Beyond the Pink Tax: Why Women Work More and Earn Less

It has long been more expensive to be a woman in the United States, and in 2025, the financial burden is heavier than ever. From the well-documented "pink tax" to the gender wage gap, the economic disparities women face have profound effects on mental health, increasing anxiety, stress, and depression. As financial inequities persist, it is crucial to examine how they manifest and what women can do to mitigate their impact. Let’s begin by breaking down the ways in which it simply costs more to be a woman.

The Pink Tax - Paying More for the Same Products

The "pink tax" refers to the extra amount women pay for goods and services compared to men. This includes personal care products, clothing, and even dry cleaning. Studies show that products marketed to women cost, on average, 7% more than their male counterparts. Feminine hygiene products, an essential expense, are also taxed in many states as "luxury items," while necessities like Viagra remain tax-free. These disparities force women to allocate more of their income toward basic necessities, compounding financial stress.

The Gender Wage Gap - Earning Less, Paying More

Despite progress, the gender wage gap remains significant. In 2025, women earn approximately 82 cents for every dollar a man earns, with Black and Latina women earning even less. This gap translates to a substantial lifetime earnings difference, limiting women's ability to save for emergencies, invest, and retire comfortably. When coupled with the pink tax, women find themselves in a cycle of financial strain that fuels chronic stress and anxiety. It is worth mentioning that women also are marketed more products and services in order to maintain and keep up with the constantly evolving beauty standards. Examples include make up, cosmetic procedures, hair removal treatments etc. So, not only are women being paid less than their male counterparts, they are also being pressured into spending more time and money on aesthetic services to a much higher degree.

Maternity Leave - The Cost of Motherhood

In my work as a clinical psychologist specializing in women’s wellness, I often hear that a huge barrier to having children is how much it will cost, and how this cost will fall disproportionately on the woman. The United States is one of the only developed nations without federally mandated paid maternity leave. Women who take unpaid leave often struggle to cover expenses during a time where expenses are naturally quite high, while those who return to work prematurely risk their physical and mental health. The financial burden of childbirth, hospital bills, and postnatal care only exacerbates stress levels. Without systemic support, many new mothers experience heightened postpartum depression, making it difficult to balance work and family responsibilities.

The Cost of Childrearing - A Financial and Emotional Toll

Raising a child in America is expensive, with the average cost exceeding $310,000 over 18 years. Childcare costs have soared, with many families spending more on daycare than on rent or mortgage payments. Women, who disproportionately handle caregiving responsibilities, often reduce work hours or feel the need to leave the workforce entirely, further impacting their financial stability and sense of identity. The pressure of balancing career and family leads to burnout, resentment, anxiety, and depression, particularly when economic hardship is involved. This is made more challenging as women try to manage reactions and judgements from others regarding their choice to work vs. stay home. Spoiler alert: there is no right choice.

Unpaid Labor - The Invisible Burden on Women

In addition to paid work, women perform a disproportionate share of unpaid labor at home, including childcare, household chores, and eldercare. Studies show that women spend, on average, 4.5 more hours per day on unpaid labor compared to men. This invisible workload often goes unrecognized and unappreciated, leading to frustration and emotional exhaustion. The time spent on these responsibilities takes away from opportunities for career advancement, self-care, and personal development, further exacerbating the financial and mental health disparities women face. The expectation that women should "do it all" without adequate support contributes to high levels of burnout and resentment, reinforcing a cycle of stress and inequity.

Healthcare Disparities - Paying More for Less

Another fun fact: women pay more for healthcare over their lifetime, not just due to reproductive health needs but also because of systemic biases in medical research and treatment. Many insurance plans offer insufficient maternal or mental health coverage, leaving women to shoulder high out-of-pocket costs. The stress of affording necessary healthcare, particularly for conditions like PCOS or endometriosis, further compounds financial and emotional strain.

The Mental Health Toll - Chronic Stress and Anxiety

If it has not already been made abundantly clear thus far, the economic disparities women face create a relentless cycle of stress. Financial insecurity is a leading cause of anxiety and depression, and when coupled with the societal expectations of women as caregivers, the pressure becomes overwhelming. Many women struggle with imposter syndrome at work, guilt for taking time for themselves, and a sense of hopelessness in the face of systemic inequities. Without adequate financial stability, accessing mental health resources becomes another financial burden rather than a necessity.

What Can We Do?

I realize I just threw a lot of negative information at you, and you might be wondering “so what do we do about it?” While systemic change is necessary, there are steps women can take to protect their financial and mental well-being.

Financial Strategies:

1. Invest in Financial Education and Literacy – Learn about investing, retirement planning, and wealth-building strategies to combat financial disparities. These topics are often heavily discussed in spaces where there are men, and be can intimidating for women initially. I encourage anyone to start by listening more intently to such conversations, ask questions, and then seek out professional advisors for more personal counseling and direction.

2. Negotiate Salaries & Benefits – Advocate for fair pay and seek financial literacy resources to navigate salary discussions. Don’t forget to also leverage available workplace benefits like HSAs, FSAs, and childcare assistance programs to make the most out of them.

3. Budget and Plan – Track spending and create a budget that accounts for necessary expenses and savings goals. I recommend tracking on how much is being spent on beauty services, “retail therapy”, medical treatments, home maintenance, and caretaking expenses. When appropriate, challenge your impulse to spend if you truly do not need the item or service, regardless of what the latest trend or societal expectation surrounding it is.

Mental Health Strategies:

1. Prioritize Self-Care – Establish boundaries around work and family responsibilities to prevent burnout. This might look like saving time and financial resources by saying no to big social events, not working overtime during weekends, or taking an occasional “mental health day” to recharge.

2. Seek Support – Connect with women's networks, mom groups, therapy groups, and financial advisors for guidance and community.

3. Advocate for Change – Join advocacy groups pushing for policies like paid parental leave, wage equality, and affordable childcare.

Systemic Change:

1. Support Women-Owned Businesses – Shift spending to companies that prioritize fair pricing and wages. If you are going to be putting your money towards something, it might as well be a business that aligns with your values!

2. Vote for Policy Changes – Support candidates and legislation aimed at gender equity and financial justice.

3. Raise Awareness – Share personal stories and research to highlight economic disparities and encourage conversations about financial inequality and disproportionate labor.

Being a woman in America in 2025 comes with significant financial challenges that take a toll on mental health. While personal strategies can help mitigate stress, systemic change is necessary to narrow the financial gap. By advocating for policy changes, prioritizing financial education, and taking steps to protect mental health, women can work toward a future where financial well-being and gender equality go hand in hand.

Sources:

American Psychological Association. (2025). Financial Stress and Mental Health: A Growing Crisis for Women. Retrieved from www.apa.org

Child Care Aware of America. (2025). The Rising Cost of Childcare. Retrieved from www.childcareaware.org

Consumer Reports. (2025). The Pink Tax: How Women Pay More for Everyday Items. Retrieved from www.consumerreports.org

Glickman, J., & Curran, I. (2022). The cost of raising a child in the United States. Brookings Institution. Retrieved from https://www.brookings.edu

Kaiser Family Foundation. (2022). Women’s Health Care Costs: Implications for Coverage and Access. Retrieved from https://www.kff.org

National Partnership for Women & Families. (2025). The State of Paid Leave in America. Retrieved from www.nationalpartnership.org

New York City Department of Consumer Affairs. (2015). From cradle to cane: The cost of being a female consumer. NYC DCA. https://www1.nyc.gov/assets/dca/downloads/pdf/partners/Study-of-Gender-Pricing-in-NYC.pdf

Tax Foundation. (2020). Tampon Taxes: Do Feminine Hygiene Products Deserve a Sales

Tax Exemption? Retrieved from https://taxfoundation.org

U.S. Bureau of Labor Statistics. (2025). Gender Pay Gap Report. Retrieved from www.bls.gov