LGBT Finances: 5 Financial Factors that Impact the LGBT Community
Financial issues can affect anyone and everyone. While many of today’s financial concerns affect the LGBT community the same as everyone else, LGBT Americans can also face another set of additional issues that can pose obstacles to one’s financial wellness and planning.
In this article, we will briefly cover 5 financial concerns that the LGBTQIA+ community may face:
Family Planning
Medical Costs / Health Insurance
Lifestyle Costs
Estate Planning
Workplace & Housing Policies
Family Planning (or Lack of)
Whether you’re part of the LGBTQ+ community or straight, it costs a lot of money to raise a child, but it’s also very expensive to have one in the first place. LGBTQ+ couples may have to plan differently if they want to have children, but the price of parenthood is high. From exploring foster care options, adoption, surrogates, and fertility treatments, each path towards parenthood comes with its own set of challenges and is often a very lengthy process.
While 1 in 8 couples in the United States struggle with infertility, having to overcome the financial burden that comes with planning for a child is an added obstacle. In New York State, new legislation requires insurance providers to provide coverage for fertility treatments, regardless of a patient’s sexual orientation or gender identity. This meant that previously, heterosexual couples were already offered coverage for fertility treatments, like IVF, but LGBTQ+ couples could have been denied and forced to overcome high medical costs. Now, New Yorkers can be expected to have their insurance providers cover same-sex family building without discrimination (Gayparentstobe.com). This is only an example of the discrepancies that an LGTBQ couple can face in comparison to other couples.
LGBTQ+ and the cost of starting a family.
Via: CNBC
But it’s important to note that not all LGBTQ++ couples may want children and this decision plays a just as important part in their lives. Assuming one becomes part of the DINK, or double income - no kids, community, couples can now have more money for other things and priorities in their life -- from travel, to saving for a home, to taking the time to advance one’s careers and other passions. Not having children is also a big financial decision that allows oneself to put their money elsewhere.
If you are interested in reading a little more about LGBTQ+ fertility journeys, take a look at Refinery29’s “The Hidden Costs of Starting A Family When Queer”.
Medical Costs / Health Insurance
As someone that is heterosexual cisgender woman, my concerns with medical costs dwindle down to my employer’s health insurance plan and knowing that I can probably receive coverage for a myriad of issues. However, the LGTBQ community can face other health care concerns that can put a hole in your pocket on top of navigating the complicated healthcare system. Here a variety of medical expenses that may be an additional cost:
Gender-affirming Care or Transgender Costs
Gender-affirming care (from surgery, hormone therapy,, and more) can be pertinent to how a person may align their bodies with their respective gender identity. Oftentimes, health care associated with gender transition is often interpreted as cosmetic, resulting in many insurance companies not covering them. Trans-related surgeries can cost thousands of dollars, so gaps in insurance coverage leave much of the LGBTQ+ community with minimal options -- either face the financial brunt and debt or forego treatment that can exacerbate gender dysmorphia. Getting the right care can help reduce the emotional distress of gender dysmorphia, but many individuals simply cannot get treated because they cannot afford it (BusinessInsider). Not having the financial means or support to go through with medical procedures presents a huge risk to individuals. Some examples of medical costs could include hormone replacement therapy (HRT), breast augmentation, bilateral mastectomy, facial feminization or masculinization.
HIV Treatment
HIV (human immunodeficiency virus) is a virus that attacks the body’s immune system and if not treated can lead to AIDS (acquired immunodeficiency syndrome). Reducing the risk of HIV transmission is very important. Contrary to the stigma and misinformation widespread in the 1980s, HIV cannot be transmitted by air or water; saliva, sweat, kissing; insects; and sharing food or drinks. In short, for those at risk for HIV, an individual should seek pre-exposure prophylaxis (PrEP) (CDC). If one does have HIV, they can receive care via antiretroviral therapy (ART). Like other ongoing treatment and care, it can be quite expensive, especially without insurance.
Mental Health Costs
It is no surprise that getting the right care for one’s mental health can be an additional expense in one’s wallet. Not only does one have to find the right therapist that fits the needs of an LGBTQ+ individual in the first place, but they also need to navigate the costs of obtaining mental health resources. Many workplace policies and benefits packages are still in the process of developing worthwhile resources and programs regarding mental wellness.
LGBTQ+ and access to healthcare.
Via: BoardVitals.com
Lifestyle Costs
Individuals may feel more comfortable living their true selves in more progressive areas or cities, but often these cities come with a higher cost of living. As a result, LGBTQ+ individuals may have to deal with higher lifestyle costs as a result of their sexual orientation or gender identity.
There are additional lifestyle costs that can come associated with living in a city, but there are also other personal costs that can leave a hole in your pocket. For example, another lifestyle cost could be associated with gender-affirming care, like the idea of having to buy a new wardrobe to fit one’s gender identity. New clothes for after surgery or in general can be costly. Buying makeup, getting your hair done, or hair removal can also be expensive. These are just a few instances of other costs that could build up.
Estate Planning
Estate planning is the preparation of steps to take once you pass away, including instructions on what you want to pass on, who you want to give it to, and when someone should receive it. It’s not an easy discussion, but a pertinent one to have to figure out your financial affairs ahead of time. It’s not just for retirees, as we will never know what day will be our last. Good estate planning helps minimize the loss of time and assets and eliminates confusion. Having a will or living trust helps organize beneficiary designations. So why does the LGBTQ+ community have a particular concern with estate planning?
While estate planning is for everyone, it can become complicated very quickly. “Obergefell v. Hodges, .. “A Pew Research Survey shows that four in ten LGBTQ+ adults have been rejected by a close family member or friend due to their sexual orientation, which can have ramifications on their estate planning.” This means that same-sex couples’ estate plans could be more susceptible to damage by unsupportive family members - from having their wills contested to custody battles over non-biological children (Wealth Enhancement Group).
Workplace and Housing Policies
Homophobia and discrimination policies are still a major factor in where individuals may choose to live, work, and even retire, says David Rae, a certified financial planner in Los Angeles who serves LGBT clients (Creditcard.com). Something that many heterosexual or cisgender individals take for granted is how their employer may view them in the workplace on the basis of their sexual orientation or gender identity. Discrimination in the workplace can result in high unemployment rates for the LGBTQ+ community. While there are many states that protect workers by local laws, there are still many states that do not provide full protection from discrimination. The Equality Act amends the existing Civil Rights Act of 1964 to include additional non-discrimination policies for LGBTQ+ people but it has unfortunately been up in the air - as conservative values, religious exemptions, ministrial exemptions muddy political decisions (Human Rights Campaign). Workplace uncertainty poses a huge risk for LGBTQ+ individuals, as job security contributes to our physical, mental, and financial wellbeing.
LGBT Homeownership by Location
Via: RealTrends.com
Similarly, LGTBQ individuals can face discrimination when they are trying to rent or buy a home, including sexual orientation housing discrimination and identity/expression housing discrimination (US Department of Housing and Urban Development). Again, while there are many state and local laws that prohibit housing discrimination, often LGTBQ individuals still encounter issues in accessing affordable housing, finding secure housing and/or homeless shelters and services, and finding the right resources for other housing needs (like getting a mortgage). Whether it’s navigating the workforce or housing market, LGTBQ individuals may need to dig a little deeper to secure themselves.
LGBT Finances: 5 Financial Factors that Impact the LGBT Community
Photo by Isi Parente on Unsplash
