BLACK TAX — Impact on Generational Wealth
Financially Fit Africa on Black Tax and its impact on generational wealth.
“I cannot remember the last time she even asked about my well-being or career progression, it is always money!”
Black tax is the income young professionals give their families and generations before them for financial support. We talk to a young professional in Nairobi on the responsibility pegged to his success.
“Every time my mother calls me, it is one demand after another. I cannot remember the last time she even asked about my well-being or career progression, it is always money! I have always found excuses not to go home over the December holidays because I will fail to meet everyone’s expectations.
“My father died 8 years ago, I wish he’d be here to lift the burden off my shoulders. I honestly did not know he was making very many sacrifices for us. During his funeral; we realized that he had largely been living in debt. I remember his threadbare collars, he would make frequent visits to the tailor in a bid to conceal the visible tatters instead of buying new pairs of shirts. He would rather have seen us contented than reward himself, as a child, I presumed that was what adults should do till I fitted the shoe. I feel like he cushioned us from reality, he saw us through school and that should have been a long-term investment.
“8 years later, I am the only one employed in the family. My sister got married and she now has 3 children. Our youngest is in the university while my mother is in the village farming. The arrow pointed at me, I am the sole provider of the family. At 29, I have nothing substantial to show of my work experience. Every month, half of my salary goes to my baby brother’s housing, my mother’s never-ending needs, and projects at home that ensure my extended family lives comfortably. When I say half of my salary, I know you imagine that I make $1000 monthly. The truth is I barely make enough for myself, I live from paycheck to paycheck. With no savings and no one to even turn to with all my financial problems. I wish my father was alive, we would have shared the cost of uplifting everyone in the family.
“Whenever I am tempted to say no to these requests(for financial aid), my mother reminds me of all the sacrifices they made while putting me through school and I see the sense of sending money back home without questioning. People call this black tax but the connotation that comes with the word ‘tax’ implies that it is forced and cripples the good of what is supposed to be a virtue. You see, I hail from a Christian background. I am guided by the philosophy of giving more in order to receive more. The timeline for this though is equivocal, I have had to forfeit my personal needs to send money home but I have not received the more that is promised in the holy book.”
This imperative experience is just one among many that young black professionals have gone through or relate to. Their financial support is not just an expectation from their immediate families but extended families as well. Guided by Africanism, each generation is tasked with the responsibility of ensuring progressive development of structures within the household. I n this case, ubuntu is popularly used to ensure a sequence in understanding that a generation that is empowered makes certain of appreciating the efforts of the previous generation, and it is a symbiotic cycle.
Although the spirit of ‘ubuntu’ and ‘harambee’ guide the noble cause of unity and togetherness through supporting each other, numerous stories remain untold about the financial challenges on income earners. A multitude of Africans who have excelled in education and are out to reap its benefits in the job market and entrepreneurship world end up in a financial treadmill. The high expectation imposed in supporting family seems insensitive to their personal financial challenges and goals. This coupled with pressure to share their income with struggling family members rips them off the advantage of building generational wealth. As a result, saving, and investing is a road less taken as they spend on what Steve Down defines as a South expenditure. Learn more about this in his Financially Fit For Life program and the Wealth Compass.
The Wealth Compass teachings would suggest that it is noble to help those in need. Wealth is often built on a foundation of meeting the needs of others. On the flip side of the coin, income spending should be guided by financial wisdom towards appreciating assets. This is what creates the abundance that can be shared with the previous generation and paid forward to the next generation. A wealth vision can actually be the most sustainable way to fulfill social responsibility and achieve a debt-free life.
Comment below on how you think black tax is affecting generational wealth. Follow Financially Fit Africa to learn more about black tax, personal finance and personal wealth creation.
