If like me, you’re not Gen Z, you are probably wondering what black tax is. I was also wondering what this term was after I saw it flying on social media a few months ago. After some digging, I understood what it was and I must say many people fall under this umbrella of black tax without even realising it.
Black tax means the financial responsibilities certain individuals bear because of the level of success they have attained. The well-to-do person basically caters to or supports the needs of those relatives who are not as privileged. It mostly happens with black people and in Africa when one family member travels abroad or has ‘made it in life’.
One major advantage is that it can actually help uplift members of the family. This especially works in cases where sacrifices from other family members had to be made for a person to become successful. Black tax is a way of making sure the sacrifices of these people are not in vain.
But there should be a limit to the burdens on this member of the family. That brings us to the disadvantages of the black tax, which are quite a few.
- Financial strain: The expectation to support extended family can create significant financial pressure on individuals. This can lead to a lack of savings and even debt in extreme cases. For some, the constant burden of catering for other members of the family can impede their career growth and cause them to not advance as they should. If this is hitting home for you, please check on yourself.
- Resentment and guilt: The pressure to contribute can lead to feelings of resentment or guilt, particularly if the individual struggles financially themselves. You begin to see cases of children loathing their parents or siblings just because of the unnecessary pressure on them.
- Dependency issues: Rather than seeking to be self-sufficient, dependent family members remain reliant on their ‘benefactor’’. Free money is sweet so they see no reason to work hard or strive to contribute anything to the family.
Black tax is detrimental to the affected individuals in the long run, especially when a person lacks the ability to prioritise and plan well. Here are several ways a person can work towards being free from the burdens of black tax:
- Set clear boundaries: Creating boundaries is number one. Tell your family members about your financial situation and what you can realistically contribute. You can be firm yet compassionate. Setting boundaries helps manage expectations and prevents feelings of guilt when you cannot fulfil every request.
- Have a budget: Having a budget brings clarity to your financial state. By tracking your income and expenses, you can identify how much you can afford to contribute to family support without affecting your own financial health. It can also help you prioritise your needs and savings goals.
- Encourage self-sufficiency: Instead of giving every time and agreeing to being their sole source of income, you can show them job training opportunities, start up a small business for them or even encouraging them to get jobs, all these is to ensure that they are not always asking you for money.
After everything that has been outlined, balance is key in dealing with family members and money related issues. Have a wonderful week ahead.
