Nasdaq Foundation funds investor education initiative

By Audrey Perrott

The Nasdaq Foundation has awarded Consumer Action a grant to fund an investment literacy and engagement project geared to women and BIPOC consumers. The project entails creating investor education resources, hosting a webinar series, and offering financial capability programming to help close the racial and gender investing gaps and improve the financial health of diverse consumers.

According to Pew Research Center, more than half of American households have investments in the stock market. However, there are stark disparities when you look at participation by race. A majority (61%) of white households own some stock, compared with 31% of Black and 28% of Hispanic households. Median investments vary as well. Among whites, the median is about $51,000. By comparison, the median for Black families is $12,000, and for Hispanic families, it is just under $11,000.

Prosperity Now’s The Road to Zero Wealth predicts that median Black household wealth will hit $0 in 2053 and median Latino household wealth will hit $0 in 2073. In order to change this trajectory, we need to provide investor education to consumers of color and encourage investing in the stock market to build wealth.

The investing gap between the genders is equally concerning. A 2021 NerdWallet survey found that less than half of women in the U.S. (48%) invest in the stock market. Other key findings from the survey include that women are less likely than men to have learned how to choose investments (69% of women, compared to 83% of men); women are more likely than men to delegate management of their portfolio (66% of women, compared to 55% of men); and anxiety and confusion are more prevalent emotions in women than men when thinking about investing (29% of women, compared to 22% of men, report feeling anxious, and 23% of women, compared to 17% of men, feel confused).

In the United States, women have a life expectancy of 81 and men have a life expectancy of 76. With more years of life to fund, and inadequate levels of savings, it is imperative that women receive investment education and start investing in the stock market.

Consumer Action is pleased to collaborate with the Nasdaq Foundation on this vital initiative, under which we will provide an investor education series for community-based organizations, educate women and BIPOC consumers on safe and sound investing, and encourage consumers to open investment accounts and make regular contributions.