A blog post written by our CEO Timi Okuwa for Rooted Finance on financial literacy for Black women.
Mainstream financial literacy often ignores the cultural and systemic hurdles faced by young Black women in the UK. Financial education is often designed as if everyone starts from the same position, but this is not the reality for many women navigating structural inequality, discrimination, financial exclusion and coercion.
If financial literacy initiatives are to be effective, they must recognise the gendered and cultural barriers that shape the financial experiences of young Black women. Without this, programmes risk overlooking the very groups that need them most.
At BEO, our mission is to dismantle systemic racism and the barriers that underpin discrimination in the UK. We know there are many factors that prevent Black people, particularly women, from achieving their full financial potential.
BEO and the Fairness Foundation published A Tale of Two City Dwellers this month, drawing on qualitative research by the London School of Economics and The Equality Trust. The research identified a range of structural challenges including low pay, high living costs, barriers to career progression, limited financial education, immigration policy constraints, restricted access to banking and credit, unequal access to training opportunities, and obstacles to home ownership.
There is also longstanding mistrust within Black communities towards traditional banking institutions. Whether it is applying for loans, mortgages or credit cards, Black communities can face disproportionate barriers when accessing these financial products. This can further distance many individuals from formal financial institutions and reinforce the sense that these systems are not designed with them in mind.
At the same time, many Black communities have long relied on their own trusted financial practices. Community savings clubs such as Pardner, Susu and Ajo are informal rotating savings schemes where members contribute funds and receive a payout in turn, often referred to as “throwing hand”. These systems are built on community trust, accountability and collective support.
These practices reflect long traditions of collective financial resilience within Black communities and demonstrate strong financial discipline. However, they often exist outside of formal financial systems and are rarely recognised by mainstream financial institutions. As a result, many young Black women may have experience managing money and saving collectively, yet still remain excluded from the benefits of formal financial services, such as credit building, investment opportunities or wealth accumulation tools.
Alongside this, the economic pressures faced by many young Black women are significant. The burden of poverty and low pay often affects women more harshly than men, and the impact can be even greater for Black women. For some Black women, financial inequality is compounded by economic abuse, where access to money, credit or financial decision making is controlled or restricted.
In 2023, 37% of young Black women reported being unable to afford food or essential supplies within the previous twelve months. This compares with 32% of young women overall and 21% of young men. The figures also show that 17% of young Black women had claimed benefits at some point, compared to 11% of all young women.
Even when young Black women are in work, discrimination can affect both access to employment and progression in the workplace. Research shows that almost two in five (39%) young Black women have experienced discrimination because of their ethnicity. These experiences limit opportunities to build financial security and wealth over time.
For these reasons, financial literacy programmes must go beyond generic advice about budgeting or saving. Financial education must be culturally relevant, community-led and designed to address the structural realities that shape financial access and opportunity.
Economic empowerment is one of the pillars of BEO’s work because financial knowledge and access are key to closing the inequality gap. Through our partnership with Sky, we have delivered the F100 Growth Fund, which supports Black entrepreneurs to develop their business skills and grow their ventures.
The programme provides mentorship, networking opportunities and a £15,000 award to support entrepreneurs to scale their businesses. Over the past five years the programme has built a strong network of F100 alumni, including many Black women who are now thriving as entrepreneurs and creating economic opportunities within their communities.
Confidence in financial decision-making is also a key challenge. Research by HSBC found that two in three women (69%) do not feel confident about investing their money. Building confidence and knowledge around investing can be financially empowering and open up opportunities for long-term wealth creation.
These challenges are real – they reflect the lived experiences of many people navigating financial systems that were not designed with them in mind. I arrived in the UK with very limited money and have spent more than 30 years building financial stability while navigating many of the financial barriers that continue to affect Black communities today. Those experiences reinforce why financial knowledge, access and support at an early stage can make a profound difference.
Our programme My Credit. My Power., supported by the Aviva Foundation, aims to strengthen financial resilience and everyday financial protection for young Black women aged 18 to 30. Through community-led workshops and one-to-one guidance, we are working with participants to map the barriers they face and co-design practical solutions with local partners.
BEO’s mission is to drive systemic change, and the insights from this programme will inform policy and industry recommendations, helping to create a tested model that can be scaled through BEO’s community network. While the programme will run for three years, the aim is to build sustainable knowledge, trusted relationships and mentorship support for young Black women well beyond the life of the project.
Building financial assets early is critical to long-term financial security. Research shows that women with assets of more than £1,000 at age 23 are significantly more likely to report excellent health later in life. Asset ownership is also linked to higher levels of civic participation, including voting, volunteering and wider community engagement.
The principle of “Give to Gain” is already reflected in many Black communities through traditions of collective saving, mentorship and mutual support. Financial literacy must reflect the lived experiences of the communities it aims to serve. By recognising culturally relevant financial practices, addressing systemic barriers and building trust through community-led approaches, we will equip and strengthen young Black women with the tools they need to build long-term financial security and begin closing the wealth gap.
