LISTEN | How to balance black tax with your wealth goals

From tracking your expenses over the months to understand how much you are contributing towards the upkeep of your family to protecting your sources of income.

These are some of the steps young black professionals can implement to ensure that they do not compromise their financial futures.

For many, the daily realities include sending money to parents towards their health care and everyday household needs and making a transfer to your unemployed sibling for groceries and for them to be able to get to their next interview.

You pay bills and insurance premiums, set aside money for transport for the rest of the month, and then try to save towards your own financial goals.

This reality is becoming increasingly common, says Simphiwe Mhlongo, an underwriter at Bidvest Life.

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Mhlongo points to Stats SA’s Quarterly Labour Force Survey for the first quarter of 2026, released in June, which shows that unemployment among people aged 15 to 34 is nearly 46%.

“Among those who have completed matric, 33.7% remain unemployed, and 12.2% of tertiary graduates are not in formal employment,” says Mhlongo.

Navigating these responsibilities is difficult and, without a clear strategy, can lead to financial setbacks.

While these obligations — often referred to as black tax — are deeply personal and culturally significant, Mhlongo says the economic reality is stark: without careful planning, this multi-directional financial pressure can severely compromise your own financial health, ultimately delaying crucial life milestones like further education, buying a home, and building long-term wealth.

July marks National Savings Month.

Mhlongo says for many young black people, supporting families becomes part of life from the moment they earn their first salary.

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“For some, it means helping parents with household expenses or paying school or university fees for younger siblings. For others, it extends even further, with responsibility continuing after graduation while siblings search for work in a difficult job market.

“As a result, many young professionals find themselves supporting siblings who simply cannot find work, often while also caring for elderly parents and contributing to the wider extended family.

“While family responsibilities are deeply personal and often rooted in values of care, gratitude, and shared success, they can also place significant pressure on your personal finances.

“Without careful planning, these obligations can ultimately force young professionals to delay crucial milestones, including further education, home ownership, and long-term saving.”

Mhlongo says having conversations around family responsibilities requires sensitivity.

“For many people, supporting [their] family is not seen as a burden at all. It is simply what you do. This is why these conversations should never be about questioning these responsibilities. Instead, they should focus on helping you protect your own financial wellbeing so that you can continue supporting the people who depend on you.

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“Supporting your family should never mean leaving your own future unprotected. There are financial solutions designed for the realities many South Africans face today. The first step is having the conversation early and speaking to a qualified financial adviser who can help you build a plan around your own circumstances.”

Mhlongo shares four things on how to support family without ruining your budget:

Understand the full extent of what you contribute: Most people know roughly how much money they send home each month but overlook the additional costs that accumulate throughout the year. Tracking all expenses over several months gives you a far more accurate picture of your true financial commitments and helps you budget more realistically.

Planning for these commitments makes it easier to balance them alongside your own rent, transport, debt repayments, retirement and emergency savings, and investments. Looking after your own financial future does not need to be at odds with supporting your family. In many cases, it is what allows you to continue doing so over the long term.

Protect every source of income that supports your family: Many young professionals do not rely on just one income. Alongside full-time employment, many also freelance, consult, run online businesses, or earn money through other side hustles to help meet their financial responsibilities. These additional earnings are just as important to protect as your primary salary. Income protection, which pays a monthly income if illness or injury leaves you unable to work, may be worth considering as part of a broader financial plan for business owners and salaried employees.

Think beyond traditional life cover: According to Bidvest Life’s risk reality calculator, a 30-year-old female is 10 times more likely to experience an illness or injury that prevents her from working for two weeks or more than she is to die before retirement. This is why risk benefits such as income protection and critical illness cover are just as important as life cover that only pays out after you die.

Make financial planning a normal conversation: Many young income earners invest considerable time researching a vehicle purchase or negotiating a home loan, yet very few seek financial advice early in their careers. Understanding the different long- and short-term insurance solutions available to you, and how they work together, is essential for building the future you imagine. This is especially true when it comes to life insurance; understanding your most likely risks means you can protect yourself from unforeseen circumstances that might otherwise prevent you from taking care of yourself and your dependents.

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