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As accumulating wealth is a vital component of financial well-being, this paper aims to gain a better understanding of why African Americans do not accumulate wealth at the same rate as other racial groups. Researchers utilize data from the 2019 Survey of Consumer Finances (SCF) to estimate the parameters of logistic regression specifications to examine the factors that determine wealth accumulation for African Americans. Researchers found that African Americans were less likely to have low wealth if they owned their own homes and more likely to have low wealth if they did not save. Saving and homeownership had more of an impact on wealth accumulation for African Americans than for White Americans. Furthermore, African Americans who did not invest in the stock market were more likely to have low wealth, as investing also had more of an effect on wealth accumulation for White Americans than for African Americans.

The wealth of African Americans has lagged behind that of the general US population. The key to understanding this may lie in African American women's money management abilities and feelings relating to money because they are often the household's money manager. This study answers the question, "If African American women had greater confidence in their ability to manage money, or had a positive attitude towards money, would they invest in the stock market more often and ultimately increase their net worth in this way?" Researchers studied a cross-section of African American women, using three logistic regression models and found that African American women who were sure of their ability to manage their finances and felt in control of their money were more likely to be investors. A higher number of younger African American women were investors, compared to older African American women. In addition, younger African American women had greater confidence in their money management ability than their older counterparts.