The Inflation Gender Gap – How Women Can Budget for a Higher Cost of Living

The Inflation Gender Gap – How Women Can Budget for a Higher Cost of Living The global inflation crisis is hitting women hard but with the right strategy you can still manage your budget.

By Emily Sherman and Barri Segal May 18, 2023, at 9:40 a.m. So, you’re making less money than men and spending more to maintain the same quality of life – how do you budget for that and still achieve financial security? The global inflation crisis is affecting everyone, but data from the World Economic Forum shows it's not impacting all groups proportionally. Women, in particular, are being hit heavily. Not only are men in the U.S. 33.3% more likely than women to have their salaries keep up with inflation, price increases for women’s products are far outpacing men’s. This further exacerbates a struggle women already face with the pink tax, widening the gap between the cost of products geared to each gender and putting significant strain on women’s budgets.

Add this to additional barriers to saving and investing women already face and building a budget that satisfies all your financial needs might seem impossible. Still, experts recommend strategies women can adopt to overcome these challenges. Read: How to Make a Budget – and Stick to It. “While the trend of women facing disproportionate inflationary challenges compared to men shows no signs of letting up and continues to impact women's finances, you can choose to do something to alleviate its impact on your finances,” Alissa Krasner Maizes, founder of Amplify My Wealth, says. Why is Inflation Impacting Women So Heavily? It’s true that women’s products are rising in price faster than men’s, according to global cost data. But that is only part of the reason why the inflation crisis is impacting women so heavily. Additional challenges include an ongoing wage gap and a difference in spending patterns.

“Because women tend to shop more than men, inflation naturally hits harder. Women typically shop on behalf of others (family members, children, partners, etc.), so their purchasing power is higher,” Raya Reaves, founder and finance coach at City Girl Savings, says. And according to Maizes, it can be difficult to disconnect from this pattern and put our own financial wellness first. “As a woman and mom, I understand that there are certain things that I cannot imagine changing in my life, such as always wanting to help others and providing for my children and loved ones in some capacity, regardless of their needs and ages. The challenge is balancing what you want to do for others with the reality that, as a woman, you likely earn less and live longer, yet disproportionately experience more inflation than men,” she says. How to Budget for a Higher Cost of Living

So, you’re making less money than men and spending more to maintain the same quality of life – how do you budget for that and still achieve financial security?

Source: https://money.usnews.com/money/personal-finance/family-finance/articles/the-inflation-gender-gap-how-women-can-budget-for-a-higher-cost-of-living