For more than a decade, the Northside Achievement Zone (NAZ) has been dedicated to its mission to end multi-generational poverty and build a culture of achievement in North Minneapolis. To further advance this commitment, NAZ is pleased to announce the launch of Wealth Builds Minneapolis—a groundbreaking new initiative aimed at tackling the root causes of wealth inequality, closing the wealth gap, and creating generational wealth for Northside children, youth, and their families.
Wealth gaps between Black and white communities are historical, persistent, and increase with age. The average wealth gap between Blacks and whites ages 18-34 is $24.8K, rising to $261.2K by the time Black adults reach age 55 if unaddressed. (1)
Wealth Builds aims to close this gap early, creating a pathway to social and economic mobility by coupling NAZ’s holistic set of prenatal-to-profession services with financial education and critical capital at every developmental stage of a young person’s life.
NAZ families experience some of the most significant challenges nationwide in education, unemployment, earnings, housing, and health outcomes. The majority of NAZ families (85%) are living at or under 200% of federal poverty guidelines (less than $60,000 annually for a family of four), including 65% that make less than $30,000 annually.
What is Wealth Builds?
Developed by the Harlem Children’s Zone (HCZ) and tailored for North Minneapolis, Wealth Builds Minneapolis is a bold, three-year pilot. NAZ is one of two organizations to launch the program beyond Central Harlem, and HCZ has plans to expand to up to eight additional communities nationwide over the next six years. The initiative will continue to evolve, guided by the voices of scholars, and is intended to become a permanent part of NAZ programming.
Building on NAZ’s proven, place-based, prenatal-to-profession pipeline of supports, Wealth Builds Minneapolis guides scholars on a path to develop and accumulate the human, social, and financial capital they will need to thrive in their adult lives. Over the next two and a half years, NAZ will progressively scale efforts to reach 1,000 pre-K-8th grade scholars and their families with this comprehensive wealth intervention that includes six components:
- College Savings Accounts: seed college savings accounts (CSAs) with $500 for babies and youth to increase the likelihood of college graduation, promote enrollment in post-secondary training and certification pathways, and increase savings.
- Financial Literacy: age-appropriate courses and after-school programs developed by members of the Northside community with expertise in the financial sector to increase financial management skills.
- Youth Opportunity Funds: an investment account for scholars with withdrawals conditionally approved in adulthood for specific wealth-building activities (i.e. funding an advanced degree, buying a house, investing in a business).
- Family Empowerment: Family achievement coaching, parent and youth education (NAZ Family Academy), leadership, home visiting, and investments to parents and caregivers that empower them to establish critical foundations for family financial stability.
- Entrepreneurship & Employment: Support and skill-building resources (including mentorship) for young entrepreneurs and workers to increase income and wealth-building opportunities.
- Financial Inclusion: Tools and resources to increase financial management skills and expand access to financial services in the community, including access to financial coaching through trusted partner organizations.
Wealth Builds Impact
Wealth Builds Minneapolis will realize a lasting and sustainable impact by positioning scholars to maximize their earnings and assets during critical wealth-building ages of 25-55, equipping them with the financial foundation to start a new cycle of prosperity for themselves and their families.
Each component of Wealth Builds directly addresses the building blocks of wealth: increasing income as a result of higher educational attainment, reducing debt, and increasing savings through career advancement and home ownership, resulting in greater accumulation of assets during critical earning years. By addressing these issues early in a scholar’s life, Wealth Builds will position them to gain an average of $230K+ in increased wealth throughout their lifetime.
The program's comprehensive approach will ultimately position scholars to achieve the momentum necessary to escape the gravitational pull of poverty.
Wealth Builds Leadership
Karl O. Benson has recently joined the NAZ team in the role of Vice President of Wealth Builds Minneapolis, leading the program. Karl enjoyed a successful corporate career at Nike and, for the past ten years, has dedicated himself to empowering youth through financial literacy and wealth-building. His previous experience includes leadership positions at One2One Mentoring, the Minnesota Black Chamber of Commerce, and 100 Black Men of the Twin Cities. Currently, he serves as the Chapter President of the Zeta Nu Sigma Alumni Chapter of Phi Beta Sigma, Fraternity, Inc.
NAZ would like to recognize the generous investment and partnership of U.S. Bank in realizing Wealth Builds Minneapolis. U.S. Bank is continuing to support North Minneapolis through place-based investing, the bank’s concentrated, long-term focus that involves community co-design with strategic partners in designated locations to help build wealth in low- to moderate-income communities.
(1) The Brookings Institution, “Examining the Black-white wealth gap,” February 2020.
