Black Tax And The Squeeze On South African Families

For many South Africans, payday feels less like a relief and more like a reminder of how thin the household budget has become. Between rising costs and the cultural expectation of supporting extended family, the burden of Black Tax is weighing heavier than ever.

The Cost Of Living Crisis

The Competition Commission’s Cost of Living Report paints a sobering picture: the average worker spends more than half of their salary – 57% to be exact – on just transport and electricity. That leaves almost nothing for groceries, school fees, or unexpected bills. Add steep interest rates on loans and credit cards, and families are stuck in a relentless cycle of trying to stretch their rands further than they can go.

The Hidden Weight Of Black Tax

A University of Johannesburg study revealed how deeply Black Tax shapes financial life for millennials, particularly in Black households. The obligation to support both younger and older generations has become a defining feature of what is known as the “sandwich generation.” This group, already raising children, is often also helping parents and even grandparents make ends meet.

Old Mutual’s 2025 Savings & Investment Monitor shows this reality is only growing: households supporting multiple generations rose from 41% in 2024 to 44% in 2025. What used to be a quiet family responsibility is now a major factor in financial planning, emotional well-being, and even retirement readiness.

Finding Ways To Cope

Atlas Finance’s Niresh Gopichand believes while families can’t stop prices from climbing, they can control how they respond. He encourages small but meaningful shifts: cutting hidden costs, using loyalty programmes, borrowing responsibly, and most importantly, talking openly about the realities of Black Tax instead of carrying the burden in silence.

More Than Just Money

Ultimately, Black Tax is not only about finances – it’s about cultural identity, family responsibility, and community care. For many South Africans, it reflects pride in supporting family and ensuring no one is left behind. But as costs continue to climb, the conversation around balance – between honouring tradition and securing individual futures – is becoming more urgent.

Source:IOL 

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