By outdoor-nature-child.com **Interviewer:** I have a pair of LGBTQ+ friends who have formed a family and adopted a daughter. What advice do you have for them regarding financial planning?
**Expert:** Being a part of the LGBTQ+ community comes with its own set of social and political challenges, and when it comes to forming a family, there can be additional financial burdens as well. From finding affordable housing to covering medical expenses, LGBTQ+ individuals and families often struggle more than their heterosexual counterparts. The costs associated with parenting and other family expenses frequently differ significantly.
Although the government has made progress in employment equality policies to protect the LGBTQ+ community, queer families, particularly transgender ones, should still account for additional costs to ensure financial security.
**Interviewer:** Could you elaborate on the financial challenges that LGBTQ+ families face?
**Expert:** Absolutely. Studies indicate that LGBTQ+ families generally encounter more financial challenges than their heteronormative counterparts. For example, a 2021 study by the Census Bureau found that LGBTQ+ adults face a higher likelihood of food insecurity and job income loss following the pandemic. Additionally, the Kaiser Family Foundation reported a rising number of LGBTQ+ individuals with chronic health issues or disabilities, which can lead to increased caregiving costs. Family Equality also discovered that LGBTQ+ parents face greater economic obstacles when raising children.
If LGBTQ+ individuals want to ensure economic stability, they often need to prepare for additional expenses.
**Interviewer:** What specific areas of expenditure should these families focus on?
**Expert:** There are four key areas where LGBTQ+ families often face significant costs:
1. **Healthcare:**
Healthcare is becoming increasingly unaffordable for everyone, but queer families may find themselves paying even more. According to the American Psychiatric Association, LGBTQ+ individuals are more likely to require mental health services, yet tailored services are relatively scarce, driving up costs. Additionally, if a family member needs gender-affirming healthcare, such as surgeries or hormone therapy, those can be substantial out-of-pocket expenses.
2. **Housing:**
Safety is a pressing concern for many LGBTQ+ individuals. To protect their families, many choose to live in urban areas where living costs are generally higher. According to Achieve Lending, securing affordable housing has become a challenge for many in the LGBTQ+ community, particularly as housing prices in desirable areas continue to rise.
3. **Family Planning:**
Becoming a parent inevitably involves significant costs, and LGBTQ+ parents often face even higher expenses. Many must pursue non-traditional routes to parenthood, such as in vitro fertilization, adoption, or surrogacy, all of which come with hefty price tags. Carmen Perez, an advocate within the LGBTQ+ community, mentions that she and her wife initially did not intend to pursue IVF but ended up doing so to the tune of expensive treatments. They sought out providers who understand the nuances of LGBTQ+ family planning and how to navigate the associated healthcare costs effectively.
4. **Loans:**
Research by Achieve Lending indicates that the LGBTQ+ community often encounters challenges when applying for loans, both mortgage and auto loans, due to factors such as financial constraints and discrimination from financial institutions. It’s vital for queer families to prepare for these hurdles.
**Interviewer:** What strategies can these families employ to budget for these higher living costs?
**Expert:** Carmen Perez advises that while accounting for these additional costs can feel overwhelming, long-term planning can help meet financial goals. Here are some strategies to consider:
1. **Seek LGBTQ+-inclusive service providers:** Carmen suggests shopping around for providers that cater specifically to LGBTQ+ individuals and offer various financing options, including payment plans.
2. **Establish targeted savings accounts:** If families plan to adopt or use surrogacy, setting up dedicated savings accounts for these goals can be highly beneficial.
3. **Build an emergency fund:** Medical expenses for both physical and mental healthcare can arise unexpectedly, so having a reserve can help mitigate financial stress during those times.
4. **Explore ways to increase income:** Perez lists multiple options, such as seeking a raise or taking on a side job, which could help accelerate reaching financial milestones.
5. **Support policies addressing inequality:** Beyond prioritizing their own financial safety, individuals can also consider supporting nonprofits and government policies aimed at directly addressing financial inequities faced by the queer community, helping to create a more favorable environment for transgender individuals.