Is Black Tax Holding You Back? Experts share strategies for balance

IOL News

2 days ago

Navigating black tax and balancing family support as well as personal financial goals.
Image: Pexels
The concept of Black Tax is deeply ingrained in society, where individuals who achieve financial success frequently take on the duty of aiding their extended relatives, which can sometimes put their personal financial objectives at risk.
This financial obligation can cover numerous expenses, ranging from tuition fees to everyday living costs and utility bills. At times, the pressure of Black Tax can slow personal financial progress and hinder one's efforts to focus on long-term financial aspirations, like buying a house or planning for retirement.
Speaking to IOL, Boniswa Siwundla, a Senior Lecturer, Researcher in Family Financial Socialisation at the University of Johannesburg, said there are practical ways to deal with family members' requests without crippling your budget.
"The first step is awareness because knowing exactly what your financial landscape looks like, that is, what comes in, what goes out, and what you are being called to support, gives you something solid to work from. Mapping out a monthly plan that includes both personal goals and family support helps reduce guilt and allows you to act intentionally rather than reactively," she said.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Next
Stay
Close ✕
Siwundla added that it's important for individuals to set firm and realistic commitments on both fronts without jeopardising their interests.
"Even if you're contributing to family expenses, your future deserves a line item, even if it's R100 a month. It is less about the amount and more about the habit. Small, automated savings build momentum," she said.
She added that helping out family members should be made part of the budget so that it doesn't come as a surprise every month because this creates visibility and structure and prevents overshadowing other priorities.
"This does not mean your personal goals are less important; it simply acknowledges your full reality and allows you to work within it, not against it."
Siwundla added that it's also important for individuals to be transparent and not make commitments they can't fulfill.
'I'm not able to give the full amount, but I can contribute something smaller this month' is one way to stay in a relationship without overextending yourself. The key is consistency. Boundaries are not just about what you cannot do; they are about creating stability so you can continue to show up in a way that can be maintained," she explained.
Even though the journey looks different for everyone, as a researcher, Siwundla said it was possible to carry the weight of Black Tax and still be successful.
"Many young people I've spoken to described learning to redefine what success means. For some, success is being able to support others and move forward at their own pace. It's not about perfection or comparison; it's about progress with integrity. It may take longer, but it is absolutely possible."
To assist individuals with their savings, Siwundla said they can use models like stokvels, or group savings plans, which can be powerful, especially when they have clear goals attached.
"For individual saving, tax-free savings accounts or beginner-friendly investment platforms with low fees can offer a starting point. It's less about picking the perfect product and more about building the habit of saving consistently."
In conclusion, Siwundla said financial habits are shaped long before people open bank accounts; they are shaped through what they observe, feel, and carry.
"Black Tax is part of that inheritance. While it can be heavy, it's also a reflection of love, care, and survival strategies passed down through generations. The goal, in my view, is not to escape it, but to respond to it with more clarity, intention, and balance," she said.
Meanwhile, Psychologist DR Nombusa Gama, posted on her TikTok account and explained that Black Tax is not an issue, the issue is people pleasing and lack of boundaries.
"Black Tax involves gaslighting, coercion, and manipulation...Your family members don't force you to go over and beyond for them, they just manipulate you and guilt trip you into believing that you are the only one that can save them, and you are selfish for saying no,'' she said.
Gama further explained that the desire to feel wanted and the fear of being labelled a bad person makes people to give in to demands from their family.
"Your yes enables their behaviour, you teach them that it's okay for them to expect you to bend backwards for them. You teach them to run to you as their saviour," she said.
According to Gama, buying your parents food and taking care of their basic needs, can't be classified as Black Tax, it's considered as being responsible.
"Some people talk about being coerced to build houses at home because they had job. They talk about taking loans to fund those projects because their family didn't listen when they explained that they don't have money. And in order to keep the peace, they took out loans and now they are drowning in debt because of those decisions," she said.
Evelinah Nkunah, 30, who works as a clerk, is the only one employed in her family. He salary feeds her two children, two siblings and her elderly mother back in Middleburg, Mpumalanga.
Nkuna works at a hospital in Gauteng and sends money to her family every month and she's also building her mom a house.
For Nkuna, it's not Black Tax, but she appreciates her mother and the sacrifices she made while raising her and her siblings.
"My father left us when we were young, my mom was unemployed. Instead of sitting and doing nothing, she went to Joburg and found a job as a maid. She visited us every month while we were staying with our grandmother and always made sure that we are fed and we had everything we needed for school. She made us her priority and because of that, she neglected herself and didn't even build herself a house
"She stopped working because of health issues and I can't neglect her because now I'm in a good position. Me building her a house is how I show my appreciation. Also, sending money every month is not an issue because she's taking care of my children, and my siblings are still trying to get jobs and I understand their position, unemployment is rife is South Africa," she said.
[e-mail]
IOL News
Get your news on the go, click here to join the IOL News WhatsApp channel