandemic, the CEO of IC Records teamed up with his grandmother to start the IC Baby Foundation, which educates Black and brown youth in the Bay Area about money. Kids learn everything from budgeting to opening savings accounts to financial investments. This is crucial because, according to a recent FDIC report, more than 5.9 million U.S. households do not have a traditional bank account, and more than half of those are from diverse communities (Black, Hispanic, Native American).
“It’s important to learn the right way to accumulate wealth beyond just putting your money in a shoebox like I was taught,” she explains. “People in our community don’t get taught that a lot. Kids need to know this, because the better you know, the better you can do it. When I was a kid, my parents were young and they didn’t teach me this. It was enough to have money saved up somewhere. So when I started building wealth, I didn’t know what to do with it. I want other kids to know what to do when they create wealth and know where to spend it.”
To break down taboo conversations around money and personal wealth, financial institutions like Wells Fargo are being intentional about where they work with consumers, especially those living in low- and moderate-income communities, including Saweetie’s hometown of San Francisco. The bank recently opened a HOPE Inside center in the Bayview neighborhood and is offering free financial coaching as part of its Banking Inclusion Initiative, a 10-year effort launched in 2021 that aims to provide more affordable financial resources to unbanked or underserved Black individuals and families. The great thing is that you don’t have to be a bank customer to take advantage of the free financial coaching.
With the checks still coming in, Saweetie says sticking to a budget and learning about proper investment strategies have been key to her new financial wellness journey. She’s been sitting down with her team and taking more time to understand exactly where her money is going, and in the process, she’s also learning about how the stock market works.
“There’s no reason to spend a lot of money on something that’s going to lose value over time. It’s nice to think you’ll always have money, but I’ve had to take a step back and make a proper budget and look at my statements properly. I’m lucky enough to have money coming in from my job, but the real test of being your own boss is making the most of it and making it grow. So my biggest advice to anyone who’s new to money is to sit down with someone who knows their job – a banker or accountant – and make a financial plan from the start so you don’t hit roadblocks later on. We all hate having less money. Them “It’s a conversation,” the rapper jokes.
Throughout the roughly 30-minute conversation, a common theme resonated: proper financial education. Not just education on the importance of having a bank account, but education on the proper means of building wealth.
She continues to be vocal about her financial journey, engaging her community and fans in transparent conversations and encouraging them to take control of their finances. Whether by highlighting Wells Fargo’s banking inclusion initiative or through her own organization, she encourages people to manage their debt, budget and ultimately have the basic bank account and savings they need to cover their daily expenses and spending.
Finally, Saweetie had one last request.
“Governments need to introduce financial literacy courses to students early on so that it becomes second nature. Even if parents don’t have the funds or knowledge, they can at least pick it up in the school system. It’s a life skill. Please!”
To learn more about Wells Fargo’s Banking Inclusion Initiative, visit wellsfargo.com/banking-inclusion-initiative.
