Being a breadwinner can be quite a tough job for many who find themselves in a situation where they have to also support their families. The financial support that this breadwinner provides outside of their immediate needs is commonly known as 'black tax'.

BLACK TAX IMPACT ON THE BREADWINNER

Even though it's not exclusive to people of African-origin, other races, mostly people of colour are also experiencing it. Unfortunately for the young person, this might set them back in achieving some things they want or even delay realising their dreams.

"The burden of black tax may fall disproportionately on certain family members and such individuals need to have frank conversations with their families. The desire to provide might be rooted in personal traits such as care and generosity, but it can also be rooted in guilt for the sacrifice the family made to put the individual through school and/or tertiary education,' says Kenosi Magosha, Head of Recurring Savings Client Solutions at Sanlam Personal Finance.

FINANCIAL LITERACY IS KEY

Black Tax researcher, Nokubonga Komako says it's quite a struggle that young black professionals have to navigate because their parents were not empowered as past systems such as colonialism and apartheid were against black people having any kind of ownership. She says because of this, parents didn't have it easy economically.

However, she says it's important to actively educate black people about financial literacy. "I always say we need to come to a point where we put strategies for our black tax, such as educating or working to empower your siblings or anyone who can assist the family so not be the only one. Should no one not be willing to take that help you start putting boundaries e.g. prioritising groceries over helping siblings with pocket money' she suggests.

WAYS TO NAVIGATE BLACK TAX SUCCESSFULLY

Kenosi advises that one needs to introspect as to why they feel the way they do about supporting their family. This is because more often than not, these feeling may lead to negativity and a breakdown in relationships.

She suggests the following way in which one can best handle their predicament.

How to balance your financial obligations

_{- Choose your battles.}

Pick specific things you're willing to support, for example, education. That way, you won't get requests to fund parties or fashion items or can justifiably refuse them.

- Set a deadline.

Be up front about when you expect to see results when helping someone, for example, by agreeing on the date by which they should have gained their qualification. This will allow you to focus on your savings objectives.

- Plan for the unexpected.

Invest in financial vehicles such as funeral cover because death comes unannounced and you may need to cover the costs.

- Give but don't spoon-feed:

Don't destroy the person you're helping by letting them depend on you. Help them empower themselves so that they too can give to others.

- Let everyone take responsibility.

Work with your extended family to help them make sound financial decisions when they start earning an income. When relatives ignore such help, you may need to let them suffer the consequences of their bad financial decisions, so they learn from this.

- Exercise financial discipline.

You can only do so much with a limited amount of money. You need to trade off or you'll end up so heavily indebted that you may even lose your assets. Put money aside for yourself. Give what's left after you've saved for retirement. Ensure you'll retain independence in your old age, or you'll perpetuate the cycle of dependency.

- Instil financial discipline in your immediate family.

Start with your children by letting them know you stick to a budget when you shop. Start managing their expectations from a young age by limiting impulsive spending and talking to them about money.