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A CELEBRATION OF HISPANIC HERITAGE MONTH
Juneteenth Celebration and 5 Steps to Building of Generational Wealth
The Hispanic Heritage Month celebration began as a weeklong celebration under the Lyndon B. Johnson Administration. It was later expanded under Ronald Reagan in 1968 to cover a month-long period that started on September 15 and ended on October 15 each year.
Hispanic Heritage Month offers a unique chance to delve into the profound and enduring influences of Latinos in the United States, as the Hispanic legacy in America dates back many centuries. The Hispanic community plays an essential role in shaping our nation, as the culture is diverse and includes those from or who have descendants from Spanish-speaking countries. These countries/regions include Spain, Mexico, the Caribbean, and Central and South America. The celebration coincides with the independence celebrations of these regions.
The classification of ethnic groups in the United States traces its origins back to 1788 with the inception of the melting pot theory. This concept sought to illustrate how diverse cultures amalgamated in the newly formed nation. Given the vast array of cultural backgrounds within Spanish-speaking countries, the endeavor to define this multifaceted culture in America has sparked considerable debate. Nonetheless, driven by the dedicated efforts of activists, the Census Bureau responded by introducing a new demographic identity: “The Hispanic.” Today, the Hispanic community comprises a significant portion, representing over 19% of the U.S. population. Notably, it is the most rapidly growing segment within the United States, a striking evolution from its modest 3.5% representation in the 1960s. Ultimately, it’s crucial to remember that as diverse as our origins may be when it’s all said and done, we are all Americans bringing something to the table.
This year’s Hispanic Heritage celebration theme is “Prosperity, Power and Progress”. Although the current economic climate has not been conducive to most, the Hispanic community accounted for 6.5% or over 375,000 of all U.S. businesses in 2020. Most Hispanic-owned companies are in the construction industry, dominating the minority-owned construction firms at 63%. Other sectors where the Latino community has a significant presence are within the Transportation and Waste Management industries, where over 50% of the businesses are minority-owned.
Frequently, when reflecting upon the profound impact of Hispanic culture on American society, our thoughts tend to gravitate toward food, sports, and music. Iconic dishes like guacamole and tacos have found their way into our culinary repertoire, and high-energy fitness activities like Zumba have become an integral part of our daily lives. However, the influence of Hispanic culture extends far beyond these domains. Latinos have made significant contributions to the business world, leaving an indelible mark on the automotive, medical, technology, and various other industries, thereby enriching and diversifying the American cultural landscape in multifaceted ways.
Let’s dive into three Hispanic companies and individuals that have contributed to the American culture:
Hispanic American, Ernest Garcia III co-founded an innovative online platform called Carvana. Carvana was named on the 2021 Fortune 500 list as one of the youngest companies to be added. This brand has revolutionized vehicles being purchased and sold online.
Then, in the medical industry, Alejandro Zaffaroni was involved in developing the birth control pill, the nicotine patch, corticosteroids, the DNA microarray, and more. Throughout his career, he invented and patented over 20 transdermal delivery systems for controlled medications approved by the FDA. Many patents he obtained were sold to Johnson & Johnson, but he continued his biotech business under Alexza Pharmaceuticals, headquartered in California, until he passed away in 2014.
Finally, as we enjoy our favorite television shows, we owe a debt of gratitude to Guillermo Gonzalez Camarena, the inventor and patent holder of the Chromoscopic adapter. This revolutionary device allowed black and white cameras to capture color, ushering in a new era of television. Camarena’s invention enriched the entertainment world and found utility in NASA’s endeavors, expanding its impact beyond television screens. His pioneering work transformed the viewing experience and facilitated advancements in scientific exploration and visual communication, leaving an indelible mark on technology and broadcasting.
There is much to celebrate this year. The Hispanic community has significantly impacted American culture. This year’s theme is appropriate. It begins with prosperity and becoming a business owner. Business ownership is the key to building strong communities. So, whether you’re contemplating your first or next business venture, join the More Than Three Fifth movement!
The Black tax is a blessing and a curse at the same time. Our desire to help our loved ones through rough patches is often the reason why some Black adults have difficulty saving money and building wealth. Below we offer 5 suggestions on how one can begin building generational wealth:
1. Save a little first.
Although your first instinct may be to assist a family member in need, you must always pay yourself first through savings or investments. In the event you lose some or part of your income, you should always have something to fall back on.
2. Understand your finances and share financial literacy with your circle.
Ev
ery situation is different, but the solution begins with understanding your finances and planning.The support you provide to others should be stabilizing as opposed to enabling.It involves hard conversations about the long game. The long game should be a resolution of independence or close to it. Go further than just loaning money. Having conversations with family members about managing their finances can go a long way towards making sure your inner circle is on the path to generating wealth.
3. Understand who your politicians are.
Building generational wealth also involves understanding how changes in public policies can impact our lives. Tax codes, student loan debt and the judicial system have negatively impacted black households’ ability to build wealth. For instance, home ownership accounts for 50-75% of household wealth in America. Although volatile at times, its value appreciates 3% –5% on average per year. It can be a source of forced savings. The homeownership rate for Blacks is about 44% compared to 73% for Whites. We need to support politicians that create policies that provide incentives and opportunities for increased Black homeownership.
4. Consider public service loan forgiveness programs.
One way to manage student debt is to find a job that allows you to access programs that forgive debt. The Public Service Loan Forgiveness (PSLF) programs provides forgiveness to public servants that serve in roles such teachers, nurses, firefighters, or public service employees for non-profits (501-C3). After 10 years qualifying student loan debt can be forgiven.
5. Encourage Entrepreneurship.
Entrepreneurship creates the ability to lift oneself out of poverty and begin building generational wealth. Being self-employed can be both rewarding and challenging at the same time. Developing a strong business plan helps to attract capital. Financial institutions are rated on how well they meet the credit needs of the communities they serve and are required by law to have the facts, data and analytics that support the rating, available to the public upon request. As an entrepreneur, you can inquire with financial institutions on ways your business can assist in meeting their goals to reach the community and small businesses. By supporting small businesses, we build stronger communities, so make sure to join More Than Three Fifth community to help you grow your business.
In these difficult economic times, many of us may wonder whether the black tax is a blessing or a burden. However, at More Than Three Fifth, we feel that it is a window of opportunity to help our community begin building generational wealth. This window may seem somewhat cloudy at times but sometimes adversity breed’s progress.
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