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Black Americans account for 13.6% of the population, but as of 2023, certified financial planners (the highest professional standard for advisors) who were Black accounted for only 1.9% of all CFP professionals.
Many of these CFPs — and other Black financial professionals — want to share their financial knowledge to address the racial wealth gap and to help more consumers of color save, plan, and invest. According to the St. Louis Federal Reserve, Black families had 25 cents for every $1 of white families in the second quarter of 2022.
We talked to some CFPs and other Black financial pros about tips on money management in the face of a potential recession, long-term job security, and investing strategies for the year ahead.
Responses have been edited for length and clarity. Learn more about each financial pro below following the questions.
What are some smart money moves to consider ahead of a possible recession?
Mandi Woodruff-Santos (co-host of Brown Ambition and founder of the MandiMoney Makers): “Focus on what you can control — not what you can’t. You can’t control the economy or whether your company decides to cut jobs, which might feel overwhelming. Instead, focus on the things that will help you bounce back if or when the worst happens.”
“Make sure you’re shoring up your emergency fund. It’s rough out there in some industries, with tens of thousands of tech workers kicked to the curb in just the first few weeks of the year already. That means you could face stiff competition and a longer wait before you nab your next opportunity.”
Michelle Singletary (columnist, “The Color of Money”): “A recession can lead to job losses. You need to stockpile cash to carry you through a job loss. If you don’t fear a layoff, now is the time to finally get rid of consumer debt — all of it. There were folks, who, during the start of the pandemic, never thought their jobs would be in jeopardy, but then they lost their livelihood. If you aren’t servicing a lot of debt, you can weather a financial storm a little better.”
Rianka R. Dorsainvil (co-CEO of 2050 Wealth Partners): “With so much uncertainty around the economy, possible recession, and continued layoffs, right now, cash is queen. The positive side of the Federal Reserve raising interest rates is savers are being rewarded for saving. The average high-yield savings account is hovering above 3.0%.”
For those worried about layoffs, what is your advice about starting a side hustle and ensuring long-term job security?
Melissa Jean-Baptiste (co-founder of Millennial in Debt): “Create a digital brag box. This will help you quantify all the hard work you have been acknowledged for and will serve as a unique differentiator should you see yourself in the job market seeking a new role.”
“For my side hustlers, try to ensure that the new side hustle you are taking on has low or minimal overhead, so you don’t have to spend too much before
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“When it comes to ensuring long-term job security, focusing on industries that are considered “recession-proof” may be beneficial. While no job is entirely recession-proof, certain industries tend to maintain consistent productivity and profitability during challenging economic times. These industries are often essential to society regardless of economic conditions. For instance, fields like education, security, and healthcare are examples of such recession-resistant industries.”
Chelsea Ransom-Cooper
Chelsea Ransom-Cooper (managing partner and director of financial planning at Zenith Wealth Partners): “To remain competitive in the job market, seeking additional skill development through certifications can be valuable. Even in the event of a layoff, this may expedite the process of finding new job opportunities.”
Chris Browning
Chris Browning (creator and host of “Popcorn Finance”): “While side hustles can be beneficial—my podcast started as a side project—they may not easily replace your primary income. Therefore, maximizing your efforts in your main job is crucial.
“Consistently enhancing and expanding your resume has been instrumental in my career advancement and job search. Engaging with local industry organizations, pursuing available training and workshops, and networking with professionals in similar roles or other organizations have been valuable. Active involvement on platforms like LinkedIn is also beneficial for increasing exposure to potential opportunities.”
What’s your investment strategy for 2023?
Kevin L. Matthews II (bestselling author and founder of BuildingBread): “My investment strategy for 2023 remains consistent with previous years, focusing on long-term investments, predominantly in index funds. Considering my risk tolerance and age, approximately 85% of my investments are in stocks, with the remaining 15% in cash and bonds.”
Kevin L. Matthews II
Ayesha Selden (certified financial planner, author and investor): “When investing, it’s important to consider both short and long-term goals. For short-term goals like purchasing a home, avoiding volatile assets such as stocks or crypto is recommended. In contrast, individuals planning for long-term milestones such as retirement or children’s college funds should seek promising opportunities in the market. Personally, I prefer acquiring distressed assets and exploring companies that experienced significant stock depreciation last year.”
Ayesha Selden
Dominique Broadway (founder of financial education company Finances Demystified): “I plan to allocate funds to purchase stocks in my favorite companies each month, considering that many are currently trading at their lowest prices. Additionally, I intend to continue trading several times a week and expand my real estate holdings this year.”
Dominique Broadway
“When navigating competing financial goals, evaluating the short and long-term benefits of each goal is crucial in determining priorities.”
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Ransom-Cooper: “My investment strategy is to keep buying and prioritize investing in tax-advantaged accounts like a Roth IRA. When there is market volatility, it’s helpful to focus on your time horizon. The amount of time that you are invested in the market is far more important than trying to time the market.”
