A net worthy cause: African American Strategic Planning Group striving to change the community through education. (Black Wealth Initiative).

FIRST, SOME GOOD NEWS. THE 2002 ARIEL MUTUAL FUNDS/ Charles Schwab & Co. Inc. Black Investor Survey found that 74% of high-income African Americans (those earning more than $50,000 a year) own stocks or stock funds. That's up sharply from 57% in 1998, an impressive advance in the face of a vicious two-year bear market.

Now, for the grimmer side of the story. The same survey found that black investors still trail whites in investments. More important, African Americans lag sharply when it comes to net worth. According to our research, black's net worth is 10% of their white counterparts.

"African Americans must be educated that wealth is not defined by income but by net worth--the difference between what you own and what you owe," says Darryl T. Owens, a county commissioner in Louisville, Kentucky. "A big paycheck is not wealth."

To help spread the word, Owens and the organization he founded, the African American Strategic Planning Group (www.aaspg.org), organized a "What Are You Worth?" symposium in Louisville this past May. It offered nine workshops on topics ranging from budgeting to retirement planning. Nearly 200 African Americans, mainly from the area, attended the daylong affair, paying a $25 fee. "We hope to have another conference next year, reaching out to African Americans statewide and expand to a regional conference in a few years."

Although Owens and the AASPG have grand ideas, you can spread the word about wealth on a much smaller scale. Here we focus on DOFE principles 4 and 10, which both emphasize the importance of net worth. Below are ways to help your neighbors build wealth and pass it on to future generations.

* GO TO CHURCH

Local churches are ideal to preach the gospel of economic empowerment. "Instead of focusing on one church you might get two or three to work together, as long as they each have a significant membership," says Owens. "The seminar could be announced to the church members, who would be asked to bring other people from the community as well."

* JOIN THE CLUB

At Owens' symposium, many participants expressed interest in investment clubs. These clubs are fitting forums for educating African Americans about wealth building. "We believe investment clubs are a powerful way to get people involved in investing to gradually build experience and confidence," says Carla Arnold Foster, vice president of specialized segment marketing at Charles Schwab in San Francisco. "When people new to investing get together and exchange information, they can get their questions answered, share experiences, and build confidence in themselves and in the investing process."

* ASK FOR ON-THE-JOB TRAINING

Mellody Hobson, president of Ariel Capital Management in Chicago, says that the workplace may be an excellent place for disseminating financial information. "That's where people talk about money," she says. "It is especially important that African Americans contribute as much as possible to their 401(k) plans to build up adequate retirement funds. In addition, participants should avoid being too conservative in these plans to attain higher long-term returns."

The catch, according to Hobson, is that many companies' 401(k) plans are run by a single financial firm, and those firms may be leery of having other advisors speak with employees. "You can go to your human resource department and see if it's possible to have an African American financial advisor put on a specialty workshop," she says. "Some companies are cooperative. We did one for Quaker Oats during Black History Month." If you get permission, you can contact the National Association of Securities Professionals (www.nasphq.com) for leads to local advisors who'll speak to your company.

Inviting a financial professional to address your group may pose a problem because these so-called workshops can turn out to be product pitches. "But you can reduce that risk by pre-screening the individuals who are coming in," says Edwin Fox, an investment representative with Edward Jones Investments in Louisville. "Ask for references from other group.

* DWELL ON THE DETAILS

Whether you're planning a large or small meeting, don't underestimate the time and effort that will be involved. "You have to get the word out," says Owens, "and that may mean mailing out brochures or other printed pieces. If you are working with local financial firms, they may have mailing lists you can use. In any case, find out how much advertising will cost."

Food and beverage needs should be included in cost projections. Having a well-known luncheon speaker may also increase attendance.

"People who attended one workshop were upset that they couldn't attend another that was held at the same time," says Owens. "See if the advisors putting on the workshops will do them twice to reduce conflicts." When you're spreading the word, you want to be sure everyone has a chance to hear it.

Declaration of Financial Empowerment

From this day forward, I declare my vigilant and lifelong commitment to financial empowerment I pledge the following:

1 To save and invest 10% to 15% of my after-tax income

2 To be a proactive and informed investor

3 To be a disciplined and knowledgeable consumer

4 To measure my personal wealth by net worth, not income

5 To engage in sound budget, credit, and tax management practices

6 To teach business and financial principles to my children

7 To use a portion of my personal wealth to strengthen my community

8 To support the creation and growth of profitable, competitive, black-owned enterprises

9 To maximize my earning power through a commitment to career development, technological literacy, and professional excellence

10 To ensure that my wealth is passed on to future generations