We need to recognise the significant social burden carried by young black working South Africans in today’s society.

“If you really want to understand the reality of our high unemployment levels, speak to young black professionals,” says  Sinenhlanhla Nzama, Marketing Actuary at Old Mutual who himself supports his extended family and is all too familiar with the expectations of unemployed family members on those who have “made it.”

Nzama says most young black professionals, who in many cases are the first generation to have a stable job, are supporting parents and other unemployed family members with primary healthcare, education and housing costs. This is putting an immense financial strain on new income earners over and above all the other factors such as rising electricity and petrol prices.

The Old Mutual Savings and Investment survey found that 50% of the youth surveyed were struggling to make ends meet. Santie Schindehutte, case mediation manager at the National Debt Mediation Association says the organisation has found many working professionals in a similar situation as they are expected to step in to support immediate and extended families because they have a stable income.

“This places not only a financial but emotional responsibility on the shoulders of the income earner to provide finances even if they cannot afford to.  In a lot of instances they do not want to let their family down and there is really no other income source to assist the family,” says Schindehutte, who adds that the responsibility for many of these individuals to look after family is taken very seriously – they believe their integrity and standing in the family will be affected if they are not able to provide.  “We have had instances where consumers contemplate suicide as this will provide their remaining family with much-needed financial relief.”

Schindehutte adds that some of the other impacts are low self-esteem, aggressive behaviour, substance abuse and depression, all of which result in a vicious cycle of the breaking-down of relationships, poor performance at work, and generally a negative affect on families.

Nzama says young black professionals are supporting their families not only financially but also emotionally.  “When I visit home I am surrounded by people who have an expectation that I can do something to help them,” says Nzama. Family members will come to him and ask him where they can find work or how can they start a small business. “As working professionals we may have more information but we don’t have enough to really help,” says Nzama, who finds that he plays the role of both mentor and father figure. “You have to provide emotional strength, especially if there is no other father figure in the family.”

Nzama says the desire to help one’s family comes not only out of a feeling of obligation, but also out of the realisation that if you are able to assist a family member to obtain an education, they too can join the ranks of the employed and help one to carry the financial burden.

Nzama’s older brother for example supported him through his studies and once he was qualified and working, they were able together to support their mother by buying her a home. “On his own there was no way my brother could have afforded it,” says Nzama. Now together the brothers are able to help his mother and extended family – the burden, although still large, is at least shared. Nzama’s sister is finishing her studies and will hopefully be financially independent soon.

How to cope with the social burden

Buying property

Nzama says for many young people, helping their family to buy a home is a priority. “We are often the first generation to have a stable job and to offer our parents the opportunity to own a home.” Even if the parents have a home, for most young people buying their own home is a priority, especially if they already have a child. Nzama says this is a big commitment and you need to plan for it. Give it some time rather than making it an emotional decision.

The same principle applies to buying your first car. “Do not rush due to social pressure, but rather save up for a decent second-hand car over a year or two years. You can buy it cash, or take a very small loan,” says Nzama, who adds that the aim should be to avoid debt and free up as much of your salary as possible.

When considering buying a home or car, first draw up a budget, understand what you really need to live on and then calculate how much you can realistically afford.  You also need to build up a deposit to qualify for a mortgage and to ease the monthly burden. While there may be pressure from your family, you need to explain the situation. Tell them you need time to build up a deposit and be in a financial situation where you can afford it. “Mothers are the most understanding people if you just explain to them that this is what you are trying to achieve,” says Nzama.

Kill the short-term debt

The Old Mutual Savings and Investment survey shows that 25% of the youth have a credit card and 50% have at least one store card. “A lot of young people face social pressure to look good and have nice clothing. They take on debt to buy these things even before they start working and then end up blacklisted,” warns Nzama. He adds that if people really understood the cost of short-term debt they wouldn’t have it.

Unsecured debt like store cards and credit cards just adds to the burden. If you are aiming to buy a home or support a family member with their studies you need to focus on getting rid of debt. If you have a goal then it helps you to look beyond the new pair of shoes.

Have an emergency fund

As the family breadwinner you will be continuously faced with unexpected expenses such as medical bills. Last month alone Nzama paid out R3 000 in unexpected expenses. You need to build up an emergency fund so that you don’t have to go into debt to help your family. If you are also trying to pay off debt, find a balance between debt repayment and building up that emergency fund so you don’t have to go into debt again.

Become a mentor

While it may be difficult to pass up on the good things in life which seem so easy to obtain through credit, find a motivation that takes you beyond the material things in life. Nzama says his motivation comes from inspiring people beyond his family. “It is hard to instill good financial discipline when young people see all this flash and fast cars around them, but if you get to them early enough you can teach them good financial discipline and motivate them to work harder.”

Create a legacy

Nzama admits that being treated like an ATM does not give him any sense of satisfaction or purpose – it is just money going out. What he has realised is that he needs a sense of purpose. As a result he has created an education fund. This will allow him to help his extended family to study further. “I am now saving for them in advance. It feels much better to do it this way than just to give it out.”

Nzama and his peers have been assisting learners within his church on an ad-hoc basis with regards to their tertiary education. They have now formed a BMBA Education Fund allowing them to combine their efforts. “Instead of assisting these learners as we go and dipping into our emergency funds whenever there are some registration fees needed, we decided to pre-fund these,” say Nzama, who explains that the Education Fund is a simple savings scheme whose proceeds benefit the youth who want education. The objective is to pay for application and registration fees to tertiary institutions – which can be as high as R3500 per student. “This year we will be encouraging and assisting learners to apply for bursaries and NSFAS funding.” This Fund does not belong to the church but is driven by eight young professionals who attend the church.