WOMEN, MONEY, POWER | How much does it *really* cost to be a woman?

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Do you know the history of International Women’s Day?

The first movements began in 1848 – women were barred from speaking at an anti-slavery convention in America, and so two American women, Elizabeth Cady Stanton and Lucretia Mott, gathered a few hundred people with a Declaration of Sentiments and Resolutions that demanded civil, social, political and religious rights for women.

Then, in New York in February 1909, women went on strike against the garment-manufacturing working conditions in New York.

The following year in Copenhagen, the Socialist International established a Women’s Day to honour the women’s rights movements and start a universal suffrage. 

In 1911, Women’s Day was celebrated in countries around Europe, demanding rights to work, vocational training, and ending discrimination on the job. In 1913-1917 women gathered to protest war. 

Now, it’s the United Nation (UN)’s agenda to achieve gender equality and empowerment for women and girls around the world – whether it be from preventable pregnancy-related causes (800 women die everyday), domestic violence (1 in 3 women experience physical or sexual violence), girl’s education, and women in the workplace. 

For us at Travel Money Oz, it’s women in the workplace and the gender pay gap that we can speak to, and we’ll leave the other important issues to the experts. 

After all, we’re money people!

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The latest Australian data (as of 2023) shows women are earning 87 cents to the male dollar.

The 2023 Australian Bureau of Statistics (ABS) report states that the average weekly earnings for women, across all industries and occupations, comes to around $1653.60. For men, it’s an average of $1907.10.

That’s $253.50 difference per week, or, over the course of the year, $13,182.00.

To put it into context – 

Say you enter the full-time workforce at 22 years old and retire at 67.
If nothing changed (the pay gap, no career breaks, etc.) and you worked for 45 years, that would equate to a $593,190 difference between men and women. 

What could (more than!) half a million dollars buy you?

Well, for us, if we had sudden windfall of $600K, it’d obviously go towards a holiday.

Given that the average Australian traveller holidays overseas for about three weeks, and spends about $4750 on the holiday– or at least they did in pre-covid times – then that $600Kish difference could mean 125 three-week holidays… or a very comfy world trip with plenty left over.

Or, you know, buy a house. 

Of course, this does not take into account living expenses over the years. Most likely, this money would be eaten up by bills, rent, mortgages, and Uber Eats (although we recommend reading this blog for some tips to saving on daily expenses!). 

But even so, it puts the average man in a much more comfortable position to live their daily lives, compared to the women. 

And even if it were eaten up by the less glamorous parts of life, not many would say no to having $600K to cover it!

It was worse last year.

Half a million dollars, would you believe it, is a drastic improvement on 2022, in which women were paid 77c to the $1 – earning about $26,000 dollars less than men per year… or $1,170,000 over the course of working life. 

At this point, you’re a literal millionaire in difference.
$1M could fund 246 holidays. Or a nice house to retire in. Or, well, a lot of things.

Luckily it’s improved over the year.

But still, $600K is a lot to be losing out on.
(If you disagree, feel free to deposit that $600K straight into my bank account).

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Salary isn’t the only thing women are losing out on.

Superannuation isn’t so super for women – that’s the steep price of unpaid labour.

Because women are earning less, they’re also retiring with less superannuation – according to the 2022 research, with 42% less super compared to men.

In dollar terms, the Australian Institute’s Centre of Work 2022 report states that women earning the median wage earn $136,000 less in superannuation, retiring with about $393,676 in super – which is $151,000 below what’s considered a “comfortable retirement.”

And shockingly, 1 in 3 women will have no money in their superannuation fund – leaving many older women in poverty. 

And this is credited to the unseen, unpaid labour of women.

Women are often expected to be the caregiver who takes parental leave to care for the child, which impacts earning potential.
Career breaks and gaps in the resume make it difficult to re-enter a competitive workforce, and, they don’t earn superannuation during this time.

Hopefully there’s a future in which this will change.

Australian Institute of Superannuation Trustees CEO Eva Scheerlinck is advocating to introduce super on paid parental leave – which would allow parents to continue building their retirement savings while taking time out of paid workforce to care for children – but as it stands at present, parents (more often than not women) who take time off for family duties fall behind.

Back to the cost of unpaid labour - $650.1 Billion Dollars.

That’s the monetary value of unpaid care work in Australia as estimated by the WGEA. And studies show that this burden is shouldered primarily by women.

33% of women with children spend over 20+ hours per week, compared to 17% of men with children.

More than 25% of women spend 10hrs of indoor housework compared to 8% of men, and even with outdoor labour, often presumed to be dominated by men, there’s only a marginal difference with 7% of men spending 10+ hours of week, and 6% of women performing the same.

More than 50% of women spend 5+ hours on indoor housework, compared to 28% of men doing the same, and women also labour in the kitchen – with 54% of women spending 5+ hours a week cooking compared to 30% of men.

This demand for unpaid labour impacts employment quality – women take on more part-time and casual roles to shoulder this unpaid workload, which reduces current income, superannuation income, and limits promotional opportunities and long-term earning potential.

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So, what’s the “Pink Tax?”

It’s not a real tax… although the tampon tax was. 

Luckily, the tampon tax was abolished in 2019, but until that point, women were paying $30+ million dollars per year in taxes on feminine hygiene products… because bleeding once a month was considered a “luxury” (whereas condoms, lube, sunscreen, and nicotine patches were exempt from this as “medical necessities”).

While yes this tampon tax is gone, there is still a GST-tax for breastfeeding products, nursing systems, and other motherhood-related items.

And HuffPost estimates the full lifetime cost of periods (from feminine hygiene products, new underwear, pain relief, and chocolate) to be around $19,000. And that was in 2015, so add to that inflation and the rising cost of living. 

It could be a lot less too – according to The Economist, profit margins on feminine hygiene products is around 50%.

The Pink Tax works a little different.

The Pink Tax is a marketing tactic – pink it or shrink it – making gendered items more expensive for women. It spreads across pretty much all products and services – from haircuts, dry cleaning, car services, razors, soap, shampoo, deodorant, clothing.

One of the biggest case studies for this was the 2012 Bic “For Her” pen campaign.
A pen is a pen… but these were marketed at women, costing 70% more than regular pens. Because they were pink and “designed for women’s hands.” 

You’d think that’s absurd, but women from birth are groomed to spend more.

In Australia, 2019 research from AMP and a 2016 investigation by the Times analysed prices and found that women on average pay:

29% more for razors
16% more for body wash
11% more for shampoo
12% more for underwear
9% more for multivitamins
5% more for jeans
50% more for income protection
… and double for dry cleaning (men’s tops between $5-7, women’s tops between $8-14).

Not to mention contraception.

The pill can cost up to $304 per year, while condoms would be about $197 per year.

Now at Travel Money Oz, we believe in using protection with our Rate Move Guarantee.

And of course, that doesn’t discriminate based on gender.

But the fact that even sex life costs women more than men? Now that doesn’t seem fair.

On average, the Pink Tax ends up costing women $1300 extra each year. 

For women in Australia, the average life expectancy is around 85 years.
If a woman was to pay her own way from 18-85, this would mean she pays $87,100 more in Pink Tax than her male counterpart over the course of her life. Plus the $19,000 for feminine hygiene products.

Add to this, the social pressure for women to look “presentable” – including for job interviews and in the workforce, meaning women have to spend on high-cost items like makeup, hair products, and clothing that their male colleagues most often do not.

Research shows that Australian women spend on average $300 a month, or $3600 a year on beauty (whether that’s haircare, skincare, makeup, nails etc.). Say this from 18 years old (though we know makeup is being worn by increasingly younger children) until retirement at 67, that would cost $176,400. 

So how much does it cost to be a woman?

Overall, it would cost the average woman (keeping in mind this is just a generalised example), $282,500 more than the average man in her lifetime. 

Back to Brendan vs Demetria – if a woman had invested the monthly costs of being a woman (from pink tax to period products to beauty products), this would be about $448.33 per month of investments (this is just averaged out of course). Using the same compound interest example from earlier, this would be a lifetime value would equate to $3,629,303. 

Which brings the total loss of opportunity to $12,679,759.

Over $12.5 Million Aussie Dollars. 

And they say there’s no gender gap.

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One way, of course, is to be savvy with your spending – unlearning what women have been conditioned to believe for years – and avoid the Pink Tax.

Now we’re not gonna tell you that you shouldn’t buy what you want to buy. You’ve worked hard for your money, so you should spend it on what you like! 

But here are a few tips if you want to spend less (on products that are practically the same):

1. Look for equivalent products in the men’s section and compare the prices.
   Often men’s products will be cheaper but do the job just as well!
    
2. Make sure you double check the sizes too.
   The “pink it or shrink it” tactic means women’s items might be priced the “same” but for a smaller volume. Get your money’s worth!
    
3. Shop around!
   Look for services (like dry cleaners, insurance providers, etc) to make sure they don’t charge women more, get a few quotes to make sure you’re not getting ripped off, and support brands that offer gender neutral pricing. 
    
4. Negotiate.
   Especially for things like income protection, insurance, etc. that have premiums for just being a woman – finance experts say to negotiate a better deal because providers would rather keep you as a customer!
    
5. Call it out!
   Contact companies that have discriminatory pricing, call them out on social media, tell your friends, start a ruckus. Eventually, if you’re loud enough, they’ll have to listen.

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We were lucky enough to get advice from women at the top of the travel and money industries on how to succeed in your career.

This included a Flight Centre hosted panel with Mel Waters-Ryan, the CEO of Supply for Flight Centre; Yvette Thompson, GM of Partnerships for Intrepid Travel; Ann Elliot, Group GM Sales for Rex Airlines; as well the guest speakers from the She’s On The Money event: Boss Magazine’s Young Executive of the Year, Felicity Furey, and Australian comedian and Aboriginal advocacy speaker Steph Tisdell.

This is what they had to say…

How has the workforce changed for women?

INTREPID TRAVEL – Yvette Thompson

For the last five or six years, Intrepid has been championing women – this accelerated when Intrepid became certified B-Corp, which really pushed the drive and held them accountable. Since then, Intrepid has been making big changes and ensuring their passion for inclusivity is ingrained in all areas – from people (more women in Board and Management positions as well as more women tour leaders), to product, to marketing (ensuring Intrepid are marketing to ALL women with quotas for representation of BIPOC, Women, Plus Size, LGBTQIA, etc.). Always progressing, Intrepid also launched a work-away model where for two weeks every year, their staff can work from anywhere around the world!

FLIGHT CENTRE – Mel Waters-Ryan

71% of all Flight Centre staff identify as women, and 20% of women at Flight Centre are in a leadership role – in fact, 54% of staff at Area Leader positions and above are women! Mel Waters-Ryan attributes this to the fact that the culture of Flight Centre feels like home, is a forgiving workplace, and women often choose workplaces they feel looked after. She’s advocating for a higher percentage of women in leadership positions.

What challenges in the workforce did you face as women, or do women often face, and how do you overcome it?

INTREPID TRAVEL – Yvette Thompson

Recognising your own biases and blind spots. Sometimes, you don’t realise the unconscious prejudices you have until you’re confronted. In those times, really listen. Have the conversation, take it on board, and correct it. 

FLIGHT CENTRE – Mel Waters-Ryan

Women often struggle more than men when it comes to interviews, as men tend to interview more confidently than women. When it comes to hiring, it’s important to check your bias – interviews are just a one-hour performance and hirers can be swayed by this and neglect the actual data. On the flipside, women really need to nurture their public speaking and interviewing skills – after all, performing is a skill, so develop it!

REX AIRLINES – Ann Elliot

One of the struggles Ann faced was speaking up about nepotism at a prior workplace, then leaving the company. It was “the best thing” she ever did. The lesson learned? Always use your voice and speak up when something’s wrong.

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What advice would you give women starting their careers?

INTREPID TRAVEL – Yvette Thompson

Networking is so important. Treat every interaction as a learning experience – ask questions and be curious! Say what you feel and what you think, and back yourself. Build up the people around you.

Make the most of every opportunity, and new opportunities will come along.

REX AIRLINES – Ann Elliot

Choose a mentor you admire. Ask for advice. Be honest and authentic – and don’t go with the crowd if you don’t believe in what they’re pushing. 

BOSS YOUNG EXEC OF THE YEAR – Felicity Furey

What will make the biggest difference? Collaboration. Working together accelerates and amplifies success – look at Steve Irwin for example. He collaborated with John Staitham to make the Crocodile Show, which was pivotal to the success of his mission and Australia Zoo. 

When influential leaders partner with grass-roots changemakers, the magic happens.
So find a mentor you look up to (they love being asked for help), take action, and turn up. Remember that you are valuable, and it’s a win-win, so be brave and ask!  

ABORIGINAL COMEDIAN – Steph Tisdell

It’s about bravery. How many times have you already been brave?
When you’ve been brave many times already, one scary task is no different to the tasks you’ve overcome before.

So get the number and speak up – people will rarely actually ask, so there’s more opportunity than you think!

Be brave, step into the room and ask. Be open to whatever comes – with no preconceived ideas about what the answer should be – and be okay with not getting the answer you want.

Also, be actively openhearted and openminded, raw, honest and vulnerable. Let them know this is what I can can bring to the table, this is what I can’t. This is what I believe in, and if you believe in it too, then invest in me so I can fight for what we believe in!

FLIGHT CENTRE – Mel Waters-Ryan

Pick up new skills and experiences – and move around more in your career. Women tend to stay in the same role for longer, but it’s important to be more dynamic and put your hand up to learn new skills (even if it’s just picking up new skills in the same role). 

Also, “learn how the cash register rings.” It’s important to understand how the money works – why customers are paying money for your good or service, and where the money goes afterwards, and have a good understanding of profit and loss. 

Have a good support network of other women. Mentor, sponsor and shepherd women you believe in, because women too often don’t advocate for themselves.

For the mums out there – outsource. Find out what tasks are taking away from quality time with kids and with work, and outsource so you get that precious time back to focus on what truly matters.

Finally, be curious and be brave. Forgive yourself for any mistakes and learn from it. And never compromise your empathy and compassion.

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So you’ve saved up your hard-earned money and are ready for a well-earned break.

Well, you’ve come to the right place!

Whether you’re planning a women’s retreat in a Swedish wellness centre, are headed on a Women’s Expedition with Intrepid Travel, we’ve got the foreign currency you’ll need for your holiday!

Come and see us in store and chat with our experts for tailored advice, or if you prefer, check out our online currency guides  and  inspirational blogs.

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