As a couple, you have the power to combat the “Black Tax” by leveraging your partnership to improve your financial management, combine your efforts for debt elimination, and set joint goals.

It’s true that many young, Black couples are delaying wedding plans and purchasing expensive items to invest early in assets that accrue value instead, such as property. Why is this shift happening? The prevalence of the Black Tax is a strategic issue for Black households.

As many young, Black professionals and business owners prioritize financial assistance for their families, the compounding effects of the racial wealth gap—or the Black Tax—start to take their toll. From education inaccessibility to limited entry into highly compensated careers, the Black household is often shortchanged in its ability to build #GenerationalWealth.

A quarter of Black households have zero or negative net worth, compared with a tenth of white families, according to the Economic Policy Institute. A recent survey also found that only 24% of Black couples feel confident in their ability to handle their finances as a team. This makes financial planning all the more important for achieving financial stability and security.

One of the key benefits of couples working together on finances is the ability to plan and budget more effectively. Planning small things in advance, like buying groceries in bulk or sharing costs on services, allows for more money left over. This extra money can be used to pay down debt, add to savings, or fund investments.

This can be especially helpful as a 2020 study found that Black households have an average of $5 in liquid assets for every $100 in white households. By working together, couples can identify areas where they can cut back on expenses and redirect those funds toward building wealth.

By using our Money Management tool and Spending Insights in OneUnited Card Command, couples can leverage the intuitive dashboards to help them track spending, establish saving goals, and more.

Another important aspect of managing finances as a couple is setting shared goals. Whether it’s saving for a down payment on a home, paying off student loans, or planning for retirement; having a shared vision for the future can help keep both partners motivated and on track.

For example, by setting a goal of homeownership and working together to achieve it, couples can increase their chances of becoming homeowners and building wealth through property appreciation.

It’s no mystery that managing finances as a couple can be a point of stress and anxiety. By leading with transparency and holding each other accountable, we can combat the Black Tax.

A significant fear among Black couples is falling into debt. Sit down and discuss any outstanding debt or any debt expected to be incurred for future goals like starting your own business. By working together, couples can take steps to reduce their debt and improve their credit scores, making it easier to qualify for loans and other forms of credit.

Build your wealth for the next generation using our 6 Step Action Plan:

Remember to use our Money Management tool and Spending Insights in OneUnited Card Command to help track spending, establish saving goals, and more to achieve generational wealth.