To lay the foundation for the new Black Family Thriving Initiative, a team of Urban researchers conducted a pilot study with the goal of deepening our understanding of the experiences of the Black American middle class with wealth building. The study seeks to understand the current economic and social circumstances, aspirations, and needs of Black middle-class families; Black families’ experiences with wealth building and the strategies they employ to secure financial security; how the Black middle class conceptualizes the ideal state, financially, where Black families thrive.

In this report, we trace the history and foundation of the US class structure; outline the role of income and wealth in defining middle classness; discuss how wealth influences whether Black Americans are able to achieve middle-class standing; and describe why it is imperative for researchers, policymakers, and other decisionmakers to design interventions and policy solutions to support wealth building for the Black middle class.

Why This Matters

While there is no consistent definition for middle class in the US, typically income and education, and in some instances, occupational status define “middle class” in the United States. While these are important components of middle classness, wealth contributes to socioeconomic security, personal investments, business development, and the ability for individuals and families to pass down wealth intergenerationally. In the absence of wealth, it can be more difficult for Black families to cover financial emergencies, including unexpected health, home ownership, or education costs.

What We Found

We learned how Black Americans define being middle class from their own perspectives and experiences. The following experiences and accomplishments represent the many ways that Black Americans conceptualize what it means to be middle class:

• Income and wealth: Both are markers of middle-class status as well as having some level of financial security.
• Financial self-reliance: Being middle class means not needing financial assistance or subsidies from the government, other institutions, or other people.
• College-level or advanced degree: Higher education is viewed as a marker of middle-class status and indicates that distinction between white- and blue-collar careers informs their views about the middle class.
• Neighborhood characteristics: Living in communities with access to quality schools are components of the conceptualizations and definitions of middle class.
• Interaction between race and class: Participants indicate that their awareness of and discussion of historical and present-day barriers that still shape Black middle-class families’ experiences.
• Family and community networks: Family and other supports are protective factors, including how parents and other family members often ensure that children do not ‘feel’ the realities of their economic situation.
• “Weathering economic storms”: The ability to deal with economic ups and downs is a primary component of defining wealth and financial security.
• Homeownership: Owning a home is the primary mechanism for achieving wealth and sustaining intergenerational transfers of wealth (passing down income, property, or other financial assets from one generation to another).
• Transfer of their homes as assets to the next generation: Passing down assets via trusts or other forms of estate planning is important for building wealth. Participants also discussed the importance of equipping their children with the necessary financial and legal knowledge to maintain financial security in the future.

How We Did It

This analysis draws from one-on-one interviews with Black middle class people in three metropolitan areas —Baltimore, Maryland, Charlotte, North Carolina, and Chicago, Illinois. Through these interviews, we examined the current economic and social circumstances, aspirations, and needs of the Black middle-class. Specifically, we asked questions about their experiences with wealth building, intergenerational transfers of wealth, aspirations to accrue wealth, the strategies they employ to secure financial security and stability, and the opportunities and barriers they face to do so.