Just as generational wealth exists, so does generational poverty. Generational wealth refers to any kind of assets that are passed down from one family generation to another. Generational poverty is debt, negative goodwill, or other deficits that are passed from one generation to the next.
Often, generational wealth is transferred as an inheritance. Between 1995 and 2016, for example, more than 55% of inheritances were less than $50,000. At the other end of the wealth spectrum, inheritances exceeded $1 million only accounted for 2% of inheritances. Most inheritances in the US fall below the tax threshold for incurring federal taxes. This taxable threshold is $12.92 million in 2023 and $13.61 million in 2024. Any inheritance less than these amounts is not taxable.
The wealth gap in the US is substantial and continues to widen. The bottom 50% of the US population accounts for 2% of America’s wealth. The top 10% of the US population accounts for 74% of America’s wealth.
White families have approximately six times more wealth as the average Black family and five times the average Hispanic family.
RACIAL DEMOGRAPHIC | MEDIAN WEALTH IN 2022 |
WHITE | $287,000 |
BLACK | $45,000 |
HISPANIC | $61,000 |
Just as behaviors are learned, they can be unlearned. Just as unhealthy behaviors are learned, healthy behaviors can be learned, repeated, and transferred. Generational poverty can be destroyed. Nicole Michelle is on a mission with the Billion $ Impact to lead 1,000 individuals to millionaire status.
To schedule a consultation with Nicole Michelle, feel free to connect with her on the Home Page.
Nicole Michelle
Finance and Money Wiz
December 22, 2023
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