Prudential to Seed Investment Accounts for HBCU Students to Help Them Start Building Wealth
The first 500 students who apply will get a $1000 grant in their accounts
Prudential is trying to help students at historically black colleges and universities build wealth. Under a new program, the Student Investment Program, it will seed investment accounts with $1000 grants for the first 500 students who apply.
“This is our way of making sure that HBCU and MSI students are prepared, have the tools on hand to invest in the stock market and understand how to continue to stay investing in the stock market for the long haul,” said Sarah Keh, vice president for inclusive solutions at Prudential Financial.
MSI stands for Minority Serving Institutions. Students can apply by contacting the Student Freedom Initiative, which is accepting applications from students within its network.
“it's really to help them build up their investor acumen and confidence because we know there was a research report that was released earlier this year from the National Bureau of Economic Research where they found that stock market capital gains have appreciated five times more in value than real estate since 1950s,” said Keh. She added that the idea is to get Black students to see the value in owning stocks.
“That’s been part of the reason for the increasing racial wealth gap, because we know people of color, particularly Black Americans, value home ownership more than stock market investments,” said Keh.