Chuma Siboleka. PHOTO: CONTRIBUTED
Chuma Siboleka. PHOTO: CONTRIBUTED

Set the tune for black tax

Chuma Siboleka
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.

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Namibian Sun 2024-11-10

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Premier League: Liverpool 2 vs 0 Aston Villa | Brighton 2 vs 1 Manchester City | Wolves 2 vs 0 Southampton | West Ham 0 vs 0 Everton | Crystal Palace 0 vs 2 Fulham | Brentford 3 vs 2 Bournemouth Katima Mulilo: 21° | 34° Rundu: 20° | 25° Eenhana: 19° | 29° Oshakati: 22° | 30° Ruacana: 20° | 31° Tsumeb: 21° | 30° Otjiwarongo: 18° | 30° Omaruru: 16° | 31° Windhoek: 15° | 28° Gobabis: 16° | 31° Henties Bay: 12° | 19° Wind speed: 26km/h, Wind direction: S, Low tide: 04:05, High tide: 10:43, Low Tide: 17:11, High tide: 23:27 Swakopmund: 14° | 15° Wind speed: 37km/h, Wind direction: SW, Low tide: 04:03, High tide: 10:41, Low Tide: 17:09, High tide: 23:25 Walvis Bay: 12° | 21° Wind speed: 39km/h, Wind direction: SW, Low tide: 04:03, High tide: 10:40, Low Tide: 17:09, High tide: 23:24 Rehoboth: 14° | 30° Mariental: 13° | 30° Keetmanshoop: 10° | 28° Aranos: 14° | 31° Lüderitz: 14° | 24° Ariamsvlei: 11° | 29° Oranjemund: 15° | 20° Luanda: 25° | 26° Gaborone: 18° | 22° Lubumbashi: 16° | 32° Mbabane: 17° | 21° Maseru: 12° | 26° Antananarivo: 15° | 32° Lilongwe: 23° | 34° Maputo: 21° | 29° Windhoek: 15° | 28° Cape Town: 15° | 24° Durban: 18° | 20° Johannesburg: 15° | 20° Dar es Salaam: 25° | 31° Lusaka: 22° | 34° Harare: 21° | 33° Currency: GBP to NAD 22.67 | EUR to NAD 18.84 | CNY to NAD 2.45 | USD to NAD 17.58 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.25 | EGP to NAD 0.35 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.64 | ZWL to NAD 0.04 | BRL to NAD 3.06 | RUB to NAD 0.18 | INR to NAD 0.21 | USD to DZD 133.12 | USD to AOA 909.05 | USD to BWP 13.4 | USD to EGP 49.25 | USD to KES 129.2 | USD to NGN 1664.84 | USD to ZAR 17.59 | USD to ZMW 27.2 | USD to ZWL 321 | Stock Exchange: JSE All Share Index Same 0 | Namibian Stock Exchange (NSX) Overall Index 1851.79 Down -1.41% | Casablanca Stock Exchange (CSE) MASI 14663.22 Up +1.21% | Egyptian Exchange (EGX) 30 Index 31267.47 Up +0.72% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - 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Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 684.46/OZ DOWN -0.0083 | Copper US$ 4.30/lb DOWN -0.027 | Zinc US$ 3 003.50/T UP 0.17% | Brent Crude Oil US$ 74.29/BBP DOWN -0.0215 | Platinum US$ 969.80/OZ DOWN -0.0274