Mary Baldwin partnership aimed at helping close wealth gap for young people of color
STAUNTON — Mary Baldwin University recently announced a partnership with national financial literacy nonprofit Goalsetter Foundation and Citizens Bank on a new program designed to help close wealth gaps among young people of color. The partnership with MBU and Citizens marks the foundation's first foray into higher education, according to a press release.
The program will give 500 Mary Baldwin students one share of Citizens stock each in addition to access to Goalsetter’s platform and financial education content.
“I can’t tell you how excited we are to be able to bring this opportunity to our students, and to continue to play a role in this extremely important work,” said MBU Vice President of Student Engagement Ernest Jeffries, who spent the past year working on the partnership. “This program aligns perfectly with our mission to equip students with the skills they need to lead lives filled with personal and professional success.”
Yvette Vargas, head of development at Citizens said the foundation picked Mary Baldwin because the university’s mission mirrors that of their organization.
The release said that Goalsetter is a goal-based savings and smart spending educational platform that provides the foundational tools of building wealth to families. It puts students on the path to financial freedom by teaching them to be savers, investors and owners over consumers.
“Partnering with Mary Baldwin University and Citizens on this effort was a no-brainer for us,” said Goalsetter founder and CEO Tanya Van Court. “With the school loan crisis and increasing wealth gap that is crippling American families, particularly in communities of color, it was clear to us that it was important to bring these students into the fold now so that they can be fiscally healthier, wealthier and wiser as they move on into adulthood.”
U.S. News & World Report ranks MBU among the nation’s top colleges and universities — and number one in the Commonwealth of Virginia — for boosting social mobility, the release said. According to the university, about half of its students come from families who earn less than $60,000 a year, a quarter are first-generation college goers, and more than 50 percent identify as people of color.
The release said that participating students claim their share of Citizens stock by attending info sessions and downloading the Goalsetter mobile app. The app helps them set up free savings and investment accounts, establish savings goals, and monitor their stock’s performance. Weekly learning modules, tutorials, and follow-up quizzes build literacy around financial terms, investment plans, and more.
MBU advisors and professors plan to reinforce in-app learning through personal check-ins and supplemental educational programming, the university said.
Jeffries points to national statistics that show such students typically suffer lifelong economic disadvantages compared to their white counterparts.
Citing an estimate by the Federal Reserve, the release said that the median and mean wealth of Black families in the United States is about 15% of that of white families, with Latino families at about 20%. The release also said that predictions show African Americans could have a negative net worth by as soon as 2043, and Latinos by 2063.
“This is the wealth gap that Mary Baldwin is committed to helping close — and this partnership gives us a very strong tool in that fight,” said Jeffries. “By the time these students graduate, they’ll be able to talk about things like stocks and bonds, asset allocation and diversification with confidence, as if these were simple everyday topics.”
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— Patrick Hite is The News Leader's education reporter. Story ideas and tips always welcome. Contact Patrick (he/him/his) at phite@newsleader.com and follow him on Twitter @Patrick_Hite. Subscribe to us at newsleader.com.
This article originally appeared on Staunton News Leader: Mary Baldwin partnership aimed at helping close wealth gap for people of color
