From Paychecks to Pink Tax: Financial Tips Every Woman Needs

Women of our Time
Jun 26
3 min read

The Financial Gender Gap in 2025: Where Are We Now?

Despite progress, women still face significant financial disadvantages at work—from unequal pay to hidden costs like the "pink tax." In 2025, the UK gender pay gap stands at 14.9% (ONS), meaning women effectively work for free from November onward each year. But the disparities run deeper:

Promotions & Pay Rises: In 2024, only 63.85% of women received a pay increase vs. 70% of men, and just 19.45% of women were promoted compared to 25% of men (FTSE Women Leaders Review).
Salary Transparency: 62% of women don’t know how their pay compares to male colleagues, perpetuating inequality (Fawcett Society).

Understanding these issues isn’t just about fairness—it’s about financial survival in a system stacked against women.

Beyond the Paycheck: The Pink Tax’s Hidden Toll

The "pink tax"—higher prices for products marketed to women—quietly drains women’s wallets. Examples include:

Workplace essentials: Women’s dry cleaning costs 27% more (Citizens Advice).
Personal care: Gender-neutral razors are 56% cheaper than "women’s" versions (Which? 2024).
Financial services: Women pay higher interest rates on loans (Financial Conduct Authority).

Compound impact: For a woman earning £30,000, the pay gap + pink tax could cost her £500,000+ over a lifetime (Women’s Budget Group).

Structural Barriers: Why Women Fall Behind

The Career Break Penalty

Women take 5x more career breaks for caregiving, reducing lifetime earnings by £39,000 on average (TUC).

Pension gap: By retirement, women have £136,000 less in savings (Now: Pensions).

The "Glass Ceiling" Tax

Only 10% of FTSE 350 CEOs are women, limiting role models and sponsorship opportunities (FTSE Women Leaders Review).

The Financial Stress Crisis

84% of women worry about financial stability vs. 73% of men (Money & Mental Health Policy Institute).

74% experience financial stress weekly—yet only 12% seek workplace support (Deloitte).

What Needs to Change? Systemic Solutions

For Employers:

✔ Salary transparency: Publish pay bands and promotion criteria.

✔ Flexible work policies: Remote options for caregivers.

✔ Targeted financial education: Workshops on pensions, investing, and negotiation.

For Policymakers:

✔ Legislate against pink tax (e.g., Spain’s 2023 VAT exemption on menstrual products).

✔ Expand shared parental leave to reduce career penalties.

Your Financial Action Plan:

1. Negotiate Like a Pro

Script: "Market data shows this role pays £X–£Y. Given my skills, I’m requesting £?."
Tools: Use Glassdoor and PayScale to benchmark salaries.

2. Beat the Pink Tax

Swap: Gender-neutral toiletries, workwear (e.g., Uniqlo vs. "women’s" brands).
Challenge: Report discriminatory pricing to Trading Standards.

3. Future-Proof Your Finances

Pensions: Contribute an extra 1% annually—it could grow by £25,000+ over 30 years (PLSA).
Invest: Start with £50/month in a stocks & shares ISA (e.g., Nutmeg, Vanguard).

4. Advocate Collectively

Join employee resource groups (ERGs) for pay equity.
Support campaigns like #EqualPayDay and Fawcett Society’s legal challenges.

Conclusion: Turn Frustration into Power

The pay gap and pink tax are systemic theft—but women are fighting back. By negotiating fiercely, spending strategically, and demanding policy change, we can close the gap.

How Women of Our Time Can Help

We’re here to equip you with the tools to earn more, keep more, and grow more:

Free 1:1s via the Support Hub: Access to experts who can help you with your specific problems, offering tailored advice and actionable steps. 
Workshops: Join our sessions on topics that help with finances
Access to Our Resources Section: Explore our website for a wealth of products, information, and tools designed to help you thrive. 
Newsletters and Blogs: Stay informed with our regular updates, packed with insights, tips, and the latest news. 
Up-to-Date Information: We provide references to trusted sources where you can find the latest information on workplace equality, legislation, and research. UK-wide support networks like Women in Banking & Finance (WIBF)