My best friend just paid her uncle’s N500,000 rent out of her N600,000 salary. As she told me, she almost broke down in tears. Sadly, this is our reality. Many of us are paying Black tax. Our income is not just our own; five uncles, three aunties, six siblings and our parents rely on it.
Taking care of family can be fulfilling, but the responsibility can be overwhelming. We push our dreams aside to meet the needs of our loved ones. While we sacrifice, they seem to enjoy their best lives.
You can’t achieve your financial goals without learning how to manage Black Tax.
Some people suggest cutting family expenses entirely, but that is easier said than done. The better and safer option will be to manage it. In this article, I will show you how. But first,
What is Black Tax?
The term "Black Tax" was first coined in South Africa to describe the financial burden that African professionals carry when they support their extended families, often at the expense of their personal growth.
(Someone sharing money)
In Nigeria, 'black tax' refers to airtime transfers at midnight, unplanned urgent 2ks, and being the emergency contact for everyone’s school fees, rent, or health bills, even if you’re barely holding it together yourself.
The Hidden Cost of Black Tax
When not managed properly, Black tax can:
- Drain your savings
- Delay personal goals (like moving out, taking a course, or investing)
- Causes burnout and resentment
- Lead to financial instability or even debt
Now you know what the Black tax is and how it can impact you. Let's look at smart financial tips for Nigerians supporting their families.
How to Manage Black Tax Without Losing Your Mind (or Money)
1. Create a personal budget that includes Black tax.
Instead of treating Black tax as an emergency expense, build it into your monthly budget.
Allocate a set amount you can comfortably afford to give. This ensures you meet your obligations without sabotaging your goals.
Pro tip: Be firm with your budget. You can send “I’ve exhausted my budget this month” with boldness and peace.
2. Pay Yourself First (a.k.a. Save Like Your Life Depends on It)
Before you make any transfer to anybody, make sure you have taken out your savings.
Automate if you can; whether it is 10%, 20%, or more, make sure you are putting something aside every month. This is how you balance savings and family support.
Saving is easier with Jollof+. You can automate your savings and even earn 21.6% net p.a. on your money. Jollof+, a product of Baobab Nigeria, is secured by NDIC and licensed by CBN; your money is safe.
Pro tip: Lock your savings for a period so that you can’t touch it. You can do this with Jollof+.
3. Set Boundaries With Love and Clarity
You are not an ATM. Learn to say no when necessary, and have honest conversations with family members about what you can realistically afford. You don’t have to explain everything, but you can communicate with empathy.
Protip: Don’t force anybody to understand. Remember it is your money; you decide how you want to spend it.
4. Prioritize Emergency Savings
Emergencies happen to you and your family. Set up a separate emergency fund to handle sudden needs without touching your main savings or going into debt.
5. Track Every Naira In
Use a book or spreadsheets to track what you earn, spend, and give. This will help you identify patterns, plug leaks in your finances, and remain in control.
6. Set Up Your Loved Ones for Independence If you can
Instead of giving them fish, you can teach them how to fish. If you have the means, you can establish it for your loved ones.
This will ensure that they can take care of themselves. It can be a professional course, setting up a business for them or helping with their relocation.
Final Thoughts: You Can't Pour From an Empty Cup
Being the “family’s saviour” in Nigeria is hard. Black tax doesn’t have to leave you broke, bitter, or burnt out.
With clear boundaries, a saving culture, and a long-term mindset, you can support your people without sacrificing your peace or progress.
Remember: you are allowed to grow, not just give.
