Black Tax is a familiar concept in many families. While older generations had limited opportunities to improve their financial situations, Millennials strive to break the cycle for their children, and some Gen Z outright say ‘no’ to family support as an obligation.

Investment professional Chipiwa Mukono defines the Black Tax as the financial support that more well-off family members unwillingly give to less financially stable relatives. 

“I use the term ‘unwillingly’ because when individuals offer support willingly, they are less likely to perceive it as ‘Black Tax’,” she explains.