The Fish Foundation




				FINANCIAL LITERACY Despite overall growth in the American economy over the past decade, the wealth gap between rich and poor continues to grow at an alarming rate. Between 1972 and 2001, the income of Americans in the top 1 percent grew by 87 percent. For people at the very top -- the 99.99th percentile -- the income gain was 181 percent. By contrast, the bottom 20 percent grew by only 3 percent.¹ The same holds true for the economic disparity between races. In 2002, the typical black household in the United States had a net worth of $5,988. That same year, the median net worth for white families was $88,651.² We believe that the key to closing the wealth gap is education -- financial education. The Fish Foundation partners with organizations to spread the gospel of financial literacy from a practical perspective; for example, how to save toward a home or a college education. We encourage schools and banks to teach financial literacy in impoverished communities. A stronger financial base among the poor means less dependence on state-sponsored handouts. Financial literacy means that the poor can gain the wisdom to leave a financial legacy for their children. A basic education in how to spend and save might just be the ticket to closing the wealth gap, once and for all. 1. Dew-Becker, Ian L. and Gordon, Robert J., "Where Did the Productivity Growth Go? Inflation Dynamics and the Distribution of Income," Northwestern University (December 2005) 2. White, Griff and Henderson, Nell, "Wealth Gap Widens For Blacks, Hispanics," Washington Post (October 18, 2004)