Mini-Unit

7.1 Racial Discrimination and Financial Wealth

Student Activity Packet
MINI-UNIT: RACIAL DISCRIMINATION IN FINANCE

Name:

Students will be able to:

● Define what wealth means and explain why net worth is a useful metric to evaluate someone’s financial
wealth
● Analyze how key historical and ongoing financial practices have led to modern racial inequities in the
United States
● Consider the role of reparations to redress the harms of slavery and violence against Black Americans
and other historically excluded communities

NOTE: Vocabulary for this unit can be found in the NGPF Personal Finance Dictionary

INTRO

PROMPT:
Use the space below to answer the prompt.

1. Take a look at the graphic. Which of the four scenarios do you think is MOST fair for
both people involved? Explain.

2. What are some ways in which the definition for Justice is different from the definitions
for Equality and Equity?

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 3. How might differences in access to certain opportunities (such as education, career,
etc.) impact someone’s ability to build financial wealth over the course of their lives?

LEARN IT

VIDEO: Explaining Wealth

INFOGRAPHIC: What’s My Net Worth?
While financial wealth isn’t the only component that influences someone’s life trajectory, it
certainly can play a key role. But, what is wealth? How do we define it? Watch this video and read
through the infographic at the top of the article to find out. Then, answer the questions.

1. In your own words, define the terms assets and liabilities.

2. Why is net worth a better indication of someone’s financial wealth than simply adding
up the value of all of their assets?

3. What do you think it means to have a negative net worth?

INFOGRAPHIC: The Racial Wealth Gap in America: Asset Types Held by Race
Financial wealth is not evenly distributed in the United States, especially when compared by race.
This is known as the racial wealth gap. Learn more about the racial wealth gap by analyzing the
data in this infographic. Then, answer the questions.

1. How does the median net worth of a white household compare to that of a Black
household and a Hispanic household?

2. The infographic states that “white households are the most likely to hold assets of any
type.” What do you think is the significance of this?

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VIDEO: Land: Giving Rise to the Famous Phrase 40 Acres & a Mule
To better understand the racial wealth gap in the United States, we need to look back through
American history. During almost 250 years of slavery, white Americans accumulated wealth from
the labor of enslaved people. After the Civil War, Black ministers and William Sherman introduced
"40 acres and a mule" as an attempt at reparations so newly freed Black Americans could build
wealth. However, this promise was broken. Watch this video to learn more and answer the
questions.

1. Describe the goal of the “40 Acres & a Mule” policy.

2. Why would “40 Acres & a Mule” have been significant?

3. Why did President Johnson reverse the 40 Acres & a Mule policy?

4. What lasting impact did the reversal of 40 Acres & a Mule have on Black Americans in
the United States?

ARTICLE: How the GI Bill's Promise Was Denied to a Million Black WWII Veterans
ARTICLE: Sold, Damaged, Stolen, Gone: Japanese American Property Loss During WWII
ARTICLE: Filipino Americans Fought With US in WWII, Then Had to Fight for Veterans'
Benefits
Racial discrimination continued to impact various communities in the United States for years to
come. During and after WWII, multiple racial groups faced unjust and discriminatory practices
and policies. To learn more, your teacher will assign you one of the resources listed to explore.
Answer the independent questions as you are going through the resource. You will then pair up
with two of your classmates who each explored the other resources.

Independent Questions:
1. Provide a summary of the various discriminatory practices and policies discussed in
your resource, who they impacted, and how in the table.

2. What aspects of life did these discriminatory practices impact? (Example: finances,
education, etc.)

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In Groups:
3. Take turns sharing the answers to the questions you answered above with your
classmates in your groups.

4. In what ways did WWII-era policies deliver prosperity to white veterans and their
families while preventing the same for Americans and veterans of color?

5. Did you know about these discriminatory practices and the communities they affected
prior to reviewing these resources? What was something new you learned?

VIDEO: How Housing Redlining Contributed to the Racial Wealth Gap and Segregation
Another way Black Americans and other communities of color were denied access to financial
wealth was through the government’s use of redlining practices in the 1930s. Redlining directly
impacted (and continues to impact) where and how these communities lived in the United
States, which then affected other areas of their lives. Watch this video to learn about the basics of
redlining and answer the questions.

1. How might owning a home help someone build financial wealth?

2. What is the practice of redlining?

3. Between 1932 and 1946, the U.S. government backed $120 billion dollars in low cost
home loans. What percentage went to white Americans?

4. How did redlining contribute to the racial wealth gap and segregation?

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EDPUZZLE: Racist Banking Policies Keep Black Americans from Prospering
Black Americans not only faced racial discrimination in housing practices, but also through
banking policies. Watch this video and follow your teacher's directions to answer the questions
either in your student activity packet or within the EdPuzzle itself.

NOTE: EdPuzzle videos shuffle answer choices and do not always match the order provided in
the lesson here.

1. On average, for every $100 of wealth that White families have, approximately how
much do Black families have?
a. $5
b. $10
c. $50
d. $75

2. What role did the Freedman's bank play for Black Americans?
a. The bank refused to serve Black Americans who lived outside of a specific mile
radius.
b. The bank only offered accounts that earned 0% interest to Black Americans.
c. The bank required extensive background checks for Black Americans before they
could open accounts.
d. The bank refused to extend loans to Black Americans and ended up having to close
due to poor investments.

3. While "Black Capitalism" encouraged supporting Black entrepreneurs and Black-

owned banks, why was it a poor decision on the country's part? (Select all that apply)
a. Black Capitalism asked corporations to voluntarily support Black-owned banks.
b. Black Capitalism didn't address the underlying systemic problems that caused the
disparities between white and Black Americans.
c. Black Capitalism did not take Civil Rights Leaders' recommended solutions into
account.
d. Black capitalism was a band-aid solution to the racial disparities that were prevalent
in American society.

4. Subprime loans (now marketed as non-prime loans) are a form of predatory lending,
because they... (select all that apply)
a. charge higher interest rates to compensate for higher risk of default
b. are designed to make payments difficult or impossible
c. are purposely marketed towards Black Americans and minorities in the U.S.
d. take a person's economic status into account, not their race

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ARTICLE: What are Reparations?
As you’ve seen, the United States has used violence and discriminatory policies to marginalize
generations of Black Americans and other historically excluded communities. In response to this
generational impact, community leaders and activists have called for racial justice, including
reparations. Read this article to learn more about reparations. Then, answer the questions.

1. In your own words, describe what reparations are.

2. What work around reparations has already been done?

3. Most calls for reparations ____________ (have/have not) been realized.

4. What is one way the article recommends we can make reparations a part of our
personal lives?

DO IT

ACTIVITY: RESEARCH: Reparation Efforts in the United States

Let’s take a closer look at what efforts have been towards reparations in the U.S. Follow the
directions on the worksheet to complete this activity.

ACTIVITY: CREATE: A Timeline of Racial Discrimination in Finance

Throughout this lesson, you’ve explored a wide range of historical events and policies. We will
continue to do so throughout the rest of the mini-unit. Use this timeline to keep track of these
events and policies and refer back to the timeline as necessary and when prompted in lessons.

1. Using your knowledge from the previous resources, add a description for the following
items in your timeline worksheet.
a. 40 Acres & a Mule - Jan 16, 1865
b. GI bill - 1944
c. Executive Order 9066 - February 19, 1942
d. Rescission Act of 1946 - February 18, 1946
e. HR 40 bill is passed - 2019

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 EXIT TICKET

Follow your teacher’s directions to complete the Exit Ticket.

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