Being a woman comes with its benefits but also has its drawbacks, especially when it comes to being slapped with pink tax.
It is a tax that affects half the population who already earns less than men, and it witnesses women paying more for various products and services. Here is what pink tax is all about:
How pink tax affects women’s pockets
Since the inception of capitalism, women have found themselves digging deeper into their pockets when it comes to buying certain items. The reason? Products targeted at women such as sanitary pads, shaving products, and clothes were considered luxury items.
Take a quick stroll through your local supermarket or clothing store and you will find that the female version of the same product costs more. The only difference between the two may be the colour.
Furthermore, research has revealed that women end up paying more than men 42% of the time. It may come as no surprise that the people who hold the seats of power to change the law against such taxes are predominantly men. In South Africa, out of every 10 members of parliament four are women.
The gender pay gap
At a glance, pink tax may see some products costing women an extra R2 to R6 more for the same item.
The gender pay gap that currently exists in South Africa also means that women earn on average 25% less than men for doing the same job. It soon becomes a tricky balancing act of working just as hard as their male counterparts while earning less money that needs to be stretch across a range of financial responsibilities.
Recent research has revealed that because of this gender tax, women end up paying 8% more for adult clothing, 13% more for personal care products and 8% more for senior/home health care products. The extra cost means that women find themselves having less money to put towards important things such as retirement, life insurance and investments.
How to stretch every last buck
While we may still have a long way to go when it comes to cancelling pink tax, there have been some steps taken to make important products affordable to women. Decisions such as the pink tax being removed on necessities such as sanitary products which were taxed at 15% have been in effect since April 2019.
When it comes to being able to afford important financial products such as life insurance to ensure that you and your loved ones have a financial safety net, MiWaylife has created a cover that is 30% cheaper for women than for men.
When it comes to stretching your finances to make it work for you it is crucial to:
Always compare your options to find what is suitable and affordable for you.
Access free financial services that can help you plan your finances better.
Set a budget in place that you can adapt over time.