Practical suggestions for keeping your finances in check. Overview Managing money as a student can be difficult, whether you live in your own country or not. However, when you consider potential cultural differences, socioeconomic disparities, and language hurdles that you may experience as an international student, the process becomes much more challenging. An additional complication for African international students comes from the ‘’Black Tax’’. Black Tax has been defined as the extra money that black professionals have to put aside each month in order to help their extended families (Ratlebjane, 2015). This can frequently be experienced as a responsibility or a pressure to provide financial support for one's extended family, or kin network, while also attempting to build their own career and assets. ''Tax'' implies a negative pressure and the assumption that these financial transfers will reduce savings and investment on the side of those making the payments. This economic strain also has the potential to significantly affect family relations. While Black Tax is most of the time depicted negatively, those who are responsible for supporting their extended families may also discover ways to empower themselves and their family by generating generational wealth. Theoretical perspectives Theoretical perspectives By having the resources to make a living in their new homes, international students often become part of an economic system in their host countries. Once settled in their host countries, they may not break all economic connections with their homelands, since many maintain some type of economic and social ties with relatives and friends back home, thus making economic contributions through various channels (Hagen‐Zanker & Siegel, 2007). Transnational enterprises, investments, and monetary and other remittances transferred to family and friends in home countries are examples of these channels. For some authors, giving is an act of developing and creating social relationships and from this perspective, these money transfers may be viewed as a component of this reciprocal exchange system that social ties are part of (Graeber, 2014). In other words, although one might experience negative emotions due to the pressure of sending money back home, this might also lead to a sense of still being an active part in one's family and kin network. References Graeber, D. (2014). On the moral grounds of economic relations: A Maussian approach. Journal of Classical Sociology, 14(1), 65-77. Hagen‐Zanker, J., & Siegel, M. (2007). The determinants of remittances: A review of the literature. Ratlebjane, M. (2015). How black tax cripples our youth's aspirations. Mail & Guardian, 30. Context for scholars Black Tax can be a familiar term for many Mastercard Foundation scholars who support their extended families back at home during or after their studies. The rationale for this assistance mainly emerges from the wealth disparities that can be observed between many African countries and North Europe/North America. The roots of these wealth disparities are multi-layered and complex, with colonialism, economic instability, historical injustices, racism, structural inequality, and educational differences all playing significant roles. It is thus natural to want to look after one's own broader family network by extending a helping hand. At the same time, this can also have a negative impact on your wellbeing if this form of support is taking a toll on your finances or is causing you stress. To avoid this, it is important to set financial boundaries with yourself and with others to determine what is okay and what is not okay. Practical Suggestions Keeping your finances in check. Choose one day each month to look through your budget. Make a detailed shopping list. Rather than going to the store and picking up whatever catches your eye, make a shopping list. Weekly micro-budgeting. If you're having trouble staying organised on a monthly basis, make a weekly plan. Know your boundaries and stick to them. It can be tough to be honest about what you can and cannot afford, especially when confronted with family members who may be going through a difficult period. Nonetheless, it is a valuable lesson to learn. Money isn't your only resource. When it comes to establishing generational wealth, assistance is available in a variety of forms. Sometimes, the most significant sort of assistance is not money itself, but lessons in money management. Don't be afraid to have ''tough'' discussions and agree on expectations with others. Although many people find it difficult to discuss money, it is important to try to destigmatize this through open and honest communication. Take care of yourself. While empathy and support are crucial and necessary human attributes, be mindful of sacrificing your emotional health on the altar of obligation and remember that unrestrained support may not be productive. Budget for Black Tax. After making sure that your basic needs are covered, include an amount that you think is reasonable to give towards extended family support. Mastercard Foundation scholars’ experiences Listen to the Scholars’ Podcast: Negotiating Black Tax We shared our experiences of the need, obligation, and pressure to provide financial support to family and friends back home in Africa and the impact thereof. We discussed how we deal with keeping up with financial requests from others who often assume that transitioning to North America from Africa makes us automatically wealthy. Our families are asking us, "When are you coming back home? When are you sending the money? When's your next job? Mastercard scholar Sometimes those financial responsibilities, this lack of financial capacity actually deepens the pressure that we face during the transition period. Because you think, ‘I want to save’, you're also thinking about your security, your future, and those things sometimes they lead to that pressure that comes with it. It takes a lot of awareness or self-awareness to actually deal with that moment and with that process, but I think that's something I also see or identify as well. Mastercard scholar Useful Links Plan your budget Budget planning This article was published on 2024-06-24
