Maybe the Biggest Problem
If financial education tops the list for why a significant gap remains, I believe our attitude and mindset towards money and wealth creation vies for a close second. Ultimately, however, lack in both areas and unprecedented exposure to the predatory practices which plague our community are what keeps up engaged in anti-wealth building behavior.
Here are 5 financial scams I wish Black folk would just stop allowing to flourish off of our financial demise, if not for our generation, perhaps for the next.
1. Check Cashing Centers – We have allowed check cashing services to thrive on every corner in every ‘hood across our nation. Why? Because somewhere along the way we were told that they were more “convenient” than opening a bank account. Maybe the convenience comes from the fact that most centers double as the neighborhood corner store, as well. Nevertheless, the astronomical fees charged at check cashing centers cannot truly be beneficial for anyone
For example, cashing a $1000 dollar check might incur a 3-5% fee, regardless of the origin of the check. That is an average of $40 in fees. Even a 1.5% fee would be $15, while most banks that charge monthly service fees, charge an average of $10 per month and allow unlimited check cashing privileges or better yet, direct deposit.
Even for those that would argue that a negative banking history prohibits them from enjoying a traditional bank account, there are sites like http://www.getsecondchancechecking.com/ that offer second chance solutions for those that have been added to ChexSystems.