Are you a beneficiary of the pink tax?

The life of a woman is not easy. The first is the rate of increase of only Existing As a woman. Nicknamed the “pink tax,” this unfair price differential affects products and services across all sectors, from toiletries to car insurance.

Let’s look at some facts about the pink tax, where it is affecting women the most, how it can impact your financial goals, and (last but not least) the path beyond the pink tax.

How do you define the pink tax?

Why is the pink tax important? The name “pink tax” refers to a common theme in gendered products: the tendency for products marketed by women to be manufactured or packaged in pink. Here’s a fun fact about “blue vs. pink” marketing: historically it was the other way around.

Pink was considered masculine.! This kind of convention shows how arbitrary social conventions can sometimes be.

Nowadays, feminine products are the prettiest, and also the most expensive. Pink taxes are products or services that are priced higher for women than for their male counterparts.

Are pink taxes real?

New York City Department of Consumer Affairs Study examined gender prices for 794 comparable products and found that women cost on average 7% more. A study by California State University found that women spend on average 7% more than men Approximately $1.400 per year Additional costs, fees or equivalents About $2.100 today.

Recently, The Balance did its own research The average price of women's products in the personal care category was found to be 12,7% more. Obviously, the pink tax rates have not increased much.

What cost factors can you expect?

The pink tax is real. However, it can add up to $82.000 over a lifetime. I don't know how you would spend $80.000, but I have some ideas for mine!

How did the pink tax start?

It's decades old. The California Assembly Research Office found that the pink tax was not always applicable in certain cases. Higher cost of a blouse washed by a woman It can be dry cleaned, just like a men's button-down shirt.

Now we have the right answers to your questions about “what is the Pink Tax” and “is it real?” Let’s look at different examples and types of products so you can clearly see which products cost you the most.

Examples of pink taxes showing that women pay more

You can see that the answer to “are pink taxes real?” is a surprising yes. So let’s give examples of pink taxes and which industries are most guilty.

1. Personal care products

In the toiletries aisle you will find explicit pricing, especially on items like soap, shampoo and razors. While these products are similar regardless of gender, there are price differences.

The pink packaging and floral fragrances don't cost any more than the equally stereotypically masculine, dark-colored designs with names like "Tiger Strike" and "Hammerhead Avalanche" (okay, I made those up, but I wouldn't be surprised to see them on the shelves).

Global Data

However Revisit the DCA New York studioFrom page 33 onwards, you'll see that the female versions of these products cost, on average, 4-48% more. The pink tax is a common example you'll see.

2. Toys, clothing and equipment for children

While parents bear the cost of this, gender-based pricing actually begins as early as childhood. The DCA study found that girls' toys cost 11% more, girls' bikes cost 6% more (helmets cost 13%), and clothing ranges from 4% to 13% more… starting with onesies.

Step 1: You come out of the womb. Step 2: You have to pay the pink taxes.

3. Women's clothing

Comparing adult clothing can be a little trickier, as brands can have different styles.

Costs can also vary depending on the materials used and the sizes or cuts produced. The amount of fabric waste produced during production can affect the cost.

DCA researchers have found that only a small part of retail prices is affected by production costs. Because companies can charge for the same clothes, women pay an average of 13% more.

4. Services

You won't just find the pink tax in shops. This gender-based pricing phenomenon extends to other service-based sectors, such as car repair and dry cleaning.

The effect of women talking about cars in the car repair study was smaller. So it's worth brushing up on terminology, or looking for opinions on forums like Reddit: MechanicAdvice This might be worth it.

5. Safe

Our pink tax examples include insurance, unfortunately. Before the passage of the ACA Women's health insurance costs 1,5 times more than men's.Although their plans typically don't include additional benefits, such as maternity care, they are still very affordable.

Now, gender classification is a crime under the Affordable Care Act, but it's something you should keep in mind when they propose changes to health care laws, so you can be fully informed about what you decide to support.

6. All necessary items are subject to sales tax

Finally, let's say hello to Literal Taxes. There are some products that are exempt from sales tax in the United States. Receive food and recipes.

These basic products are not subject to sales tax, so the question is: why should pads and tampons be taxed?

Tampon tax

Dubbed «tampon taxThe practice of taxing feminine hygiene products has been questioned by both consumers and legislators, and rightly so. The products have a non-optional monthly cost that only affects women.

Inequality

The extra 3-10% (depending on the state) can create unnecessary problems Especially important for women living in poverty Those who are already limited in their budget options.

Even lack of accessibility can cause problems School absences among teenagersThis conversation also includes educational inequalities. For state governments with budgets in the billions, these revenues are a relatively small contribution. Yet many states cannot afford these revenues. They have refused to remove the tax Even after they were called to attention.

States are making a positive difference

However, there are major developments in these consumer products. Among them are the following states: Eliminate the tax on tampons.

New York, New Jersey, Massachusetts and other states are included in this list. This victory is significant and other states may follow suit.

Over time, the financial consequences of pink taxes

Fifty cents here and a dollar there may not seem that significant in the register, but we have seen how they can add up over the years. The pink tax makes it harder for women to save money for their everyday needs. This price difference affects their ability to save for the future.

Costs

If you are in debt, the additional costs may be one more thing that stops you from falling into the vicious circle of interest. For women who live paycheck to paycheck, it is much harder to start building an emergency fund.

Missed opportunities

In addition to the initial costs and short-term challenges, it is also worth considering the long-term opportunity costs. Female consumers have less financial flexibility, which makes it difficult for them to take potentially lucrative financial risks. You could start a business, or even own real estate.

impact investing

We've talked about the pink tax figure of $82.000 per lifetime before. However, that number was simply added on. Imagine if this money was invested over all this time.

Well, no one can predict future stock market returns with certainty, unless they are a time traveler or a liar. However, we do have some historical average figures that can help us out. Determine if you are entitled to a return on investment.

After adjusting for inflation and taxes, an investment equivalent to $2.100 a month can earn you more than $500.000 in 40 years. There's no extra zero there; that's half a million dollars!

Needless to say, having that kind of money in your IRA can make retirement a lot more enjoyable (or sooner, if you're ready to move to an island).

Eliminate the pink tax

Now you know what the pink tax is. Are you tired of the pink tax? Are you ready to invest your hard-earned money in better things, like savings and investments? Here are some ways I can help you.

Corporate

Your legislators must support systemic change as the ultimate goal Pink Tax Repeal ActAlthough the law was passed in 2015, it remains contested for price discrimination.

Human

Personally, consumers have the power to decide with their dollars whether or not they want the pink tax removed from women's products. It's a good idea to play a game of calculating price differences while shopping. Also, choose gender-neutral or unmarked products.

She asks for quotes for services like dry cleaning and car repair. Then, she asks a male friend to do it. Then, she compares the scores. From there, you can choose to support businesses that don't engage in gender-discriminatory pricing.

Advertising

You can use your voice. You can contact the company directly or post your results using the hashtags #pinktax. No one likes negative press, and you can help them realize that it's cheaper to adjust their prices than lose sales.

The pink tax is bad news for women's pockets, but you can be part of the change and support a better financial future for everyone, regardless of gender.

Do you know what a pink tax is?

Buy discounted items to avoid gender discrimination. This little thing will save you a lot of money and hopefully reduce your pink tax.

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