THE BLOG
06/12/2013 01:31 pm ET Updated Aug 12, 2013

Stock Trading and Investing for Black Americans

Money management, saving and investing are topics that are not covered in high school and general college curriculum. Yet, as adults, money is certainly a necessity. Learning how to invest will make a major difference in every aspect of life from where one chooses to live and raise kids to when to retire. Now, more than ever, black Americans need to be financially educated.

Black Americans have advanced significantly in the professions of science, law and government. President Barack Obama's 2013 re-election to a second term exemplifies that. However, evidence suggests that black Americans are still lagging in the arena of financial education.

Since 1998, Ariel Mutual Funds has partnered with Black Investor Survey to analyze the investment patterns of the black American community. They have found black Americans save and invest less than white Americans of similar income levels. In 2013, the median amount black households report saving to invest on a monthly basis is $189, compared to $367 among white households.

Over the past fifty years, trading stocks has been perceived as a game only the rich can play. However, the internet and technology have changed the landscape for the small investor. In 2013 there's greater access to free online stock research than ever in history and online brokerage houses, like E-trade, have made buying and selling stocks online easy.

These developments represent the removal of two key barriers for an individual investor to enter the stock market and manage their own money. There is no reason black Americans can't participate in building wealth through online investing. And as black Americans take greater advantage of technology and become financially educated investors, they will be better equipped to give back to their families, churches and communities.

Today the only block to financial success is our thinking. That's because wealth is an internal game first. Our beliefs about money are very powerful as they diminish or increase our success. The amount of wealth we create is directly correlated to what we believe is possible.

Content concerning financial matters, trading or investments is for informational purposes only and should not be relied upon in making financial, trading or investment decisions.