Have you ever considered becoming an entrepreneur and literally shirked at the prospect of putting yourself out there? Do you feel you don’t have the confidence it takes to launch your own entrepreneurial dreams, especially in industries and areas where women are in the minority and unfavored? Are you wondering how to be more confident as a woman entrepreneur?
I remember starting a side hustle a few years back, wondering how in the world the introvert in me would ever find the confidence to start and grow it. Even though I could somewhat hide behind my laptop screen while blogging, I still needed to put myself out there, which was scary to say the least. Fast forward over a decade, I’m still growing and putting myself out there, somehow building the confidence that I believed was severely eluding me when I first started…
In general, men are shown to own three times as many businesses employing people than women. However, in 2021, more businesses were started by women (49%) than by men (42%), mostly as a result of pandemic-related business opportunities. Women were also shown to own more younger businesses than their male counterparts, at the rate of 75% of 15-year old or younger businesses for women and 66% for men. However, despite these significant advances, there is still a notable difference in average annual revenue and funding opportunities between men and women-owned businesses, to the disadvantage of the latter. According to Biz2Credit, women’s businesses earned $199,136 less than men-owned businesses in 2021. On the funding side, while men were approved for 67% of the loans they applied for, women could only achieve about half of this.
With these dismal statistics in mind, how does one muster enough confidence as a woman entrepreneur? Is it even worth the try?
From my own unconventional experience as a side hustler, an introvert, and a multiple minority in the entrepreneurial world, here are a few tidbits from my own experience that may help:
Start with your strengths and desires!
This may be the most unconventional business advice you may have ever received. Much of the business advice out there will recommend that you create and grow a business in a profitable field or industry. While this is valuable advice, it often skips the part where your strengths and desires should also be considered.
What has served me best (and still does) has been to focus on my strengths in areas where I can find the joy, motivation and strength to keep going despite the odds. It’s also what I refer to as my “zone of confidence”.
Focusing on your strengths, your core skills and desires, especially when you’ve already gotten positive results in those areas, will help you develop and cultivate the confidence and resilience to get started and keep going. This is especially important when the going gets tough, and all that’s left most days is the sheer will to keep forging ahead…
Grow slowly and incrementally
In the era of continuous metrics and overnight success, slow, incremental growth is not the most popular business concept out there. Yet, in terms of raising your confidence levels, it may be just what the doctor ordered.
In my own experience, solidifying one area before growing another one has helped me develop the assurance needed to keep going. It may be tempting to give in to the “shiny object syndrome” affecting so many, especially in the online space, trying new tools and gimmicks every other day. However, focusing and developing one key skill and area at a time, may help boost your expertise, thereby increasing your confidence in the process.
Get your numbers straight!
As you could tell from the discouraging statistics above, women-owned businesses, while growing more in recent years, are still lagging behind men-owned businesses in revenues and funding. This is also where many women lose their faith and confidence in starting and growing successful businesses.
As a CPA and consultant, I’ve had the privilege to witness the evolution of some women-owned businesses, many of them plagued by financial inaccuracy and lack of financial confidence. This in turn has significantly reduced their opportunities to go after various sources of funding, and increase their revenues.
Getting clear on your business’s financial goals and objectives, as well as its financial results, can help alleviate some of these doubts. This can impact the business’s revenue generating ability, as well as increase its chances to obtain more funding.
Own your stuff!
With the advent of social media, many women entrepreneurs, and many entrepreneurs in general, are hosting their businesses on online platforms like Instagram or TikTok. However, as has been shown through algorithm changes and technical outages, these may not be as reliable as most may believe. As a matter of fact, many entrepreneurs and creatives have been painfully griping about the loss of revenues and influence they’ve been experiencing on these same social media platforms for the past year or so. Talk about a loss of confidence…
As a woman entrepreneur, the more control you can have of your business, the more confidence and motivation you can muster to continue growing. This can be achieved by actually owning and managing your own business platforms, whether it’s your own blog, website, or physical location.
Avoid the trap of comparison
One of the most precious pieces of business wisdom I’ve gathered over time is to avoid the trap of comparison. There is always going to be a business that is more successful, generates more revenue, has more followers on social media, etc…That in itself is enough to destroy any entrepreneur’s confidence…
While I have certainly succumbed to the temptation to compare my micro enterprise to other solopreneurs, especially in the online space, distancing myself from it has helped boost my confidence levels over time. For me, this means observing some social media cleansing periods, not overly focusing on popular metrics, and developing my own goals and objectives.
Overall, developing a solid sense of confidence as an entrepreneur, whether at the micro-level as a solopreneur or side hustler, or on a larger scale, does not have to be an impossible task. By focusing on your own “zone of confidence”, growing incrementally and avoiding the trap of comparison, you can actually leverage your entrepreneurial venture to boost your sense of confidence.
How are you developing more confidence as a woman entrepreneur?
Most people who know me well know I’m serious about money. I’m an accountant by trade, who also happens to teach accounting, which also means finances are often on my mind. Truthfully, I always had an inkling for it, not just when it became my main field of study and work. I believe I can trace it to my upbringing, being raised in a single parent family home by a single mother who taught me the importance of managing what you have, and managing it well. It later morphed into a desire to never go without, a search for the tangible, palpable security the little girl in me had not been able to find growing up without a father’s presence…This is why it’s so important for me to have a financial sense of direction, especially at the beginning of the year. This year, I am going one step further than setting up my usual financial plan and budget, and actually am setting on the path to creating a financial mission statement for myself and my family…
And this is not at random…As a Black woman, mother, wife, professional, among so many other hats I, like other women, wear, I am all too aware of the financial disparities and challenges faced by women. These challenges not only affect women’s levels of financial literacy, but also their financial well-being, and access to financial support and tools to acquire, develop and generate wealth.
According to the 2022 Survey of Household Economics and Decision-Making, women are 79% less likely to pay their bills on time than their male counterparts (84%). They are also shown to be 52% less likely than men to have sufficient emergency savings to cover three months of expenses than men (at 56%). Lastly, the survey reveals women are 15% more likely to have upped their debt and credit card usage, as opposed to only 12% of men. While the gender wage gap certainly contributes to these statics, increasing childcare costs and the effects of inflation are also notable contributing factors that put women at constant financial risk.
Research also shows there is an acute gender gap in financial literacy explained by household specialization. This occurs when men specialize in financial decisions for the household, while women get confined to other household functions. As a matter of fact, the UBS 2019 Global Investor Watch found that globally, only 23% of women handle long-term financial planning decisions. A majority of women worldwide (57%) keep deferring critical financial decisions to their spouses, with millennial women surprisingly displaying this behavior.
All these reasons (and more) make it not only necessary, but absolutely indispensable for women in particular, to build a solid financial house in order to protect themselves and their families. This is where a financial mission statement goes a step further than a simple financial plan or budget.
A financial mission statement, or wealth mission statement, articulates your unique financial vision, in alignment with your own values, goals and principles, to help you define the steps you need to take to thrive financially. In this sense, it’s not just about following a series of popular, albeit financial guru-approved, rules and regulations. It’s about diving deep into what financially matters to you as a woman, mother, wife, sister and friend, and devise your own path towards the objectives that are uniquely ours.
If, like myself, you are yearning for finances that reflect who you are and what you deem important, here are a few steps that may help to build your financial mission statement:
Articulate your financial vision
Vision is everything. One of my favorite Bible verses is Proverbs 29:18, “Without vision, the people perish.” Often, especially when it comes to finances, we as women tend to adhere to other people’s visions, whether it’s our spouse’s, families’, or whatever financial authority is trending at the moment. Don’t get me wrong, I’m a big Suze Orman fan. However, what I’ve come to understand, is there is a BIG difference between being inspired by someone’s advice, and having one’s own vision.
What is your financial vision? What do you see, in the eye of your mind, happening for you and your family financially in the next year and beyond? Where do you financially see yourself and your loved ones in the next year, the next five or even ten years? Not just in terms of owning the rarest Birkin bag (which can serve as an investment piece, but that’s a discussion for another day), but in terms of your financial house of spending, savings, and investments?
These are crucial questions that do not just enlist your ability to dream about an abundant future. They are also questions that prompt your sub-conscious to envision a financial future reflective of your personality, history, and desires, but also of your self-perceived limitations and traumas.
Lay down your financial values, goals and principles
What do you value when it comes to your finances? What are you household and family values in terms of money? Where is it important for you to spend, save or invest?
Defining what you value as an individual, and together as a family, is a crucial step in refining your sense of financial purpose and direction. For me, tithing and investing in my children’s education are priorities, based on my own sense of values, but also my story and my mindset. What are financial priorities for you and your family?
Decide on your financial actions for the next year
What financial actions will you be taking based on your vision, values and principles? What goals will those actions lead you to? What are the steps that will get you there?
Reflecting on your financial vision and laying down your financial values, goals and principles, are the prelude to deciding on your financial actions for the future. Usually, these decisions come first, at the expensive cost of proper alignment with one’s authentic vision, purpose and values. It is then no wonder that most of our financial goals end up being abandoned after only a few weeks or months…
All in all, building a financial mission statement is a powerful exercise in laying a solid financial foundation against which to pursue goals well aligned with our unique vision and values. It also provides us with the opportunity to reflect on our core principles and what guides us in general, and question some of our core beliefs as well. For me, it’s been a revelatory process of self-discovery and self-realignment, a journey of sorts into the paradigms I’ve been upholding about money. After all, it’s deeper than money, it’s about who we are, what we believe in and where we are going…
Have you ever built your own financial mission statement?
I remember discussing my very first paid speaking engagement and being unable to even utter a price when asked. Not only did I not know what to ask for, I also did not even have the courage and personal power to determine what I was worth. As a baby entrepreneur, I had to learn what negotiation meant for women in general and women entrepreneurs in particular, and it went beyond just setting a price or rate.
In the world of entrepreneurship, negotiation is a critical skill that can spell the difference between success and stagnation. For women entrepreneurs, navigating this terrain comes with its own unique challenges. Women entrepreneurs often face distinct hurdles in their pursuit of success. Gender biases, stereotypes, and historical imbalances can all play a role in negotiations. However, with the right strategies and mindset, these obstacles can be transformed into opportunities.
1. Cultivate Confidence
Confidence is the bedrock of successful negotiation. Self-assured entrepreneurs are more likely to secure favorable deals. As a woman entrepreneur, believe in your abilities, your business, and your vision. Cultivate self-confidence through continuous learning, networking, and acknowledging your achievements.
2. Master Your Pitch
Your ability to pitch your business idea or product effectively is paramount. Craft a compelling narrative that highlights your unique value proposition. Emphasize how your solution addresses a specific problem or need in the market. Practice your pitch until it flows naturally and persuasively.
3. Research Thoroughly
In negotiation, knowledge is power. Conduct comprehensive research on your potential partners, investors, or clients. Understand their needs, preferences, and pain points. Having data-driven insights at your fingertips will bolster your negotiating position.
4. Embrace Collaborative Negotiation
Strive for win-win outcomes in negotiations. Collaborative negotiation fosters long-term relationships and builds trust. Seek mutually beneficial solutions that align with the interests of all parties involved. This approach not only enhances your reputation but also opens doors to future opportunities.
5. Network Strategically
Networking is an invaluable resource for women entrepreneurs. Attend industry events, join entrepreneurial groups, and connect with mentors and like-minded peers. Building a strong network can provide support, advice, and potential collaborators or investors.
6. Overcome Fear of Rejection
Rejection is an inherent part of entrepreneurship and negotiation. Don’t let the fear of rejection deter you. Every ‘no’ brings you one step closer to a ‘yes.’ Embrace rejection as a learning opportunity and a chance to refine your pitch and approach.
7. Build Resilience
Entrepreneurship can be a rollercoaster ride with highs and lows. Cultivate resilience to weather setbacks and uncertainties. Learn from failures, adapt to changing circumstances, and persevere. Resilience is a key trait of successful entrepreneurs.
8. Develop Active Listening Skills
Effective negotiation requires active listening. Pay close attention to the concerns, needs, and objectives of the other party. By understanding their perspective, you can tailor your proposals to better meet their expectations, increasing the likelihood of a successful outcome.
9. Leverage Your Unique Strengths
Women often bring distinctive qualities to negotiations, such as empathy, intuition, and relationship-building skills. Embrace these strengths as assets that can enhance your negotiation strategies. Show empathy by understanding the needs of your negotiation counterpart, and use your intuition to gauge the dynamics of the negotiation.
10. Practice Negotiation Scenarios
Role-playing negotiation scenarios can sharpen your skills and boost your confidence. Engage in mock negotiations with mentors, peers, or advisors to refine your approach. This practice will help you anticipate challenges and adapt to various negotiation styles.
11. Seek Professional Guidance
Consider seeking the advice of negotiation experts or consultants, especially for high-stakes negotiations. They can provide invaluable insights and strategies to help you secure favorable deals.
12. Be Prepared to Walk Away
Sometimes, the best negotiation tactic is the willingness to walk away from a deal that doesn’t align with your business objectives. Knowing your limits and being ready to decline an unfavorable offer can strengthen your position and lead to better opportunities.
13. Document Agreements
Once a negotiation is successful, ensure that all agreements are documented in writing. Having clear, written contracts helps prevent misunderstandings and disputes down the road.
Negotiation is a core skill for women entrepreneurs aiming to thrive in the world of business. By cultivating confidence, mastering the art of pitching, and embracing a collaborative approach, women entrepreneurs can overcome gender-related challenges and secure the deals and partnerships that drive their businesses forward. Remember that every negotiation is an opportunity for growth, learning, and building a brighter future for your entrepreneurial endeavors.
What challenges are you facing when it comes to negotiating as a woman entrepreneur?
I remember seeing women, many with babies hanging at their hips or suckling at their breasts, at the corners of sandy streets back home in Senegal, selling one product or another under the hot sun, from crackling roasted peanuts to fresh sorrel juice. At the time, I did not even know what the concept of entrepreneurship was. I just instinctively knew the important role these women were playing in the fabric of our society. I knew behind many of their yellowed smiles and inviting and astute banter, hid countless economic and social hardships that the meager revenue from their sporadic sales barely alleviated. These were the first women entrepreneurs I was ever exposed to. Every time I think about entrepreneurship, these are the women I think about…
Yet when I started my own entrepreneurial journey, as an immigrant and a career woman side hustling my way into business, I somehow forgot about these women…I drowned, consciously or not, into the noise of the world around me, giving into salesy gimmicks and marketing hoaxes. So do so many of us out there…Until I’ve had a wakeup call lately, and remembered the women of my childhood, selling at the corners of sandy streets and alleyways, heartily bantering, authentically sharing from the heart to feed their families…Every time I have to get back to business, literally and figuratively, I intentionally pause and remember these women. I remember their hearts, their art, their determination, their drive. I remember their signature marketing anchored in relentless humanity, away from marketing gimmicks and sales ploys…
According to the 2021/2022 Global Entrepreneurship Monitor (GEM) Women’s Entrepreneurship Report, women constitute two out of every five early-stage entrepreneurs active on a global scale. Women are also one in three high-growth entrepreneurs, and one in three innovation entrepreneurs focusing on national and international markets. In general, women in lower-income countries tend to report intentions to start a business at higher rates than women in high-income countries, with the Dominican Republic showing the highest startup rate for women (43.7% vs.41.7% for men). They are also found to exit businesses at lower rates than their male counterparts (3.6% for women vs. 4.4% for men), but this may also be impacted by their lower rates of business entry.
Unfortunately, the pandemic altered these statistics, with women’s entrepreneurial intentions decreasing from 19.1% to 16.7% in 2021 mostly in low-income countries. Women also unfortunately suffered an increase in business exit rates during the COVID-19 pandemic (from 2.9% to 3.6%), while men observed higher rates (from 3.5% to 4.4%). Despite this, almost half of women entrepreneurs at the early stage recognized new business opportunities created by the pandemic, demonstrating a similar alertness to new opportunities and ability to pivot as their male counterparts.
Overall, on a global scale, women entrepreneurs show a high level of activity in growth and high innovation businesses with a focus on national and international markets. While there are few gender-related differences in education and age, women entrepreneurs are generally less affluent than their male counterparts, except in low income countries. Most of the notable differences between men and women entrepreneurs are industry and business size-related, with fewer women with businesses in Information, Computer and Technology (2.7% of women vs. 4.7% of men) and with employees. In terms of stereotypical gendered perceptions around entrepreneurship, the largest gender divide was observed around access to investments, mostly in low income countries.
As a woman and/or mom, if you’re thinking of reconnecting with your entrepreneurial self, whether you’re getting back to your business or side hustle, or are looking for more ownership in your career, this is also your reminder, and encouragement, to do so:
Identify needs and problems
Women and moms have long been attuned to the needs and issues around them, which is a crucial factor in entrepreneurship. It is this attunement to the needs and issues around them, from their own financial needs and those of their families and communities, to gaps in the society around them, that fuels their aspirations to start businesses.
In the same way, identifying the needs and problems around you, whether it’s at work or in your own business or side hustle, is essential to reconnecting with the entrepreneur in you.
What are the needs in your team at work? In the classroom you teach? What are the problems you are experiencing in your life?
As lower business exit rates show the resiliency of women entrepreneurs, it also outlines one of the most crucial elements of women’s entrepreneurship. It’s the ability to stick it out despite obstacles, including lack of funding, damaging stereotypes and scarce support, that keeps women’s businesses afloat and thriving.
For me, the beautiful, resilient and creative women selling roasted peanuts, fresh sorrel juice and so many other products at the corners of sandy streets and alleyways in my hometown of Dakar, Senegal, will always be the picture of entrepreneurship. Their ability to identify problems and needs, to recognize new opportunities in the midst of crisis, and to stick it out in unwelcoming environments lacking the resources they need, will always exemplify the essence of what it means to be an entrepreneur. As a woman and mom, these are the values that help me reconnect with the entrepreneur in me, in my career and business. I hope these are also the values you use to reconnect to your own entrepreneurial side, at work and in business.
I don’t know about you, but the end of the summer is always a bit of a bittersweet moment for me. The (somewhat) sweet and lazy days of summer, peppered with kids’ chaos, traveling snafus and fridges emptying at the speed of the light, quickly give room to bitter and busier days, along with more intense work, business and school schedules. What it also spells for many, if not most working women and moms, is a serious financial wake-up call.
As a result, most working women and moms find themselves running on empty at the end of the summer, needing to financially recover for the last three months of pay cuts, expensive vacations and outrageous childcare and camp options. Here are a few tips and strategies that may help in the process, and lay the foundation for future financial balance and success:
Pause to reflect and realign financially
Reflect and Reevaluate Your Financial Goals
Before going into panic mode or jumping into financial recovery mode, pause and take some time for reflection and realignment around your summer spending and financial goals:
What were the financial goals you set at the beginning of the year, if any?
Did your summer spending get out of control during your vacation?
Or did you manage to stick to your budget?
What is your financial vision going forward?
Assessing your finances against your goals will not only help you understand where you are financially; it will also help you understand your spending habits and identify areas for improvement.
2.Realign Your Budget for Success
Now that you’ve reflected on your spending and your goals, it’s time to get into financial realignment mode:
What discretionary expenses can be trimmed down?
Can the reduced expenses be allocated towards your financial goals, to build an emergency fund, pay off debt, or investing?
Building a budget will help guide your recovery journey and realign yourself financially. Tools like Mint, YNAB (You Need A Budget), and PocketGuard empower you to track your expenses, set financial goals, and monitor your progress. These apps sync with your bank accounts, categorize your spending, and provide insights into areas where you can cut back. This approach allows you to regain control of your finances and allocate funds towards recovery.
3. Navigate Work-Life Integration during the back-to-school season
Effectively integrating your career and family life is crucial for both your family and personal well-being and your financial well-being. This is where the back-to-school season is a great opportunity to create a structured routine that allows you to manage your work commitments, be present with your family and reduce your expenses through better planning and time management.
Take financial action!
4. Strategically tackle your debt!
TransUnion’s 2023 Spring and Summer 2023 Travel Report shows 57% of survey respondents planned to use credit card debt to travel. If you’re among those who accumulated debt over the summer, it’s time to take action:
Prioritize paying off high-interest debt to save money in the long run.
Consider consolidating your debt!
Negotiate with creditors to make your debt more manageable.
Freeing yourself from debt is one of the most important steps you can take towards thriving financially.
5. Explore New Income Streams!
It’s one thing to tackle your debt and cut expenses as part of realigning your budget. It’s also about increasing your income through diversifying your income streams. As a working woman and mom, tapping into your formal and informal skills is invaluable, from freelancing, consulting, or starting a side hustle.
6. Revamp Your Savings Strategy
As summer fades, it’s an ideal time to revisit your savings strategy:
Have a clear purpose for your savings so you can motivate to continue setting money aside.
Consider setting up automatic transfers to your savings accounts to make saving a habit.
Create specific savings goals, whether it’s for a family vacation, education funds, or retirement.
Grow forward!
7. Invest in Your Financial Education
Financial education will not only allow you to get out of the summer financial pit you may be in. It will also help you empower yourself to grow your financial wealth:
Take advantage of resources such as online courses, books, and workshops to enhance your financial literacy. Websites like Udemy, Coursera, and LinkedIn Learning provide a range of courses suitable for various skill levels. Equipping yourself with the knowledge and tools to make informed financial decisions is an integral part of post-summer financial recovery.
Learn about investments, savings vehicles, and tax strategies will help you make informed decisions that align with your long-term goals.
8. Cultivate mindfulness and self-care.
Financial recovery can be a journey of ups and downs. Practicing mindfulness and self-care is essential to maintaining a positive mindset throughout the process. Engage in activities that bring you joy and reduce stress, whether it’s yoga, meditation, or spending quality time with loved ones.
9. Network and Support
Connect with other working women and moms who are also on the path to financial thriving. Join online communities, attend networking events, and share your experiences. The support and insights you gain from like-minded individuals can be invaluable in staying motivated and accountable.
All in all, transitioning from vacation vibes to financial thrive might seem intimidating and impossible to achieve. However, with the right strategies and mindset, you can make significant strides towards your financial goals. Remember, post-summer financial recovery is a journey, and each step you take brings you closer to a more secure and empowered future as a successful working woman and mom.
Now your turn, what strategies are you using to recover financially from the summer months?
If you’ve ever thought of taking control of your finances as a working woman and mom, Suze Orman’s “Women and Money” book is a must-read. This revised and improved edition from her 2007 original masterpiece certainly does not disappoint when it comes to establishing, or re-establishing for that matter, a healthy relationship with your money. I know it certainly helped me…
I’ve had the earlier version of this book on my shelf for many years, and have only recently decided to dig into it, especially when starting the new year. As my word for the year is “consistency”, I resolved to apply more consistency to all the areas of my life, including my finances. When I noted this “oldie but goodie” book had been recently revised and edited, I couldn’t help but order it. What I discovered as I perused its pages in just a few days was nothing short of a financial eye opener…
As a working woman and mom, with training in accounting at that, I’ve always known, in theory, how important it is to have a good handle on your money. As much as I could, I practiced applying sensible rules to managing my money, from budgeting to saving and even dabbling intoinvesting. What I didn’t do as much of, is to take some time to pause and reflect on my relationship, past, present and future, with money. And this is exactly what this book made me do…
In the book, Suze, who in my head I picture as my financial big sis, first starts by discussing how we have been relating to money as women since the dawn of times. She accurately points to the fact that so many of us, even as educated and professionally successful as we may be, seem to experience an inner resistance to dealing with our own money. This ties back to the fact that for the longest time, women have been conditioned to defer money matters to the male figures around them, from parental figures to spouses. As a result, there has been a dissociation between women’s mindsets and money.
Reading this, and even though I was raised by a single mom, I could identify with this inner resistance, this sense that even as an educated, ambitious woman, I tend to experience a lack of closeness to and clarity about my money. The more I turned the pages of this book, the more I could relate my own experience with money to the fear that many, if not most of us, experience when it comes to being free and decisive about our personal and financial futures. Instead, we often end up treating our money as we treat ourselves, with the same fear to displease others, the same fear to not belong or fit in, or that to be rejected…It’s also the same fear that prompts us to not ask for a raise at work, sell our services for less than they’re worth, and allow our significant others to mismanage and abuse our own money… It’s the same fear that basically, as Suze puts it, prompts us to put “ourselves for sale”…
Confirming that, like so many women, I need to take a good look at my relationship with money, opened my eyes, especially as a woman in my 40’s. What this book also allowed me to realize is how important it is to use time and knowledge to our advantage to build a secure financial, and ultimately, personal future. Tips such as living below our means in order to boost our retirement savings, investing in life insurance, preparing to support kids in college through 529 plans, and setting up key documents such as wills and revocable trusts, are a much-needed wake-up call for all women and mothers. The importance of planning our financial futures early, not only for ourselves, but most importantly for our loved ones, is often ignored at the expense of pleasing others and surviving. What we often do not realize is that not taking care of our financial health does not only impact us, but our families and communities in the long run.
Overall, this is a book I highly recommend and consider a must-read for all women. More than financial tips, it urges us to revisit our relationship with ourselves and money, and set ourselves and loved ones for success. If anything, taking care of our money is a gift to ourselves and others around us.
Although it is not a tax, the “pink tax” refers to a pricing structure favoring women’s goods and services. According to BALANCE, women pay around 13 percent more for personal care items like body wash, shampoo, lotions, and perfume than men. Even razors targeted at women were 9 percent more expensive. Pink is a common hue for packaging products for women , thus the term “pink tax.”
According to the U.S. Census Bureau, full-time American women earn 83 cents for every dollar earned by males. Women have been impacted by this discrepancy all of their lives, especially women of color, from the beginning of their professions until retirement. Women also earn less in Social Security and pensions due to lower lifetime incomes than males. This is compounded by the fact women are expected to pay much more for identical products during their lifetimes than males due to lower salaries and higher expenditures on personal care items.
As a result, women tend to make less money overall due to the gender wage gap, yet still pay more than their male counterparts for the same products due to the pink tax. The fact that women often live longer than males adds an even heavier weight to these statistics.
Indeed, the average lifespan for American women is 80.5 years compared to 75 years for men. As such, women are indeed being paid less and charged more. Additionally, they also routinely endure more significant levels of stress, anxiety, social inequity, and lower income than men. This creates massive problems for women, as they end up having fewer savings to pay off debt or build emergency savings.
Another compounding factor of this blatant inequity is that while men tend to accumulate more debt than women, their financial means allow them to take prompt action to pay off debt through debt consolidation or any other debt relief options. Yet, the same thing can’t be said about women who tend to have less savings and need to be more careful about their finances and tax.
The Pink Tax Repeal Act, which “prohibits the selling of equivalent products or services that are charged differently depending on gender,” was reintroduced by Rep. Jackie Speier in June 2021. Since reopening the dialogue, some states have started campaigns to eliminate discriminatory taxes. Twenty-four states have abolished the luxury tax on products used for period care. Gender-based pricing in services like dry cleaning and hair treatment is prohibited in New York City, Miami Dade County in Florida, and California. However, these states may charge higher fees if the service demands more significant time, effort, or expense.
How to avoid paying too much on pink tax
Although the pink tax and inflation won’t go away soon, women may still take action to avoid paying too much on certain products. After all, a penny saved is a penny earned. Here are a few ways to avoid the pink tax:
Purchase gender-neutral goods
Depending on how much you favor nicely curved pink razors or flowery-scented deodorants, as well as how much math you have the time and energy to do when shopping at CVS after work, this may be simpler in principle than in practice. Since men’s and women’s items sometimes come in different sizes, you can’t always just compare costs. Instead, you should calculate the prices per ounce if it is not already stated and compare these.
Consider purchasing products that don’t require two different versions—one for men and one for women—such as shampoos, soaps, and razors. There are also several unscented men’s or gender-neutral bath products available on the market if you don’t want to “smell like a guy.”
Even certain perfumed goods for guys might appeal to ladies. Similar items are subject to the “pink tax,” although occasionally, brand or variety has a more significant impact on price. Many female-focused online merchants also provide pink tax-free personal-care goods via subscription programs if you’d rather stay with feminine alternatives. You may reduce pink tax costs with this method.
Purchase garments that don’t require dry cleaning
Purchase clothing that can be machine-washed, hand-washed, and line-dried, such as no-iron blouses. Even in states like California or Washington, DC, where it is illegal to discriminate against customers based on gender at establishments like hair salons or dry cleaners, you will still be charged extra if you want your long hair trimmed or a nice shirt cleaned.
However, it certainly isn’t easy to find apparel that is initially less expensive, especially if you’re plus-size. There is also limited recourse you have to stop certain shops from charging more for women’s clothing than men’s, other than to protest when you notice it happening.
Purchase reusable menstrual supplies
One of the most sinister aspects of the “pink tax” is that it forces women to purchase goods that men don’t need at higher prices, such as sanitary supplies for instance. While shops or manufacturers cannot legally be held responsible for this disparity, there certainly is a push out there to level the playing field in this regard. Indeed, there is a campaign to make menstruation products free for women, as well as a movement to outlaw sales taxes on tampons as they discriminate against women.
In the meantime, you may save money by utilizing reusable products like the Diva Cup, sea sponge tampons, reusable pads, or Thinx period underwear. In addition to being more environmentally friendly than single-use items, some of these goods could also be healthier to use.
Reduce your use of pricey makeup
This is likely something you already do if you feel at ease doing it. It’s also another example of how gender standards cost women more than males.
Complain against discrimination
Speak up if you see a particular manufacturer or merchant attempting to impose absurd gender pricing on unaware customers! Make a call to the corporate office or the manager. Post a review of the company on social media, contact the consumer protection office in your area, and inform your friends.
In practice, it could be more challenging to outlaw gender-based pricing for goods than services since so many variables are at play, such as packaging and marketing variations, that are acceptable justifications for corporations to charge more. Yet, businesses may change or modify some of their practices if customers cease purchasing particular goods or protest.
Develop greater discernment
It also helps being informed about price discrepancies, and going above and above to locate the most significant goods for the money, regardless of packaging. Speaking up if they notice unfair pricing is another alternative. A powerful way to voice dissatisfaction is to complain on social media, in consumer groups, to local lawmakers, and to the business as well. Consumer behavior can provide manufacturers with valuable information.
When shopping, check if there is a pricing difference between the women’s and men’s versions. If there is, check if the quantity and composition are similar. Take a photo of both goods and include the hashtag #AxThePinkTax if they are identical.
Conclusion
It’s important to remember that the pink tax is just one example of how women can be unfairly disadvantaged in the marketplace. By being aware of these issues and addressing them, we can work towards a more equitable society for everyone. It’s high time women set concrete financial goals and work on them.
Author Bio: Attorney Loretta Kilday has more than 36 years of litigation and transactional experience, specializing in business, collection, and family law. She frequently writes on various financial and legal matters. She is a graduate of DePaul University with a Juris Doctor degree and a spokesperson for Debt Consolidation Care (DebtCC) online debt relief forum. Please connect with her on LinkedIn for further information.
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