In this episode, we had the privilege of hosting Rahkim Sabree, a financial coach and thought leader who shares his in-depth perspective on the intersection of financial education, systemic barriers, and the often-overlooked impact of financial trauma. Rahkim’s journey is not only a story of personal transformation but also a mission to address the complex layers of financial empowerment in a world where poverty, race, and generational trauma play significant roles in shaping economic realities.
This conversation goes beyond numbers and budgets; it’s about healing, self-discovery, and resilience. Rahkim’s experience sheds light on how emotional, psychological, and systemic influences intertwine in our relationship with money and the path to financial well-being.
Recognizing Financial Trauma as a Systemic Issue
Financial trauma often stems from more than just individual financial mistakes—it is rooted in broader systemic issues that create barriers for entire communities. Economic disparities, racial inequities, and lack of access to capital can create a cycle of financial stress that spans generations. This trauma manifests in feelings of fear, shame, and distrust around money, preventing people from making empowered financial decisions even when they possess financial knowledge. By recognizing the systemic nature of financial trauma, the focus shifts from blaming individuals for their financial situations to addressing the external conditions that contribute to those struggles. This perspective is crucial for creating a more holistic approach to financial well-being, where healing involves addressing both personal habits and the societal structures that perpetuate financial stress.
Bridging the Gap Between Financial Literacy and Empowerment
Having financial knowledge does not automatically lead to financial success, especially when emotional and psychological barriers are at play. Many people know how to budget, save, and invest but still find themselves unable to execute on that knowledge due to underlying fears or past negative experiences with money. This gap between knowledge and empowerment is significant, as it reveals that financial literacy alone is insufficient for creating lasting financial health.
True empowerment involves not only understanding money management but also developing the confidence and emotional resilience to act on that knowledge. For example, someone may hesitate to invest despite understanding its long-term benefits, held back by deep-seated fears of financial loss rooted in past experiences. Bridging this gap requires financial education to be paired with emotional support, allowing individuals to feel safe in taking the necessary financial risks that lead to growth.
The Long Shadow of Generational Trauma on Financial Behavior
Generational trauma can deeply influence financial behavior, often without individuals even realizing it. Passed down through family narratives or societal conditioning, this trauma affects how people approach money. In many cases, financial habits—such as a fear of credit or reluctance to invest—are survival mechanisms inherited from previous generations who faced economic hardship or exploitation. Understanding these behaviors within the context of generational trauma helps explain why certain financial decisions that seem irrational today were, at one point, essential for survival. For example, avoiding credit may have been prudent in the past when access to fair lending was scarce, but it may no longer serve someone’s best interests today. Acknowledging the influence of this trauma is the first step toward breaking these cycles and empowering individuals to make financial choices based on present realities rather than inherited fears.
Financial Literacy vs. Access to Resources
Even those with financial knowledge can find themselves trapped by a lack of access to critical financial resources. In many communities, financial literacy is often not enough because the tools and opportunities to act on that knowledge—such as affordable credit or investment platforms—are simply not available. This highlights the importance of addressing not just education, but also the structural inequalities that prevent people from using what they’ve learned. Many may understand the importance of credit or savings but are forced into predatory lending or high-interest debt because they lack access to fair financial products. To truly close the wealth gap, financial systems must become more inclusive, ensuring that individuals have the resources they need to turn financial literacy into tangible financial progress. Without addressing this access gap, financial education efforts will continue to fall short.
The Therapeutic Side of Financial Coaching
Addressing financial struggles often requires more than just practical advice; it involves digging into the emotional and psychological barriers that keep people stuck in unhelpful money patterns. Traditional financial coaching focuses on strategies like budgeting or debt repayment, but it may neglect the deeper emotional issues that drive financial behavior. By integrating therapeutic approaches into financial coaching, individuals can explore the root causes of their financial habits, such as fear, shame, or past trauma. This holistic approach enables people to confront and reframe their relationship with money, leading to more sustainable financial behaviors. For instance, someone paralyzed by a fear of financial instability might, through therapy, uncover a past experience of loss that continues to shape their financial decisions. Once these emotional blocks are addressed, it becomes easier to move forward with confidence, whether that means investing, saving, or simply managing day-to-day expenses more effectively.
Resources:
Rahkim Sabree Website.
LinkedIn.
Substack.
Rahkim In Forbes.
The Trauma of Money
The Color of Money: Black Banks and the Racial Wealth Gap by Mehrsa Baradaran.
Decolonizing Wealth by Edgar Villanueva.
Post Traumatic Slave Syndrome by Dr. Joy DeGruy.
The Miseducation of the Negro by Carter G. Woodson.
PowerNomics by Dr. Claude Anderson.
Racial Wealth Gap Statistics.
2050 Trailblazers podcast.