Beat the ‘black tax’ blues

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Just for a second, imagine a shanty village lined with untarred roads.

Visualise a collection of tiny houses, little more than a mismatched collection of iron sheets crudely joined together to form a shelter, scantily protecting the occupants from the elements.

See the sparse furnishings inside the homes that provide only the essentials.

The cupboards have no food, home only to a small collection of crockery.

As the sun’s first rays kiss this sleepy little village, a figure rises from her bed, throws her blanket to the side, lights a candle and goes about heating water to wash.

Dressed in her school uniform, she collects her books from the top of the wardrobe where she keeps them away from both the ash from the stove and the curious, grubby hands of her younger siblings.

Determined, she begins her daily journey to school, her body fuelled only by a desire to succeed.

She becomes the first in her family to matriculate, graduate from university, work in a plush office in the city and drive a car.

From the outside it seems she has it all, but her bank account tells a different story.

This is because every month, like clockwork, she sends money home to care for her parents and help put her younger siblings through school.

This is the reality of many black SA children, which has been dubbed “black tax”.

Popular literature explains that this phenomenon stems from the country’s current economic disposition which — partly due a lack of generational wealth in black families — forces young professionals to financially provide for their loved ones, perpetuating an often endless cycle of poverty.

“[Black tax is] the extra money that black professionals are expected to give every month to support their less fortunate and extended families,” reads a definition from the Urban Dictionary, an online portal for novel and trending slang words and phrases.

The debate around this issue has become a bloody amphitheatre with celebrities, comedians, authors, scholars and social media enthusiasts all giving their two cents’ worth.

Opinions on whether this is right or wrong remain a mixed bag, but the burning question remains: Should caring for your family be regarded as a form of tax?

Having the means to care for your family should be seen as a privilege. It’s an honour and something you should be proud of

According to artist and activist Ntsiki Mazwai, the term black tax carries a negative connotation.

“Having the means to care for your family should be seen as a privilege. It’s an honour and something you should be proud of,” she said.

Sikholwethu Msuthwana — founder of NGO Ihlumelo Foundation in Duncan Village which provides free tutoring to more than 100 children to ensure they succeed at school and beyond — said giving should come naturally for any child from an underprivileged home.

“As young children we all have dreams of what the future will look like.

“For some its improving the livelihoods of those at home or in the community at large,” he explained.

“I and the University of Fort Hare students I work with give up our time every afternoon to tutor these kids and that’s our way of giving back.

“We teach them that education is key, and not to isolate themselves once they’ve made it in life.

“They must remember what sacrifices were made for them to be where they are.”

Dr Samuel Fongwa, senior research specialist in the Human Sciences Research Council’s Inclusive Economic Development research division, published an article based on a study which sought to explore young black professionals’ perceptions of and attitudes towards black tax.

An extract from the article reads: “Graduates did not see their degree as a private achievement but recognised their responsibility for sharing their earnings and finances with extended family along with the knowledge attained.

“They spoke of seeking ways to improve the lives and livelihoods of others in their immediate and extended families ... A key value here was that of ubuntu.”

Ubuntu is a globally recognised term derived from Nguni languages and loosely means “I am, because you are”.

It highlights the spirit of community entrenched in African culture.

Can black tax fall under this umbrella? But whether tax or not, right or wrong, it’s clear that for many the system will remain an infinite reality.

A key to survival could be in finding a balance between how much you give to yourself and how much you can spare for your family.

And because black tax is rooted in money sharing, young professionals are often left cash-strapped mid-month, with little or no money saved for the future.

Eloise Boezak, head of customer experience at African Bank, shared some basic money saving tips, which include:

• Set a goal and commit to it — this keeps you honest and acts as a deterrent for getting sidetracked;
• Keep track of all expenses and costs, even hidden ones like bank charges, to see how much money can be saved every month;
• Cut down on buying coffees and sandwiches on the way to work. Rather bank that money at the end of the week;
• Get a side hustle to supplement your income;
• Do a sweep of your wardrobe and sell all unwanted items;
• Should you get a windfall, either a tax rebate or inheritance, put a portion into your savings account immediately;
• Keep your cellphone in good condition and sell it when you get an upgrade; and
• When you have paid off a debt, let your savings account now benefit from the same amount each month.

“Many people at the moment feel they are purely in survival mode and saving anything is just out of reach. It is never impossible to start accumulating wealth ...start small and be consistent in your efforts. Saving could start with as little as R50 per month,” she advised.

In an article which appeared on popular youth website Youth Village SA, young professionals are given some basic survival tips when faced with black tax.

First, choose what cause you are willing to support at home, such as educating younger siblings and stick to that; be clear with your family on just how long you are able to support them then focus on your own saving goals; a funeral cover could be a handy investment when faced with unexpected expenses such as a funeral; advise your extended family on how to make better financial decisions which could benefit all in the long run; use what you have in hand and only help with what you can afford to assist with to avoid going into debt; and last, do not let your extended family become financially dependent on you indefinitely.

“We don’t give to people who don’t deserve naturally,” Mazai said.

“In this instance both the giver and the receiver have to take responsibility.

“If the people who are receiving have no grace and gratitude, then I don’t see why you should be doing it.”

Luvo Adams, a counselling psychologist based in East London, cautioned that while taking care of one’s family can be a healthy way of showing gratitude and appreciation for people who have shaped the person you are, it should not be burdensome.

“This can have negative psychological implications, leaving you with feelings of resentment, depression and anxiety due to financial pressure,” she explained.

It’s easy to become resentful when you work from sunrise to sunset to financially support unemployed family members — many of whom are fit to look for work — but opt not to.

Almost every family has the drunk uncle who speaks of an injury from the 1980s which keeps him from working, but not from quaffing endless amounts of beer, usually at your expense.

We all know the petty jealousy from younger siblings and cousins who, though they are fed and dressed by you monthly, still whisper behind your back about how little you are doing to support them when you can afford to do more.

They want to eat the exact food you stock in your pantry, wear the same clothing labels and use the same cellphone as you.

Then come the messages and calls at the end of every month — a little nudge so you don’t forget your duties when the money rolls in.

Adams said: “Consider consulting your doctor or therapist when you notice feelings of constant sadness, lack of energy and diminished interest in activities that used to be pleasurable.”

After all, I think all would agree that the returns to be gained from this type of tax should be nothing but gratifying, right?