The Pink Tax.
Sounds really cute, right?
But actually, it describes how companies charge female consumers more than male consumers, sometimes for the same item. For example women’s razors are more expensive than men’s razors. This also starts really young, with toys and children’s clothes.
Percentages differ in different countries, and the numbers can change year on year with inflation, but the trend sadly stays the same
So while it’s not a literal tax, the overall effect is similar to being taxed just for being a woman.
Women already face so many obstacles around money. This includes: a Wage Gap, an Earnings Gap, a Wealth Gap, an Investing Gap, a Pensions Gap, a Divorce Gap, and a Grooming Gap. When you add in inflation and a cost of living crisis on top of everything, it paints an even more difficult financial picture.
So if you’re a woman, how can you beat it?
- Men’s products.
Consider buying products targeted at men. Let’s be honest, if a product targeted at a man will do the same job and meet your needs, for example soap, shampoo, fragrances or deodorant, that might be an option for you.
- Cashback
Using cashback apps and sites will help your money go further. If you’re shopping online anyway, use this tech to your advantage (sometimes it’s as simple as adding an extension to your browser). It might seem like small amounts, but they’ll add up over time.
- Budget
Over the long term, make sure you have a budget so that you can spend mindfully on the things that spark joy while still smashing your money goals.
- Emergency Fund
You’ll also want to keep putting money aside into your emergency fund if you don’t have a fully funded one yet. This will allow you to leave situations that are no longer serving you, whether it’s a job or a relationship.
- Investing
Once you’ve got your emergency fund in order, think about investing. While the value of your investments can go up or down and you may not get back what you put in, this is by far the best chance you’ll have of growing your wealth and beating inflation in the long run.
- Talk about it
And (most importantly) – talk, talk, talk. Have conversations about this issue with the women, and men, in your life. Knowing it exists is a great start to helping women make those very important purchasing decisions.
