LGBTQ+ Financial Support and Resources

Updated: November 9, 2024

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Individuals who are lesbian, bisexual, transgender, queer or questioning (LGBTQ) often have more specific financial needs than those outside the community. For example, some individuals may not be able to rely on the financial support of parents or legal guardians, or they may hope to seek out hormone and surgical treatments.

In addition, housing and mortgage discrimination affect members of the LGBTQ+ community at higher rates, while a lack of federal employment nondiscrimination protections can lead to concerns for those looking for employment.

A Glimpse at the LGBTQ+ Community and Finances

 

The following statistics illuminate some of the challenges faced by LGBTQ+ individuals.

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22% of LGBTQ+ Americans have not been paid equally or promoted at the same rate as their peers.

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20% of LGBTQ+ employees have a written retirement plan, compared to 16% of heterosexual employees.

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Approximately 49.8% of LGBTQ+ adults own their homes, while 70.1% of non-LGBTQ+ adults own their homes.

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At 29.4%, transgender people have especially high rates of poverty.


Challenges Faced by LGBTQ+ Individuals in the Financial System

There are many areas of the financial system in which LGBTQ+ individuals may be met with particular difficulties or even discrimination. According to a 2018 Experian survey on LGBTQ finances, 62% of respondents reported experiencing financial challenges due to their sexual orientation or gender identity.

For example, those within the community might be faced with more expensive family planning options to support adoption or pay for IVF treatments. Trans folks seeking hormone or therapy treatments may also be looking at high costs, while marriage, estate planning and taxes may be complex issues for same-sex couples who have been together for decades.

Below are a number of resources to help support LGBTQ+ individuals hoping to make smart financial decisions.

  • 5 Financial Factors Impacting the LGBTQ+ Community: Understanding the financial challenges facing those in the LGBTQ+ community can help you be better prepared to overcome them. This piece outlines those factors in an easy-to-read way.
  • The Guide to Credit Discrimination: Many groups have been subject to credit discrimination, and the LGBTQ+ community is one of them. This guide can help you understand how and why this happens.
  • Resources for LGBTQ College Students: Most colleges are more than happy to support LGBTQ+ students. This guide can help you understand which resources are offered by schools.
An illustration of a young gay couple exploring and looking at houses together.

Your Right to Fair Housing

The Fair Housing Act, which was signed into law in 1968, prohibits housing discrimination on the basis of race, color, national origin, religion, sex, familial status and disability. Some LGBTQ+ individuals denied housing or a mortgage may find help under the Act, although it doesn’t explicitly list sexual orientation or gender identity under its protected classes.

A person who identifies as LGBTQ may also find support under HUD’s Equal Access Rule or state and local anti-discrimination laws that specifically include sexual orientation and/or gender identity as protected classes.

Homelessness

LGBTQ+ youth who don’t find acceptance from their families often find themselves in unreliable or precarious housing situations. Homelessness among the LGBTQ+ community is more common than most realize. Among young adults aged 18-25, LGBTQ+ people have a 2.2 times greater risk of homelessness than non-LGBTQ+ people, according to the Williams Institute. Studies have also found that between 20% and 45% of homeless youth identify as LGBTQ+. Below is a comprehensive list of resources which can help.

Housing Discrimination

Folks within the LGBTQ+ community may face discrimination when it comes to housing and lending. Discrimination can include being charged higher rents, being denied a mortgage or being charged higher interest rates on a mortgage due to prejudice related to sexual orientation and/or gender identity or HIV, religion or race. Such issues can be particularly prevalent among LGBTQ+ youth and young adults who are not welcomed at home. These resources offer an in-depth look at different ways to overcome discrimination.

  • Renting as a Member of the LGBTQIA+ Community: This guide addresses ongoing housing discrimination faced by the LGBTQIA+ community, highlighting legal protections under federal and state laws, common forms of discrimination and steps renters can take to protect their rights. It also provides resources for finding inclusive housing and support organizations dedicated to combating discrimination.
  • Guide to Renter Rights, Responsibilities and Protections: This guide provides essential information on renters' rights and responsibilities, covering fair housing laws, eviction processes and protections against discrimination. It also offers tips on how to negotiate rent, handle repairs and resolve conflicts with landlords, ensuring renters are informed and protected.
An illustration of a young couple planning for a family using a large clipboard and calculator.

Planning for a Family

An estimated 45% to 53% of LGBTQ+ millennials are planning to become parents for the first time or add another child to their family. For those who identify as LGBTQ+, family planning may require tackling a few hurdles.

Many LGBTQ+ households consider adoption, fertility treatments, foster care and surrogacy when thinking about parenthood. But options often come at a high price. IVF treatments, for example, can cost upwards of $10,000. Newlywed couples may also be learning about the laws of marriage and taxes for the first time. A variety of resources can help.

Marriage

A 2015 ruling by the Supreme Court federally legalized same-sex marriage. With same-sex marriage now legal in all 50 states, couples are entitled to the same financial benefits as heterosexual couples. The following resources can offer guidance on managing financial affairs.

  • Financial Playbook for Married Couples: For most married partners, finances change significantly after marriage. This playbook can help you tackle certain issues as they come up and show you how to talk openly about your finances with your partner(s).

Parenting and Adoption

More than 100,000 same sex couples are raising children in the U.S., according to the Williams Institute. Same-sex couples raising children are also seven times more likely to be raising a foster child and seven times more likely to be raising an adopted child than their different-sex counterparts.

Deciding to have a family and planning for parenthood are some of the biggest choices made in life. A variety of resources can help you understand how to factor family matters into your budget long before you even decide to have a child.

  • LGBTQ+ Financial Guide to Becoming a Parent: In this guide, you’ll be able to see how much adoption costs, as well as options like surrogacy, foster care, artificial insemination and more. The guide also explains what each option entails so you understand what to expect.
  • A Guide to Child Adoption Costs: Adoption is one of the most common ways LGBTQ+ families have children, and there are a variety of options. Find out the difference between open and closed adoptions, in addition to international and domestic adoptions.
  • Financial Guide to Being a Foster Parent: One of the most affordable options for LGBTQ+ individuals and couples looking to have children is through foster care. This guide provides resources for financially preparing to foster children, and it breaks down the associated costs.
  • Managing Financial Challenges for Single Parents: If you’re single, having a child comes with managing financial responsibility alone. You’re apt to have a few challenges along the way, but this guide will help you prepare for them head-on.

Taxes

Before same-sex marriage was legalized by the Supreme Court, those in domestic partnerships or those who had lived together but couldn’t get married were not able to claim tax benefits that other individuals could. All couples can now claim tax deductions and other tax benefits offered to heterosexual couples. To understand LGBTQ+-specific taxes, check out the resources below.

An illustration of a large heart with the Pride flag colors and a blue medicine bottle.

Finding Health Care Support

LGBTQ+ people not only may experience higher health care costs, but they also may have a harder time finding doctors with adequate expertise who can talk knowledgeably about family planning and trans care.

LGBTQ+ people are also at greater risk for certain conditions, diseases, and infections such as HIV/AIDS and cervical cancers and may have less access to healthcare and delay getting care, in part due to fear of unfair treatment by healthcare providers.

Medical resources for LGBTQ+ people are vital. The articles and organizations below are dedicated to making medical care more approachable and affordable for the LGBTQ+ community.

  • Financing & Support for Gender Confirmation Surgery: For trans folks, gender confirmation surgery is often one of the most affirming choices they can make. These surgeries don’t come with a low price tag, though, so financial help is often a necessity. This guide can help you understand where to get financing.

Preparing for the Future: Estate Planning and Retirement

For LGBTQ+ couples, estate and retirement planning may require a few extra considerations depending on a couple’s marital status as well as their assets and life insurance policies. Making sure you have the correct paperwork in order, including wills, medical directives and trusts, is essential to smart decision making. For help planning, there are a few key resources:

  • 6 Tips to Help LGBTQ Partners Plan Their Estate: Since many states don’t have dedicated anti-discrimination laws in regards to LGBTQ+ individuals and families, planning your estate can be complex. These tips can help make the process a bit easier.

Nonprofits and Businesses Helping the LGBTQ+ Community

A number of nonprofits and charities are dedicated to helping those within the LGBTQ+ find their financial footing. Other businesses are particularly inclined to support LGBTQ+ individuals. Below are some reputable organizations that can help.

Ask the experts:

What are the best financial resources for LGBTQ+ individuals?

President at Total Engagement Consulting by Kimer

Some include:

  • Finding a good LGBTQ+ competent attorney to assist with estate planning and will creation.
  • Finding a good LGBTQ+ competent financial planner to assist with retirement planning and contingency planning for possible loss of job. Many of the leading financial planning companies even have LGBTQ+ financial planning training and certification for their financial advisors.
  • AARP, which is the leading advocacy group for elder adults, is quite LGBTQ+ supportive and competent, so do avail yourself of their resources.
  • The Human Rights Campaign (HRC) Corporate Equality Index (link) provides scorecards on how LGBTQ inclusive various companies are, including those who provide health insurance benefits for transgender employees.
Lead Planner at Facet Wealth & a CERTIFIED FINANCIAL PLANNER™ (CFP®) professional

The best financial resource for LGBTQ+ individuals is to work with an affirming and LGBTQ+ inclusive AFC® or CFP® professional who understands the unique lives and financial needs of LGBTQ+ people.

Financial Representative at Strategies for Wealth and Guardian Life

Too many TV programs depict the LGBTQ community as people who always have fabulous jobs and wardrobes. Then many try to emulate this lifestyle in real life by buying things. Everyone wants to have a nice house, a nice car and a spectacular vacation. I don’t blame them, we all feel that we deserve the things that can signify we belong to a certain echelon. But no one talks about how much debt they are taking on to get these things. They only want to display the side that looks good.

When I work with LGBTQ clients, we talk about how to overcome this mentality. Most of us in the LGBTQ community faced challenges when we came out. Then society throws in advertising and marketing that promotes overspending on things you don't need. To a certain extent, our community has been encouraged to “buy” our happiness and the first thing I tell my clients is this is not their fault.

I want to help people shift this paradigm. Talk about money often, talk about the learning experiences and why spending or saving is bringing you joy and providing additional long-term options. I encourage them to “come out of the closet again” – and this time it’s about money.

It’s okay to say to your friends, “I’m not going out this weekend because I recently went above my budget. Why don’t we have a bottle of wine at my house?” Sometimes we have to experience a little bit of discomfort now in order to allow our future selves to be comfortable. No one grows in comfort.

I try to educate my clients to learn a new way to have their money speak for them. Instead of buying the new “it” item you can do more good by thinking long-term and building an LGBTQ-friendly portfolio. Nowadays there are excellent resources, such as the Human Rights Campaign Foundation’s Corporate Equality Index.

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About Christopher Murray


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Christopher Murray is a personal finance and sustainability writer covering diverse topics, from budgeting to unique investment options like socially responsible investing (SRI) and cryptocurrency. His works focus on sustainability as the best savings tool. He contributes finance articles to MoneyGeek.

Murray earned both his English literature and gender studies degrees from Smith College.


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