Abstract
While income helps families afford the living expenses of today, wealth is the key to long-term stability and financial growth. Yet despite legal progress toward expanding financial opportunities for all Americans, the disparities in wealth by race and ethnicity are at historic levels. The racial wealth gap, defined as the difference in median wealth holdings between groups by race or ethnicity, has consistently shown that typical white households hold multiple times the wealth of their African American and Latino peers. Today, the typical white household owns $8 in wealth for every $1 owned by African American and Latino households. Public policy plays a crucial role in household asset-building by establishing the rules of the game for household finances and facilitating (or hampering) savings. The Racial Wealth Audit provides the information necessary to identify and promote public policy decisions that overcome discrimination and the barriers to wealth accumulation rooted in history.