From overcoming discrimination and inequality to finding inclusive institutions, the LGBTQ+ community has had many challenges and has struggled to find its place in financial well-being.
At WealthKernel we aim to be part of the dialogue in addressing this issue and have a real conversation about it this Pride Month.
In this article, we will explore the common financial struggles faced by the community, provide tips and strategies for budgeting, saving and investing and emphasise the importance of financial empowerment. We’ll also look at the LGBTQ+-friendly resources that are available right now.
The LGBTQ+ community often experiences financial challenges such as wage disparity, workplace discrimination, and limited legal protections.
LGBTQ employees take home, on average, £6,703 less per year than their straight counterparts, equivalent to a pay gap of 16% — almost double the UK pay gap between men and women of 9.6%.
Many workplaces don’t regularly review the pay gap of their LGBTQ+ staff or have policies that protect against discrimination based on sexual orientation or gender identity. Discrimination in the workplace leaves LGBTQ + consumers with smaller earnings compared to their het/cis peers and ultimately lesser financial resources to manage expenses, savings and retirement.
They also have a higher rate of homelessness, with one in five experiencing homelessness at some point in their lives. Social disadvantages, rejection or discrimination, are among the reasons this issue affects many LGBTQ+ individuals so severely.
Whilst investment institutions such as WealthKernel cannot mitigate these disadvantages alone, there are ways we can support the LGBTQ+ community with tools and resources to help boost their financial situation where possible.
Tips and strategies for budgeting and saving
- Build a realistic budget - Assess your current financial situation and goals to create a budget that suits you
- Debt Management - Pay down high-interest debts and seek professional advice for consolidation and repayment plans
- Emergency Fund - Save for big expenses such as marriage or civil partnership, homeownership, childcare and financial setbacks
Resources for the community
Everybody needs a financial plan or assistance to help reach their goals, but for the LGBTQ+ community, there are other challenges, including a lack of inclusivity in the financial sector.
Many organisations and community centres offer workshops, webinars, and resources tailored to LGBTQ+ individuals. They cover topics like budgeting, saving, investing, and navigating the unique financial hurdles faced by this community. Empowering individuals with financial literacy is a great way to boost their economic well-being.
Here are some resources that can be useful for people looking for inclusive financial advice:
Stonewall’s Diversity Champions Program is an initiative that promotes LGBTQ+ inclusion in the workplace, including financial institutions. Individuals can look for organisations that are a part of this initiative and support inclusivity.
The Center for LGBTQ Economic Advancement & Research offers LGBTQ-affirming financial workshops, counselling, and self-help resources that LGBTQ consumers, families, and communities can use to understand the financial options available to them so they can achieve their unique financial goals.
WealthKernel is proud to have a diverse workforce that encourages a safe and open environment for LGBTQ+ people to be themselves. We strongly encourage all financial institutions to celebrate Pride, not just during the month of June but all year round.