Are you a beneficiary of the pink tax?

A woman's life isn't easy. The first is the rising cost of living simply for existing as a woman. Dubbed the "pink tax," this unfair price difference 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?

A study by the New York City Department of Consumer Affairs examined gender-based pricing for 794 comparable products and found that women's products cost an average of 7% more. A study by California State University found that women spend an average of 7% more than men. Approximately $1.400 per year. Additional costs, fees, or equivalents. About $2.100 in today's dollars.

Recently, The Balance conducted its own research and found that the average price of women's personal care products is 12,7% higher. Clearly, the pink tax rates haven't 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's Office of Research found that the pink tax wasn't 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

But go back and look at the New York DCA study starting on page 33, and you'll see that the women's versions of these products cost, on average, between 4 and 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 auto repair study was less significant. So it's worth refreshing your terminology, or looking for opinions on forums like Reddit: MechanicAdvice. This might be worthwhile.

5. Safe

Our examples of the pink tax include insurance, unfortunately. Before the passage of the ACA, women's health insurance cost 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 changes to health care laws are proposed, so you can be fully informed about what you choose to support.

6. All necessary items are subject to sales tax

Finally, let's give a shout-out 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 " tax on tampons," the practice of taxing feminine hygiene products has been questioned by both consumers and legislators, and rightly so. These products represent a non-optional monthly cost that disproportionately affects women.

Inequality

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

Even a lack of accessibility can cause problems. School absenteeism among teenage girls is a factor in this discussion, which also includes educational inequalities. For state governments with budgets in the billions, this revenue is a relatively small contribution. However, many states cannot afford this revenue and have refused to eliminate the tax even after being urged to do so.

States are making a positive difference

However, there are some major developments regarding these consumer products. Among them is the following: the state is eliminating 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 accurately predict future stock market returns unless they're a time traveler or a liar. However, we do have some historical averages that can help determine if you're entitled to a return on your 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 . The Pink Tax Repeal Act, while passed in 2015, continues to be challenged 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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