- Financial literacy coach Vivian Tu says one of the ways white allies can help close the racial wealth gap is by being completely transparent about their money.
- You say people of color shouldn’t be afraid to ask their white friends about their salaries and mortgage rates.
- “If they are really your friend, they would openly share this information — and more,” Tu says.
- Read more stories from Personal Finance Insider.
“I would like to think, in 2022, that we have moved beyond prejudice against people of color, LGBTQ people, but that is not the case,” says Vivian Tu, a 27-year-old millionaire and ex-Wall Streeter.
While working as a trader on Wall Street, Tu was one of the only women of color on her team, and she gained insight into the common pitfalls and barriers that prevent people of color from building wealth.
On her TikTok, she recently informed her one million followers about how racism affects a black couple’s home valuation, a process by which a professional gives a homeowner an estimate of their home’s value. before putting it on the market.
During their first assessment, Paul Austin and Tenisha Tate – Austin They were told their home was worth $989,000 – far less than other homes in their neighborhood in Marin City. Once approved for a second appraisal, the Austins took personal photos of their family, replaced them with photos of a white family, and asked a white friend to pose as the owner. The first appraisal with family photos of the Tates was valued at $455,000 less than the second appraisal with white family photos.
Tu encouraged his white viewers, “Talk to your friends of color about financial topics like mortgage rates, salaries and house prices so they know what they should ask for.” She also told Insider, “If you’re in a privileged position, you can be a great ally to your friends of color by being transparent about money.”
Talking openly about money is awkward enough, and factoring race into the conversation can be even harder. If you don’t feel comfortable asking someone face-to-face, try prefacing the conversation with a text or email, or schedule a
call to discuss finances.
Here are two simple questions people of color shouldn’t be afraid to ask their white friends.
1. What is your mortgage rate?
One of the easiest ways for white people to show their alliance with people of color is to be completely transparent at every step of the mortgage process. “A lot of black couples, a lot of interracial couples, a lot of LGBTQ+ couples don’t get fair treatment in the bank,” Tu explains.
Here are some additional questions people of color can ask about the mortgage process, according to Tu:
2. How much money do you earn?
You say people of color don’t get “a good dose in the office, either.” She adds “If your white friends really are your friends, they will help you and share their wages with you. Tu argues that white people should tell their friends of color exactly how they negotiated their pay and check that they get the same benefits package.
Here are some additional questions people of color can ask their friends about their salary:
- Did you get a raise this year? How much did they give you?
- How much was your bonus this year?
- Can you give me advice on how to negotiate a higher salary, commission, hourly rate or bonus?
- (If you are moving to a new city) Did they offer you a moving bonus? If so, how much were you offered?