Gender Gap Due to Inflation – How Women Earn a Higher Cost of Living | Family Finances


The global inflation crisis is affecting everyone, but not all groups are equally affected, according to World Economic Forum data. Women are especially hard hit.

Not only are men 33.3% more likely than women to be able to keep their salaries in line with inflation in the US, but the prices of women’s products are rising much faster than their male counterparts.

This exacerbates the difficulties women already face with the Pink Tax, widening the price gap between products for each gender and putting a huge strain on women’s budgets.

“The tendency for women to face disproportionate inflationary problems compared to men shows no signs of abating and continues to affect women’s finances, but I am taking steps to mitigate the impact on my own finances. You can also choose to do so,” says Alyssa Krasner Mays, founder of Amplify My Wealth. Is called.

Why is inflation having such a big impact on women?

Global cost data show that women’s products are rising in price faster than men’s. But that’s just part of why the inflation crisis is hitting women so hard. In addition, there are challenges such as persistent wage disparities and differences in spending patterns.

“Women tend to shop more than men, so they naturally have a greater impact on inflation. ,” says Raya Reeves, founder and financial coach of City Girl Savings.

And Mays says it can be difficult to break out of this pattern and put your own financial health first.

“As a woman and a mother, I understand that there are things in my life that I cannot imagine changing. The challenge is that despite what you want to do for others and that as a woman you earn less and are more likely to live longer than men do. It’s about balancing the reality that we’re experiencing disproportionate inflation,” she said.

How to budget when the cost of living rises

So if you earn less than men and spend more to maintain the same quality of life, how do you budget for it and still achieve financial security? Is not it?

“If women don’t stick to budgets, set spending limits, and deliberately fail to make financial decisions when costs are high, they may save less and borrow more. , the impact of poor spending behavior may seem small because the cost of goods goes down, but it opens the door to more spending,” says Reeves.

Now more than ever, it’s important to build solid financial habits. Follow these tips to cope with the high cost of living.

Put your financial future first

Putting yourself first in a system that emphasizes women can feel difficult or unnatural. But doing so is important not only for your own financial success, but also for changing these ongoing trends.

“Put your own financial future ahead of the needs of yourself and those you care about. Support businesses that recognize and support women. And organize and ultimately strengthen your finances.” Please take actionable steps to help,” Mays said.

“In addition to prioritizing needs over wants and strengthening our finances, organizing and strengthening our finances is an important first step in financially transforming our lives,” she added.

According to Reeves, this requires not only an honest look at your current income and expenses, but also dividing your spending into needs and wants.

“Find out how much you actually earn (after taxes and deductions). From there, make sure you have all the necessities you need. This includes housing, food, utilities, and minimum debt. That includes payments, other monthly responsibilities, etc. The amount of income that remains after you’ve considered all your necessities is the rest of the amount you have to work on,” says Reeves.

Create a value-based spending plan

The first step in creating a budget is to identify your values ​​and which categories are most important in your life.

“Thinking about what you value most is a great starting point for any spending plan. Once you’ve chosen what you care most about, see how those values ​​align with your spending, and see what items could reduce your spending and increase your cost of living. You’re more likely to be able to make better adjustments,” Mays says.

find opportunities to reduce spending

Once you have a solid account of your income and expenses, including your most important expenses, you can find ways to cut back.

“When restructuring budgets due to rising costs of living, I typically advise my clients to consider their Discretionary category. This includes limiting takeout and dining in, postponing hair and nail salon visits, and reducing non-essential shopping,” Reeves said. To tell.

In addition, researching alternatives could save money on items subject to the pink tax, Mays said.

Remember to leave room for joy

It’s easy to become frustrated when budgets have to be cut, especially in the face of inequality. Reeves suggests leaving room for things you love so you don’t feel like you’re sacrificing too much.

“To keep your budget realistic, allocating a portion of your leftover income to things that bring you joy can be very effective,” she says. “Once you have something to enjoy life with, you’ll be better able to stick to other budget limits.”

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