Being part of the LGBTQ+ community comes with social, political and financial challenges.
From finding affordable housing to paying for health care, queer individuals and families often struggle more than their cisgender, straight counterparts. When you factor in the costs of having children and other family expenses, a clear disparity emerges.
There has been improvement over the years in policy protecting employment equity for LGBTQ+ people, but queer families should factor in several costs to their budgets to ensure they can maintain financial security.
[Read: How to Create and Maintain a Family Budget.]
Higher Costs for LGBTQ+ Families
It seems you can find financial challenges faced by LGBTQ+ families wherever you turn.
The Census Bureau published a study in 2021 showing LGBTQ+ adults were more likely to face food insecurity and lost employment income in the wake of the pandemic; KFF found that more LGBTQ+ individuals are living with chronic health conditions or disabilities that could lead to higher costs of care; and the Family Equality council found that LGBTQ+ parents have a greater financial barrier to parenthood.
It’s clear that to live a financially secure life as an LGBTQ+ person, you’ll need to budget for more costs than some other communities do.
Some particular costs to budget for include those for alternatives to natural childbirth like surrogacy, IVF and adoption, gender-affirming health care, legal fees for family planning and a higher cost of living in safe locations, according to former financial influencer Carmen Perez.
[Related:Financial Security: What Does It Actually Mean?]
Here are four costs that might prove particularly challenging for LFBTQ+ families:
1. Health Care
Health care is becoming increasingly difficult for anyone to afford, but queer families might face even more costs.
For one, LGBTQ+ people, especially transgender individuals, are much more likely to need mental health care services, according to the American Psychiatric Association. And mental health care tailored to LGBTQ+ people can be more difficult to find.
Similarly, if you or a member of your family is in need of gender-affirming health care, from surgery to hormone replacement therapy, that can be a significant additional cost.
2. Rent
Safety is an ongoing concern for all LGBTQ+ people. To protect their families, many queer people might opt to live in an urban area, but with this comes a higher cost of living, especially for housing.
Obtaining affordable housing is already a challenge many LGBTQ+ people face, according to a study from Achieve Lending, but when the market in which you’re shopping is already more expensive, it becomes even more difficult to find a home you can afford.
3. Family Planning
Becoming a parent is always expensive, but LGBTQ+ parents are more likely to face higher costs to get there. Many queer couples have to take a nontraditional route to parenthood, whether through IVF, adoption or surrogacy, all of which come with hefty price tags.
[Read: How Much Does It Cost to Raise a Child?]
“My wife and I were not expecting to do IVF, but ultimately that’s the route we had to take. It was extremely expensive, but we managed to do three rounds by using a portion of our savings and we worked with a provider that understood the nuances of same-sex family planning and how to navigate the health care billing space in the most cost effective way possible,” Perez says.
4. Borrowing
The Achieve Lending study also found that LGBTQ+ consumers frequently faced difficulties getting approved for a mortgage or car loan. Whether due to financial constraints or direct discrimination by financial institutions, it’s still a reality that queer families should be prepared to face these challenges.
How to Budget for These Costs of Living
“Adding these additional costs to a budget can feel daunting, but they are doable if a person can take a long-term planning approach to their goals,” Perez says.
To accommodate for a higher cost of living associated with these challenges, follow these tips:
— Seek providers that cater to the LGBTQ+ community. “Shop around for providers that not only specifically cater to the LGBTQ+ community but also make their services accessible via various financing options like installment plans, etc,” Perez says.
— Set up a savings account for your particular goals. If you hope to start a family via adoption or surrogacy or move to a more expensive area, setting up a savings account specifically for that goal can help you prioritize it.
— Bulk up your emergency savings. Health care costs — both physical and mental — often hit when you least expect them. Having a solid emergency fund is a critical tool for weathering these storms.
— Find ways to increase your income. You have several options for bringing in some extra cash to help cover additional costs. “[Ask] for a raise or [take]) on a side hustle for extra income in order to reach (your) financial goal faster,” Perez says.
— Support policy addressing inequities. While these tips can help you better manage your personal situation, they don’t address the underlying causes that account for these higher costs. In addition to prioritizing your own financial security, consider supporting nonprofit organizations and government policies that directly address financial inequities faced by the queer community.
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Financial Planning for LGBTQ+ Families originally appeared on usnews.com
Update 08/02/24: This story was published at an earlier date and has been updated with new information.
