Hampton University this month launched a student investment program in partnership with Stackwell, a digital investment platform that aims to close the racial wealth gap.
As part of the program, the university offers each new student $25 to open an investment account at Stackwell. The university puts $25,000 into the program annually. This year, 967 new students enrolled.
Additionally, the program provides students and their families with a free financial literacy program through the Society for Financial Education and Professional Development. This program provides students, parents, and faculty with access to online financial literacy courses. The Financial Literacy Program is considered part of the student’s core her curriculum and participants receive a certificate upon completion.
The goal is to empower the financial futures of students and their families and encourage them to build wealth throughout their lives.
“This new program is an important part of our commitment to providing the best student experience in America,” said Hampton University President Darrell K. Williams in a release. “Hampton University is committed to investing in the advancement of our students as future leaders and building generational wealth on a national scale.”
According to university officials, it is the first program in the country to offer financial education and a funded investment account for an entire class of students. Stackwell will also engage with students on campus to encourage the development of long-term savings and investment behavior, according to the release.
Stackwell founder and CEO Trevor Rozier-Byrd said: release. “We share a vision and mission to invest in our communities, and together we have created a program that will have a profound impact on the entire Black community. This program will set new standards in financial wellness and wealth creation. We look forward to expanding our reach to benefit thousands of students in the coming years.”
According to the National Bureau of Economic Research, a university announcement found that the racial wealth gap is the largest of the economic gaps between black and white Americans.
“Federal Reserve data show that the racial wealth gap in the black community is widening from generation to generation. White households are, on average, eight times as wealthy as black households. and that number has increased 17-fold among millennials and Gen Z,” the press release states. “This new program will focus on the youngest generation of Hampton students who are disproportionately affected by wealth inequality and who have the greatest opportunity to eliminate it by starting to build wealth at an early age. I guess.”
Nour Habib, nour.habib@virginiamedia.com