Aug
Articles, Building better men, Finance
How To Navigate Through Black Tax
Most young ‘black’ professionals carry the burden of being the “first everything” to their families, which means that they have to take care of their families financially. This concept is known as “Black Tax”.
In formal terms, Black tax is a term for financial support that a professional or entrepreneur of colour is obliged to provide to their family on a continuous basis outside of their own living expenses.
Yes, it’s the correct thing to do to support your family and loved ones financially, but at some point, it may affect your financial growth. Especially when you’re living in an economy that is tough to live in. So you have to be very careful and strategic with your financial decisions.
Here are a few ways you can conquer black tax even in this economy because you’re a champ!
Learn how to set boundaries
Let your family members understand that you have a boundary with how much or how far you can go with financial support. For example, if you’re supporting a cousin or a sibling, you can give them a limit of how many years you plan on offering your financial aid.
Have open money discussions
If you have grown up in an African family, you know that topics of money are taboo and forbidden. But when you think about it, a lot of financial issues are brought about due to a lack of financial transparency.
Create an open and safe environment where you and your family can have honest discussions about your financial situations. Be vocal about your current situation as well as your aspirations. This will help avoid a lot of entitlement around your finances as a supporter.
Equip your family with financial resources
Educate them and provide them with financial resources they can use to better their understanding of finances.
Pay yourself first, champ!
This basically means putting your income into your savings and investments first before spending it on expenses or leisure. Put yourself first! Get your finances in check and then you can in be in a better position to help where you can. At the end of the day, you can’t serve from an empty plate.
Read our article about paying yourself first here: PAY YOURSELF FIRST
Do you agree with the idea of Black Tax? And how can other people create more boundaries around Black Tax?
Let us know what your thoughts are in the comments section below.
Until next time Gents!
Article inspired by: https://www.withkoa.com/blog-posts/lets-talk-about-black-tax
You can always help your parents out but do not let them pressurize you
I don’t subscribe to the idea of black tax. If I send money home to aid my family, it’s because it was in my heart to do and not out of expectation. Setting boundaries gives peace of mind — you give with a willing and open heart instead.
Black tax is the reason why most young people dnt progress in life if people do not put boundaries to it.
Black tax is here to stay with most of us as Black people. Currently, some of my relatives are covered in my policies because a lot is expected of me should anything happen to them. They won’t understand any education about telling them what to do or not
Amid the struggles of trying to meet your financial goals, there is always an unspoken challenge for many young professionals in Africa – ‘black tax.’
It is inescapable for many young adults in Africa to carry the financial burden of supporting their extended families. It is a cultural obligation. It is expected of you. The calls come in when you least expect, and in many cases, you cannot say no.
This is especially so for firstborn children. However, the burden is not only limited to older children. Irrespective of what number you are on the family line, when you are the first person in the family to reach a certain level of success, the burden of supporting the rest of the family inevitably falls on you.