Financial Challenges Facing the LGBTQ Community

by James Fitzsimmons

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Numerous financial challenges confront the LGBTQ community in areas such as housing, medical care, work environment, and the general cost of living. And these challenges all bear a common thread: discrimination.

In the world of housing, though twenty-four states now outlaw discrimination based on sexual orientation or gender identity (1), there's still plenty of inequity. Some property managers look disparagingly on applicants with same-sex spouses or credit histories that show gender name changes. When same-sex couples apply for a mortgage, they are 73% more likely to be denied a loan than different-sex couples with similar finances, and if approved, may be charged .2% more in interest and fees (2). Experts recommend using banks that treat LGBTQ customers fairly (3) and, when necessary, attorneys that handle gender and sex-orientation discrimination cases (4).

Health care presents special challenges. A 2022 source estimates the cost of transgender surgeries as high as $100,000 with continuing care and hormone therapy ranging from $25,000 to $75,000 (5). And these costs add pressure on top of this sobering statistic: "70% of trans adults and 56% of LGBTQ adults overall experience discrimination from health care professionals" (6). The HealthCare.gov website has advice on how to find reasonable coverage for same-sex couples (7) and transgender people (8).

In the workplace, the unemployment rate for transgender people is three times greater than the average, and over half of LGBTQ workers say discrimination negatively affects them on the job (9). When it comes to wages, one 2021 source indicates that gay men earn on average $56,936/year ($26,533 less than heterosexual men) and that lesbian women earn $45,606 ($5,855 less than heterosexual woman) (10). Different studies do show different results, but just where are the best places to work? You can see a list of 842 businesses for the year 2022 that meet the Human Rights Campaign Foundation's criteria for the "best place to work for LGBTQ+ equality" (11). The list includes companies as diverse as Bank of America, Chevron, GE Appliances, Hilton, Kaiser Permanente, Lockheed, Sephora, Microsoft, Tractor Supply Company, and the Walt Disney Company.

Regarding cost of living, a Forbes article notes that LGBTQ families have on average higher mortgage debt, higher student loan debt, and higher credit card debt than all American families. The reasons vary. Many LGBTQ families feel safer in certain areas of the country, such as along the coasts and in cities of states that ban discrimination, but these areas also tend to have higher costs of living (12). Intuit offers a budget calculator with guidelines that help determine how much rent one can afford (13). The Human Rights Campaign maintains an LGBTQ student scholarship database that can help pay for school (14). 

Until more states enact laws banning LGBTQ discrimination—or a federal law passes that covers all states—the LGBTQ community must be vigilant when taking out loans, choosing medical plans, and pursuing work. Fortunately, there are sources that can help.

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Sources:

1 https://www.moneygeek.com/financial-planning/lgbtq-financial-challenges/

2 https://bethkobliner.com/advice_basics/lgbtq-financial-challenges/

3 https://www.fool.com/the-ascent/banks/articles/banks-that-are-lgbtq-friendly/

4 https://www.lambdalegal.org/helpdesk

5 https://www.moneygeek.com/financial-planning/lgbtq-financial-challenges/

6 https://mint.intuit.com/blog/lgbtq-finances/5-financial-issues-that-affect-the-lgbtq-community/

7 https://www.healthcare.gov/married-same-sex-couples-and-the-marketplace/

8 https://www.healthcare.gov/transgender-health-care/

9 https://outandequal.org/wp-content/uploads/2019/03/2019-LGBTQ-Fact-Sheet.pdf

10 https://bethkobliner.com/advice_basics/lgbtq-financial-challenges/

11 https://www.hrc.org/resources/best-places-to-work-for-lgbtq-equality-2022

12 https://www.forbes.com/sites/debtfreeguys/2019/03/20/the-lgbt-community-faces-these-5-financial-challenges/?sh=595097b764c4

13 https://mint.intuit.com/blog/housing/rent-budget-calculator/

14 https://www.hrc.org/resources/scholarships

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