As Seen in Rung for Women: Pride Month 2020 Amplifies the Financial Challenges LGBT Americans Face
This year COVID-19 — and its disproportionate impact on gay, lesbian, bisexual and transgender (LGBT) communities — highlights LGBT financial concerns that are often overlooked. During the best of times, LGBT people, especial transgender and gender nonconforming people, face higher rates of poverty and unemployment than the general population. The pandemic has only widened this gap. In a recent survey, the Human Rights Campaign found that 17% of LGBT people lost their jobs because of COVID-19, compared with 13% of non-LGBT people. The report also found that one-third of LGBT people had their hours reduced because of COVID-19, compared with one-fifth of non-LGBT people surveyed. Pride Month offers us all a chance to think about how financial wellness conversations can be more inclusive of queer experiences. Here are 3 examples of unique barriers LGBT communities face to building long term financial wellness:
1. Saving is both harder and more important for LGBT Americans
While 35% of LGBT adults said they could depend on family and friends for financial support before coming out, only 20% of LGBT adults said they could still depend on family and friends for support afterwards. Living in a way that embraces your gender identity and/or sexuality can often come with financial consequences. For many, this includes sacrificing the kinds of financial support cisgender/transexual people usually don’t think about losing, like moving back in with parents or having family help cover college expenses. Because of this, building a healthy emergency fund is key for LGBT people looking to achieve financial security. Saving is also important for achieving long term goals like retirement (LGBT retirees are twice as likely to live in poverty than their non-LGBT peers), as well as other needs like paying for gender affirming medical care. Unfortunately, because of depressed wages and pervasive discrimination, this is easier said than done.
