Generational wealth.

The term “generational wealth” might conjure images of rich folk lounging on yachts, hopping and skipping among homes in exotic locations, or sporting fancy watches and handbags.

It can, indeed, be that.

But at its core, generational wealth is simple: It’s assets that a family can pass from one generation to the next. For many Americans, generational wealth is a home. That is why a home of one’s own is the foundation of financial stability. And that is why affordable housing is the trampoline that can spring families into financial security.

As simple a concept as it is, generational wealth is far from a reality for many people. For instance, the average Black family holds 24 cents in wealth — that is, savings, retirement accounts, real estate holdings, etc. — for every $1 held by white families, according to a 2023 wealth inequality report from the Federal Reserve Bank of St. Louis.

There are ways to correct this inequality for all Americans. Here are three ideas.

Build affordable housing. At Habitat for Humanity, “affordable” means a mortgage that is no more than 30 percent of a family’s adjusted gross income. This means the family can afford to buy the house and afford to live in it – that is, keep up with repairs, maintenance, homeowner’s insurance, and other expenses.

Establish equal access to affordable education. This means placing value on degrees from two-year colleges, promoting the trades as a great way to earn a good living, and setting aside the notion that only a four-year college degree is worth anything in the job marketplace.

Update the credit reporting system. Paying rent and utility bills on time should count toward a person’s credit score; right now, they mostly do not. This old-fashioned system unfairly hobbles people who are working hard to establish a financial foundation for their families.

Generational wealth doesn’t have to be a Rolex on the wrist or a “White Lotus” vacation or a place in the Bahamas. All it needs to be is a home for a family to call home, from generation to generation. Supporting affordable housing in the community is a solid place to start.