As we celebrate International Women's Day, it's important to acknowledge the challenges and costs uniquely experienced by women in their daily lives. These challenges are often worsened by ingrained societal constructs about gender roles and responsibilities.

In this article, we'll dissect the multifaceted cost of being a woman, from the pink tax phenomenon to the gender pay gap, healthcare disparities, and the overall economic impact.

The pink tax phenomenon: Gender price differences for goods and services

The pink tax is a gender-based discriminatory pricing where products that target women tend to be priced higher than the same products for men.

It's based on the idea that women's products are considered more luxurious due to the belief that women are generally higher maintenance. As a result, women pay 13 percent more than men for similar products.

Here are some areas where the pink tax is still affecting us.

• Some retailers and manufacturers are inflating disposable razors and razor cartridge prices by up to 25 percent.
• Women's deodorant has a marked-up price of up to 13 percent.
• Lotion has one of the least differences, with a markup average of around 1 percent.
• Girl toys, on average, have a 7 percent markup price.
• Certain accessories like elbow or knee pads and helmets may have markups as high as 13 percent.
• Children's clothing is also affected by the pink tax.
• The tariffs on imported products, especially women's clothing, can also be significantly different.
• Senior care items like personal urinals, supports, health supplements, and incontinence products typically have an 8 percent markup on average.
• Women pay approximately $41.4 million annually on auto loans, similar to the trend seen in car insurance.

Period poverty—the cost of femininity

On average, women spend $9,000 on feminine products over their lifetime. However, their spending could be less if the government saw sanitary pads and tampons as essential items rather than luxury goods.

The tampon tax, taxing menstrual products as non-essential items, adds extra costs for those who menstruate and discriminates by making essential items unaffordable for some.

Here's all you need to know about how the tampon tax restricts access to menstrual products and worsens period poverty.

• Approximately 500 million women and girls worldwide lack access to menstrual products and hygiene facilities.
• 16.9 million low-income women in the US struggle to buy feminine products, and two-thirds must decide between menstrual items and food.
• 14.2% of college students who menstruate in the US have faced period poverty.
• Researchers have associated period poverty with health issues such as depression and urinary tract infections.
• Lack of access to menstrual products can lead to discomfort, distraction, absenteeism, and even school dropouts among girls.
• Tax on menstrual products in the US varies from 4% to 7%.

The good news

Scotland was the first to pass a law providing [free access to all feminine hygiene products](https://www.ibanet.org/scotland-free-period-products-legal-provision#:~:text=Scotland has become the first,be available in education settings.). Although it's still a long way for the US to follow suit, some states have already abolished the tampon tax.

States that Exempt Period Products from Taxation

• California
• Colorado
• Connecticut
• District of Columbia
• Florida
• Illinois
• Iowa
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan Minnesota
• Nebraska
• Nevada
• New Jersey
• New Mexico
• New York
• Ohio
• Pennsylvania Rhode Island
• Texas
• Vermont
• Virginia
• Washington

States with No Sales Tax

• Alaska
• Delaware
• Montana
• New Hampshire
• Oregon

Hidden costs in housing and transportation

Housing and transportation are two of the biggest expenses for individuals and families, but there are hidden costs that disproportionately affect women.

• A study on New York City transportation showed that women incur additional monthly costs ranging from $26 to $50.
• Safety concerns about using public transportation late at night were identified as the primary influence on these additional costs.
• A Yale study found that single women paid around 2 percent more for homes and sold for 2 percent less due to a lack of negotiation.

Gender pay gap and economic disparities

The most recent data on weekly earnings reveals that women who work full-time earn $1,031, which is 83.8% of the $1,231 median for men.

Below is an example of the gender pay gap in some occupations.

The impact of pay disparities on women's economic well-being is significant and cannot be overlooked. Here are additional effects of the gender pay gap on women's financial stability:

• Women typically earn 83 cents for every dollar men earn, despite the Equal Pay Act of 1963, which prohibits wage discrimination based on gender.
• The gender pay gap leads to lifelong financial impacts, affecting social security benefits tied to earnings.
• Lower lifetime income also reduces women's pension benefits and retirement savings.

The impact on marginalized groups

According to the Institute for Women’s Policy Research, the wage gap was wider for women of color compared to white men.

Some factors seen contributing to this gender wage gap are the following:

• Occupational segregation: Women are overrepresented in lower-paying jobs and underrepresented in higher-paying ones.
• Gender stereotypes: The societal expectations placed on women that they are less capable or suited for certain jobs.
• Motherhood penalty: Women would take longer time off for maternity or childcare responsibilities.

The motherhood penalty

Perhaps no other economic penalty is as stark as the one inflicted on mothers. Parenthood translates into professional setbacks for women, forcing many to take career pauses, work part-time, or drop out of the workforce altogether.

Maternity or parental leave policies vary per state, with some offering paid leave while others provide none, forcing many women to take unpaid time off, affecting their income.

Below are the states that offer mandatory paid family and medical leave programs for eligible workers:

• California
• Connecticut
• Colorado
• Massachusetts
• New Jersey
• Rhode Island
• Washington
• New York
• Delaware
• Maine
• Maryland
• Minnesota
• Oregon
• Washington, D.C.
• District of Columbia

The ache of health care costs

Despite the Affordable Care Act, women still face higher out-of-pocket healthcare expenses amounting to an additional $15.4 billion in out-of-pocket healthcare expenses compared to men. This discrepancy arises from deductibles, coinsurance, and out-of-pocket maximums.

The difference in out-of-pocket expenses is primarily because women utilize more services than men. Some of these services are:

• Radiology
• Laboratory tests
• Mental health care
• Emergency room visits
• Office consultations
• Physical and occupational therapy
• Chiropractic services

Moreover, women typically live longer than men, with an average difference of 5.9 years. This longevity significantly affects their finances, requiring them to stretch their savings further.

Fight back to close the gap

Given these challenges, there is a clear and pressing need for women to construct equitable financial plans.

Women must save more aggressively, invest wisely, and seek opportunities to bolster their income and ensure their economic stability and well-being in their later years.

At Doing Well, we're committed to helping you maximize your financial well-being—all while considering the unique challenges women face in today's economy.

We’re here to help you with…

• Building a solid and robust financial plan and budget based on your personal needs
• Categorizing expenses and having them organized and ready for your CPA
• Insights into your credit, spending and debt situation
• Conducting audits of your insurance coverage and retirement plan
• Offering ongoing support that adapts to your evolving personal circumstances

We offer you recurring monthly calls, ongoing bookkeeping and consistent support so that you can focus on living your life. Doing Well is here to be your partner in financial management and put you on the fast path to personal financial success.

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