We’re entering one of the most hectic times of the year. With an election just around the corner, holiday season rapidly approaching the station and tax season right behind that, The Root knows what it’s like to feel financially stretched and counting pennies.
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As Black people, our financial stresses are much greater than other communities because of systemic racism and the ever-so-growing wage and economic gaps in this country. It’s a lot to manage, but that doesn’t make it impossible! Heading into the craziest — and coziest — time of the year, it’s time we start watching out for these financial traps. Take a look at some of the day-to-day expenses we don’t think about, but have the greatest impact on us.
Church Tithes
This one is for all the churchgoers... Did you know that you can write off your church donations as a deduction? According to IRS rules, “the taxpayer must claim charitable contributions as itemized deductions using Schedule A of IRS Form 1040.”
Hair Products
We all know once you step into any “natural hair-care” aisle, the price automatically goes up. With natural hair, you have to worry about conditioners, styling gels, edge controls, brushes, defusers, combs, and soooo much more. Natural hair care is an investment on its’ own, so to help cut some of the costly expenses, try out natural everyday ingredients like coconut oil and flaxseed gel.
Hair Salons
Staying on topic with hair care, Black hair salons and stylists are taxing like crazy now-a-days. Knotless braids can run you anywhere up to $1,000 in some cities, and that doesn’t even include a wash and blow dry. To cut back on your product consumption, try doing your own protective styles. YouTube and TikTok are your friends!
Housing
The economic gap between Black and white people is continuously growing. Despite the long strides Black folks have made to build and maintain our wealth, there are just certain things that will always be a hassle... like buying a home.
Bodega/Corner Store Tax
Quiet as it’s kept, if you’ve ever been to a bodega, you know just how much the prices can vary from store to store. Black tax is absolutely an issue at corner stores, but here’s how you move around it. First, start shopping at farmers markets for produce. The price and quality can’t be beat! Secondly, don’t be afraid to bargain. Call out these tellers for changing up the prices. Hold them accountable!
Food
With many urban communities located in the middle of food deserts, it’s easy to see why McDonald’s and Chipotle are regular alternatives. Here’s the thing though, all of those Big Macs add up, and in the end, you end up spending more money on eating out than you would on one trip to the grocery store. Easier said than done, we know, but in the long haul, it’s cheaper, easier, and tastier to simply cook at home.
Student Debt
On average, Black students graduate with $25,000 more student loan debt than their white counterparts, according to education data. With this in mind, it’s time we be more intentional with which colleges our students go to. Choose an HBCU! Apply for scholarships! And parents, if you can, take on some of that debt for your child so they can start their life with freedom and ease.
Wage Gap
Unfortunately, this one is a sticky situation. History tells us Black people make 24.4 percent less than white people, according to the Economic Policy Institute. But it all boils down to a real need for policy change. Who you vote for matters!
Bottled Water
We know how much Black people love bottled water, and in many cases, bottled water is safer than consuming tap water depending on your city and neighborhood. But here’s the problem: Black people spend more on bottled water than anyone else. With this in mind, we have to find sustainable alternatives for our basic human needs.
Clothes
There’s actually some truth in the stereotype that Black folks care too much about clothes. According to Knowledge at Warton, Black and Hispanic people tend to spend significantly more money on clothes than our white counterparts. There are more ways to be creative, unique, and stylish while still keeping the budget low. Thrifting and repurposing your old clothes are great ways to reimagine your closet!
Jewelry
Sticking with material items, jewelry is another trap that always does Black folks in. We just want to look good, and there’s nothing wrong with that! But with this in mind, sometimes beauty supply earrings can do the same job. Always treat yourself, but do it responsibly.
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