Have you heard of black tax? Are you experiencing it?
Trevor Noah, award-winning comedian, actor and producer defines it well in his book, Born a Crime.
“My mother calls it ‘the black tax.’ Because the generations who came before you have been pillaged, rather than being free to use your skills and education to move forward, you lose everything just trying to bring everyone behind you back up from zero.”
What exactly is Black Tax?
Black Tax is a term used to describe the financial burden that successful black and brown people are expected to bear to support their less financially secure family members.
It can be a financial and emotional strain. It can also have a negative impact on the individual’s ability to save and build wealth.
Now, permit me to share with you a story of one of our community members who has been on this wealth-building journey with us:
“I grew up in a poor family. My parents worked hard, but they never made enough money to support us all. As the oldest child, I was expected to help out financially from a young age. I would often give my parents any money I made from odd jobs.
When I got older, I was able to get a good job and start earning a decent salary. I was finally able to help my family out in a meaningful way. I would send money home to help pay for my siblings’ school fees and other expenses. I would also visit them as often as I could.
I felt good about helping my family. It made me feel like I was giving back to them for all the sacrifices they had made for me. However, over time, the financial burden of black tax became too much for me to bear. I was struggling to make ends meet on my own, and I was starting to feel resentful of the fact that I had to support my family.
I finally reached breaking point when I realised that I was putting my own financial future at risk by continuing to support my family. I had to make a decision: keep going as I was and stay broke, or set some boundaries and focus on my own needs.
It was a difficult decision, but I ultimately chose to set some boundaries. I told my family that I would still help them out, but I would no longer be able to support them financially in the same way that I had been. It was a difficult conversation, but it was necessary.
Setting boundaries with my family was one of the best decisions I ever made. It allowed me to focus on my own financial future and to build a life that I would be happy with. I’m still able to help my family out, but I’m no longer sacrificing my own well-being to do so.”
If you’re struggling with black tax placed upon you by family members, I want you to know that you’re not alone.
There are many people who are going through the same thing. I also want you to know that there are things you can do to help yourself, just like our member did in her story
Talk to your family about the financial burden you’re facing. Let them know that you’re still willing to help, but that you need to set some boundaries.
Set a budget and stick to it. If you decide to keep supporting your loved ones, don’t exceed the amount you’ve chosen to provide. Remember when budgeting, you should pay yourself first i.e., pay into your savings/investment account.
Keep your financial information to yourself. By so doing, you may have less pressure placed on you by others who perceive you to be flush with cash.
Educate them. It can become a never-ending cycle of paying out to support your loved ones. Help them understand that with some financial discipline and knowledge, they can gain some financial independence.
Seek professional help if you’re struggling to cope with the emotional stress of black tax. Doing so might help you acquire the tools you need to deploy points 1-4 above.
Finally, remember that you’re not alone. There are many people who understand what you’re going through and who can offer support. Join a group where you can share with others in a similar situation.
Black tax is a complex issue, but it’s one that must be addressed.
The guilt you feel is not a good enough reason to truncate your financial future and that of your heirs.
We must work to break the cycle, for everyone’s sake, and focus on building generational wealth.
We’d love to hear if you think this would be useful, and also what you would want that space to be like?
