Page 33 - Payne Research Center ~ Money Matters

P A YN E C E N T E R . OR G
Long-term goals, such as saving for retirement or purchasing a home, require a different mindset and approach to financial planning. These goals often involve setting aside a portion of income consistently over an extended period and making strategic investment decisions.
These reports underscore the systemic barriers that HBCU graduates may face in building wealth. The burden of student debt can delay or prevent them from achieving key financial milestones, such as homeownership and retirement savings, which are essential for long-term financial security. Additionally, the historical and ongoing racial disparities in wealth accumulation mean that Black families often have fewer resources to draw upon, making them more vulnerable to financial shocks and less able to invest in their children’s future.
In light of these challenges, it is crucial for HBCU students to develop a long-term financial perspective and prioritize saving for the future. Financial education programs can play a vital role in equipping students with the knowledge and skills they need to set realistic financial goals, create effective savings plans, and make informed investment decisions. By empowering students to take control of their finances and plan for the future, we can help them to overcome systemic barriers and achieve greater financial well-being.
While short-term goals are not inherently negative, prioritizing them over essential long-term needs can lead to higher debt levels, difficulty achieving major financial milestones, and increased financial stress. When short-term gratification is fueled by easy access to credit and targeted advertising, it can further hinder longer-term savings habits and financial health (Rodrigues, Lopes, & Varela, 2021). However, people can learn to control their actions and influence their environment (Bandura, 1989).
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