How the Pink Tax is Quietly Impacting Your Budget

This isn’t just a “women’s issue”. If you share your finances with a partner or have women in your household, it affects your overall spending. As we highlighted on the podcast, something as simple as a razor can cost a woman $2 more than the male equivalent—same brand, same specs, just different packaging.

Individually, that might not feel like a big deal. But across all the categories where this happens—personal care, clothing, services—it starts to add up. That’s money walking out the door unnecessarily.

Let’s take a look at where this appears:

• Personal care: Women’s shampoo, razors, and deodorants regularly cost more than the men’s versions—even when the ingredients and functionality are the same. On average, women’s personal care products cost 13% more.

• Clothing: A plain white t-shirt for women is typically 8% more expensive than the same item for men, despite similar production costs.

• Services: Haircuts, dry cleaning, and car repairs can all show pricing discrepancies. While men may get their hair cut more often, women often pay hundreds for a single visit.

We’ve even had conversations in our office about the difference in car servicing experiences. Whether it’s subtle upselling or assumptions about knowledge, some women report being quoted more or offered unnecessary add-ons.

While the pink tax is one side of the story, the gender pay gap is the other. In New Zealand, women currently earn around 92 cents to every dollar a man earns. Although the gap has halved since the 1980s, the reality is that women are often earning less and paying more.

When you consider both together, the financial impact becomes more serious. Less income and higher expenses means less money available for savings, investing, or repaying debt.

So, what does this mean over the long term?

One study (adjusted for New Zealand and inflation) found that over a 60-year adult lifespan, the total cost of the pink tax could exceed a quarter of a million dollars per woman—just in consumable goods. That’s a huge number. It’s also money that could have been invested, used to grow wealth, or provide financial security in retirement.

Thankfully, you can make some practical changes straight away:

• Compare before you buy: Check the men’s version of your products. Are they cheaper? Could they work just as well?

• Question pricing: When booking services or receiving quotes, don’t be afraid to question discrepancies.

• Vote with your wallet: Support brands and businesses that don’t mark up products based on gender. Every dollar is a vote for how you want the market to behave.

Ultimately, awareness is the first step. Once you know what to look for, you’re in a better position to challenge it—and make smarter spending decisions.

• The pink tax in New Zealand refers to the higher prices women pay for many everyday items and services.

• It shows up in areas like personal care, clothing, and haircuts—sometimes for no reason other than marketing.

• When combined with the gender pay gap, this creates a significant financial disadvantage over time.

• Over a lifetime, the cost of the pink tax can exceed $250,000 per woman.

• Small changes—like switching products, asking questions, and spending consciously—can help reduce the impact.

If you’re looking to get more intentional with your spending or want to understand how everyday costs are impacting your long-term financial goals, get in touch with the Lighthouse Wealth team today!

If you’d like to learn more, check out these other episodes below