Why the LGBTQ+ Community Faces Financial Inequity
As someone who was raised evangelical Christian and still holds the same fundamental beliefs but who has much more liberal social values than that with which I was raised, I fall into an uncomfortable middle position.
On one side, I have close friends, co-workers, and clients who are LGBTQ+ and I am up close and personal with their struggles on a daily basis. I could tell you so many heartbreaking stories about things they’ve gone through that make me think… “No wonder the world thinks Christians hate gay people.”
On the other side, I have close friends and family members who firmly believe that homosexuality is a choice, God condemns that choice, and that I, as a fellow believer, should be pushing my LGBTQ+ friends to the “right” side.
Beliefs aside, today I want to spend some time talking about financial inequities in the LGBTQ+ community. I recently heard that folks in the LGBTQ+ community tend to earn 90 cents for every dollar that a non-queer worker earns. Being straight, white, and not having that experience, I found that hard to believe… so I did some digging.
Turns out, it’s true! Here are some stats according to the 2022 US Bank insights study, “The LGBTQ+ Financial Landscape”:
8% of US adults identify as LGBTQ+. There are about 3.35 million people in the US, which means 268,000 identify as LGBTQ+. That is not a small number!
46% of LGBTQ+ individuals have experienced discriminatory treatment at work, and 34.2% have left a job due to discrimination.
43.9% of transgender employees believe they weren’t hired due to their sexual orientation, and they also report much higher rates of being fired.
LGBTQ+ individuals earn at most $0.90 for every dollar earned by the average American worker, and transgender women earn just $0.60 for every dollar.
17% of LGBTQ+ individuals have experienced homelessness, as opposed to 6.2% of the general population.
Due to cities often being more liberal and therefore LGBTQ+ friendly, those in the LGBTQ+ community gravitate toward cities, which are more expensive than living in the suburbs.
LGBTQ+ individuals are uninsured at a higher rate than the general population, with transgender women being the most likely to be uninsured or underinsured.
What’s the reason behind these statistics? Based on my findings, these are 3 of the biggest reasons: Employment Discrimination, Housing Discrimination, and Hate Crimes.
Employment Discrimination
Source: US Bank
In 2020 the supreme court determined that employment discrimination against LGBTQ+ individuals is illegal. However, that doesn’t stop employers from citing other reasons to fire or refuse to hire an individual who is in the LGBTQ+ community. A bill called “The Equality Act” was introduced in 2021 and, after failing to pass, was reintroduced in 2023 and addresses discrimination. Despite not seeing much movement, there is still optimism that this will pass. Unfortunately, though, it’s a bill that can be overturned by the next president. Trump has a history of discrimination against the LGBTQ+ community so these individuals are rightfully fearful of the future of their employment. When employment is not guaranteed, it keeps financial stability in question and makes it harder for individuals to gain independence.
Housing Discrimination
Lenders are not legally allowed to discriminate, but the US Bank survey found that 73% of LGBTQ+ individuals have felt discriminated against during the mortgage process. According to the Human Rights Campaign, “Lesbian, gay, bisexual, transgender, and queer (LGBTQ+) people face significant levels of discrimination in housing, which can take a variety of forms. LGBTQ+ people are at risk of being denied, charged higher rates for, or removed from housing. Currently, there is no federal law that consistently protects LGBTQ+ individuals from housing discrimination.” A lack of viable housing options can lead to enormous inequity for LGBTQ+ individuals and minimize the choices they have for housing. Cost of living is already ridiculous as it is, so when those options are decreased, it makes it a lot harder for folks to find affordable housing.
Hate Crimes
Source: Pew Research
In late 2023, the FBI released its annual crime report for 2022, which showed that anti-LGBTQ+ crimes were up 32.9% based on gender identity. In regards to a victim’s sexual orientation, there were 1,947 incidents in 2022, 1,711 in 2021, 469 in 2020, and 358 in 2019. Last June, things got so bad that the Human Rights Campaign declared a national state of emergency for LGBTQ+ individuals for the first time ever. In addition, a recent Pew Research study found that while Democrats (59%) are far more likely than Republicans (9%) to believe gender can be different from assigned sex, still only 34% of all registered voters believe that “whether someone is a man or a woman can be different from the sex at birth.”
These hate crimes have a profound impact on the financial stability of LGBTQ+ individuals. Victims often face significant medical expenses (which may or may not be covered due to discrimination in health insurance), loss of income due to inability to work, and long-term psychological trauma that can affect their productivity and career progression. Additionally, the pervasive fear of discrimination and violence can limit access to better job opportunities and safe housing, forcing many into less stable and lower-paying positions. These financial burdens are compounded by potential legal costs and the need for additional security measures, creating a cycle of economic hardship that is difficult to escape.
Addressing the financial inequity faced by the LGBTQ+ community requires a concerted effort to tackle housing discrimination, employment discrimination, and the constant threat of hate crimes. These three issues are not even close to the only problems, but they create significant barriers to economic stability and prosperity for LGBTQ+ individuals, perpetuating a cycle of financial insecurity. Let’s continue trying to dismantle these obstacles and work toward a future where everyone, regardless of their sexual orientation or gender identity, has the opportunity to thrive financially. It’s not just a matter of equality—it’s a matter of justice and humanity.
PS: Check out The Debt Free Guys if you’re looking for some fabulously gay money coaches!
