A report recently released by the Corporation for Enterprise Development, a national nonprofit that looks at the wealth, poverty and financial security of families in the United States, gives an in-depth look at how American families are faring across the country in the current economic environment and what states are doing – if anything – to improve citizens’ financial security.

In my own state of South Dakota with its large Native population, the overall grade was a “B,” which means the state is doing a pretty good job of ensuring the financial stability of its residents. However, any Native in South Dakota would beg to differ with that conclusion. I would bet the majority of Natives in South Dakota don’t own their own business, their own home, and don’t have a four-year college degree. In short, financial assets are hard to come by for Natives in South Dakota. So what gives – how did South Dakota score so well?

The real story lies in the dissection of the numbers according to race. South Dakota ranked 51st – dead last – in the percentage of minorities who own their own businesses. South Dakota ranked 50th in the percentage of minorities who own their own home, and 44th in the percentage of minorities who have a four-year degree. Despite how rosy South Dakota’s report card looks, there is obviously some serious work to be done to ensure the financial stability of all South Dakotans.

I have not looked in-depth at the report’s scores for other states with high Native populations, but I suspect the story would be similar. I say this because in another CFED study done in 2008, the 10 states with the worst ranking in percentage of Natives who own their own businesses were: South Dakota, Arizona, North Dakota, Nebraska, Montana, Utah, New Mexico, Minnesota, Alaska and Wisconsin. All of these states have large Native populations. There seems to be a pattern.

So how do we fix the issues brought to light in this report? Is it entirely up to the state of South Dakota, or any other state with a high Native population, to equalize these disparities? Of course not. The Native/non-Native asset gap in America is a giant issue with generations of federal and state policy decisions, court opinions, and human emotions involved in its making.

Some good places to start are suggested in the report. The state of South Dakota, for example, could do a better job supporting minority business ownership by investing in nonprofit organizations like community development financial institutions that provide loans and technical assistance to small businesses. The state could also increase the number of minorities with four-year college degrees by matching the deposits of those who invest in a college savings account.

Increasing home ownership among Natives is a more complex problem that involves the federal government and tribal governments, but there are potential solutions. CDFIs could help, since they make loans not only for business ownership but for home ownership as well.

Another good place to start looking for solutions is within ourselves as individual tribal members. We could take it upon ourselves to learn about personal finances such as: Why it is a good thing to have a bank account instead of operating on a cash basis; what credit is and how to use it responsibly; how to develop (and stick to) a personal budget based on whatever our income is. These individual solutions are fully attainable and within our reach without relying on the state, federal, or even tribal government to help. And they are probably the best way to show immediate results.

In many Native communities there are resources for tribal members to start learning about personal finances and building assets. There are financial education programs offered by tribal colleges, tribal housing authorities, or CDFIs. Through programs called Individual Development Accounts there are ways tribal members can save money for a home, business, or college education. In communities where they exist, these programs have proven to be enormously successful at building Native people’s assets. State, tribal and federal governments should support them with sustained funding.

Natives don’t need to always finish last when it comes to wealth and financial asset building. The key lies in our ability to educate ourselves about personal finances. We must also urge our state, federal and tribal leaders to enact proactive policy measures and, more importantly, fund successful asset building programs. Then maybe South Dakota – and other Native states – could truly be applauded for ensuring their citizens’

financial security.

Tracey Fischer, a licensed attorney and member of the Cheyenne River Sioux Tribe, is the president and chief executive officer of First Nations Oweesta Corporation based in Rapid City, S.D. Oweesta assists with the establishment of community development financial institutions (CDFIs) and financial education and asset building programs in Native communities throughout the United States. Additionally, Oweesta works with Native communities to strengthen entrepreneurship environments. Tracey obtained her law degree from Yale Law School. She also has a B.S. in business administration

and accounting.