Set the tune for black tax

As a cultured people, in our societies, we strongly believe a child is celebrated and raised by the entire village/clan/family. So when that child succeeds and becomes better off, there is some natural, especially financial, responsibility that they feel towards the entire village/clan/family.

The entire world in the 21st century is burdened by systemic economic inequalities, leading to financial inequalities in society. Because everyone experiences these financial inequalities, finance is the most well-known and widely discussed issue that requires constant solutions.

Originally, the concept of black tax stems from the historical and ongoing financial challenges faced by black societies and communities.

Not all members of every community will achieve financial breakthroughs and success, leading to some people from the same family achieving greater financial success while others struggle to make ends meet on a daily basis.

Those who reach financial stability or success may naturally feel a sense of obligation to support their struggling, less fortunate family members.

The true intentions of black tax are linked to a sense of familial duty.

At the same time, this can also place a heavy financial burden on those who are expected to always fulfil this duty of financial support.

This then hinders personal financial progress and growth, reducing the ability to save or invest for one’s own future. This again feeds into the cycle of financial dependency within the same families.

To address black tax head-on requires a 'setting the financial tune' approach that balances personal financial survival with the support of family members, essentially setting financial boundaries.

Financial boundaries can only be achieved when they are realised by the self.

These boundaries must be evident in the form of lifestyle choices and personal financial practices, habits and attitudes towards finances. A cousin who drives a N$2 million car must obviously donate the N$600 000 for the village elders' funeral.

This expectation is based on the financial lifestyle the said cousin exhibits and practices on a day-to-day basis in the eyes of the family/village.

There is nothing wrong with their eyes; it is the financial 'tune' set by the cousin over a period of time.

Another example is the disappointed stare of a car guard in a random parking lot when he receives N$1 from someone driving a shiny, expensive car that clearly cost millions.

While it is important to prioritise one's own financial well-being, always keep in mind that we do not choose who witnesses us reaching these high financial levels.

Setting clear boundaries and having open and honest conversations with family members about their financial expectations of you is important, so they can give a clear indication of how these expectations build up and how far they go.

We cannot limit expectations, just as we cannot ask our families/villages to turn a blind eye to our financial successes and milestones.

We would want them to celebrate and enjoy these new levels with us.

Add the family to the list of budget priorities and make black taxes part of the financial plan.

From funeral donations to baptisms, to weddings, to doctor's fees to annual family Christmas celebrations. These must all become part of the personal financial plan.

Black Tax involves both the givers and the receivers – both parties have a responsibility and role to play in changing its course and effects to set the new financial tune.

Setting this new financial tune is a part of the personal financial wellness journey that may require time and religious practice from all involved.

*Chuma Siboleka is a trade, investment, and financial education economist.