Maybe you felt it before the reports came out.
Grocery prices are increasing. Twenty dollars used to fill a gas tank, but not anymore. A colleague got laid off. Then another one. You started doing the math on your finances and did not like what you found.
That feeling has a name. The Joint Center for Political and Economic Studies has officially declared signs of a “Black recession,” with Black unemployment sitting at 7.7%, the highest it has been in four years.
Tariffs are driving up the cost of everyday goods. Federal job cuts have hit Black workers the hardest, a group that made up nearly 19% of the federal workforce before the layoffs began. And for young Black professionals just finding their footing in their careers, the timing could not be worse.
This April, Financial Literacy Month means something different. It is not about budgeting apps or savings challenges. Right now, it is about protecting what you have and building something new before the window gets any smaller.
Ephraim Egbele is a certified public accountant and the founder of EFS Group, PLLC, a Houston-based firm that helps entrepreneurs get real clarity around their money. When the 2009 recession hit, Egbele lost his job, racked up $25,000 in credit card debt, and cashed out his 401(k) just to keep going. He built his practice out of that experience, and he has not forgotten it.
“It’s not a matter of if, it’s a matter of when,” Egbele said. “When it happens again, do you have money you can pull from that will tide you over?”
His starting point is the emergency fund, and he wants readers to think about it differently. Forget the $1,000 rule. The real goal is to cover at least one full month of your actual expenses.
“Even if it seems astronomical right now, it is a goal to build towards,” he said. “So that whenever these things happen, and they will, you have somewhere to pull from besides your investments.”
To manage financial stress, it is advisable to part with your credit card by cutting it up, hiding it, or entrusting it to a reliable person. This is crucial because accumulating debt interest can worsen your financial situation if your income is insufficient to cover it.
“For anyone who has already dipped into their 401(k), I strongly recommend taking a loan from the account instead of a straight withdrawal,” Egbele said. “A full withdrawal comes with both a tax bill and a 10% early-withdrawal penalty that will sting long after the emergency passes.”
Egbele advises identifying enjoyable activities to monetize and excelling in one’s job to become indispensable, emphasizing adaptability to market changes.
“And if entrepreneurship is not your path, figure out how to be so good at your job that you become somebody they cannot afford to let go,” Egbele said. “The market is always going to change. The question is whether you are ready to move with it.”
Jekwenta “Coach K” Primm speaks directly to the hustlers, the side-business owners, and the entrepreneurs who are trying to grow despite everything working against them. Primm knows what it feels like when an institution closes a door on you.
She spent 15 years at Wells Fargo, watching Black clients get turned down for the loans and credit lines they needed. She was let go from her job after her growing business helping entrepreneurs access grant funding caught her employer’s attention.
She turned that moment into a seven-figure empire and wrote about it in her book, “Fired Into Freedom.” Today, she teaches business owners across the country how to access $50,000 to $100,000 in grant funding.
“Grants are available for everyone, no matter where you are in your business,” said Primm. “You do not have to be a nonprofit to qualify.”
She breaks it down by where you are in your journey. Just getting started and do not have an LLC or EIN yet? Go after micro-grants like the Legacy Grant or the Greatness Grant. Already have your business set up and need capital to grow? Look at corporate grants.
“It’s not a matter of if, it’s a matter of when. When it happens again, do you have money you can pull from that will tide you over?”
Ephraim Egbele is a certified public accountant
“Starbucks has them. So do T-Mobile, Verizon, Progressive, and Allstate. Running a business that already generates revenue?” said Primm. “That is when private foundations and government funding become available, and unlike federal programs, private foundation money cannot be frozen by Washington.”
Primm recommends starting with a financial checkup. Print your bank statement. Look at every line and ask yourself where you can scale back without cutting yourself off entirely. Then take that same statement and upload it to ChatGPT. Tell it your six-month goal, buying a house, building a savings cushion, saving a down payment on a car, and let it build you a real budget and savings plan around that goal.
“Most people are not taking advantage of a completely free resource they already have,” she said. “Walk into your bank and ask them what products and services can actually help you get where you are trying to go. Use what is already available to you.”
