Picture this; you get your salary alert. That beautiful, glorious notification hits your phone. You smile. For a brief, shining moment, you’re king (or queen) of the world.
Then, the second wave of notifications begins.
- “Mummy, my data has finished.”
- “Brother, I need to buy this textbook for my project.”
- “Sister, just small ₦20k to hold body, things are hard.”
Suddenly, that “king” feeling fades, replaced by a familiar, heavy sigh. Welcome to the world of “black tax.”
It’s a term that has become a strong, shared reality for millions of Nigerians. It’s not a tax from the government. It’s the unspoken, often obligatory, financial support that a successful person is expected to provide to their family; parents, siblings, cousins, and sometimes, the entire village. Sometimes, that success is just measured by the fact that you’re earning money.
This expectation is rooted in a beautiful part of our culture; community. The concept of “I am because we are.” We believe in lifting others as we rise, however, in today’s economic climate, this cultural pillar often feels less like a noble duty and more like a crushing financial and emotional weight.
According to a 2023 savings report, over 80% of income earners pay black tax. For the majority (56% of them), this isn’t an occasional thing; it’s a monthly, recurring expense, just like NEPA bills.
This constant outflow has a direct impact on your own life. It’s the reason “personal savings” feels like a myth. If not properly planned, it could be a major part of why your dreams of buying land, investing, or even just having a robust emergency fund keep getting pushed to “next year.”
So, how do you honour and support your family without sacrificing your future? How do you balance love and loyalty with financial logic? It’s not about becoming selfish. It’s about having a sustainable plan, and we’ll get into it shortly, but before that, let’s talk about the emotional implication of Black Tax.
Understanding the Emotional Price Tag of Black Tax
Before we talk money, let’s talk feelings. The hardest part of black tax isn’t the Naira; it’s the guilt. The guilt of saying “no”, the guilt of setting a boundary and being called “stingy” or “proud”, the guilt of investing in your own future when you know people back home are struggling right now.
This creates a cycle of chronic financial stress. You feel trapped. You can’t build your own foundation because you’re constantly patching up leaks in someone else’s, and this can lead to resentment, anxiety, and burnout, which helps no one in the long run.
The “How”: Practical Steps To Manage Black Tax and Build Wealth
The first step to managing black tax is to give yourself permission to have a future. You cannot pour from an empty cup. Building your own financial stability isn’t selfish, it’s the only way you can provide sustainable, long-term help.
People often talk about cutting their taxers off, but you can’t realistically cut everyone off, it often isn’t our desired way out. The goal is to move from being a reactive ATM to a proactive family contributor, so let’s get into the “how.”
1. Budget for It. Call It by Its Name
The single most effective thing you can do is to stop treating family support like an “unexpected” expense. It’s not. It’s a recurring, predictable cost.
When you draw up your monthly budget, create a specific line item for it. Call it “Family Support,” “Parental Allowance,” or “Black Tax.” Give it a fixed, realistic amount that you’ve calculated after your own non-negotiables (like savings and essential bills) are covered.
This puts you in control. When the allocated amount is finished for the month, it’s finished. It’s no longer an infinite, anxiety-inducing black hole, it’s a managed expense.
The only way this step would work is if you consciously shed the guilt, no matter how hard it feels.
2. Have the “Honest Conversation” (Without the Drama)
This is the tough one. We’re often expected to be silent providers, but silence breeds unrealistic expectations.
You don’t need to show anyone your bank statement, but you can (and should) communicate your financial goals. Try saying this to your key dependents:
“Mom/Dad/Brother, I love you and I’m always here to support you. I’m also working hard to build a solid foundation for my own future (and, by extension, ours). To do that, I’ve created a proper budget. I’ve allocated XYZ amount every month as an allowance for you, which I will send on XYZ day monthly. I want to be open about this so we can all plan.” The words can be tailored to the personality of your family members and how you often communicate with one another.
This hard conversation communicates care, responsibility, and boundaries. It’s not a “no”; it’s a “here’s how I can help sustainably.”
3. Create Room for Emergencies
We know the next question might be “what about real emergencies?”, the “urgent 2k” that’s actually a medical bill?
This needs to have also been planned into your budget. Alongside your “Family Support” budget, have a separate “Emergency Fund.” This is your fund, for your life.
When a true family emergency strikes (e.g., a critical health issue), you can make a conscious, clear-headed decision to dip into your emergency fund. This is radically different from emptying your main account for a non-urgent “urgent” request. It keeps your day-to-day finances stable. Be logical in your evaluation of what qualifies as a real emergency, and you should be good with this step.
4. Invest In Your Future
So, you’ve budgeted and you’ve set boundaries, you now have a small surplus. What do you do with it?
As financial analysts have noted, the problem with black tax is that it restricts your capacity to save or invest. It traps you in a cycle of servicing the present, never allowing you to build for the future. The surplus you now have is to rectify this.
Invest in and for your future self. Not with what’s left but with what’s first, based on the structured financial plan you already made.
Your goals and dreams need a growth engine. A simple savings account is often not enough to beat inflation or grow your money. You need your money to be productive.
This is exactly why we built AltInvest. It’s our digital investment platform that allows you to build real, long-term wealth ethically. Instead of letting your hard-earned money just sit, AltInvest allows you to invest in ventures that generate actual profits; asset-backed investments, you can even invest in gold. The upside is that you don’t need to have saved a lot of money to start, you can start investing with as low as ₦10,000. Remember that the goal here is to build gradually and sustainably for yourself.
You Can Be a Good Child and a Wealthy Ancestor
Black tax is a complex blend of love, duty, and financial strain; that if not properly managed can leave you in a position where you have no real wealth or inheritance to leave to those after you. You don’t have to choose between being a good son/daughter or sibling and being a financially secure person. You can be both.
It starts with moving from being passive to control. All we’ve shared can help you gain that control, and it can be remembered this way: PCB
- Plan:Give “Family Support” its own line item in your budget.
- Communicate:Set clear, kind, and firm boundaries.
- Build:Pay yourself first by automating your savings and investments, and don’t dip into these for urgent sounding requests that are not real emergencies.
By managing your obligations with wisdom and building your own wealth with intention, you do more than just secure your future. You become a true pillar of support, one who can give from a place of abundance, not anxiety or resentment.
