Financial planning for the LGBTQ+ community: 5 inclusive tips for all

Managing personal finances is important for everyone, and LGBTQ+ communities may have additional specific needs that have to be considered. By identifying shared obstacles, we can create an environment that provides inclusive wealth-building solutions. Let’s explore financial planning for LGBTQ+ folks and the resources we need to achieve our dreams and transform them into strategic plans for success.

No matter who you are, there's a price tag attached to starting a family. For the LGBTQ+ community, that price tag tends to be higher, so consider doing some additional planning that aligns with the resources you'll need for your family-building pathway.

From hundreds of dollars for donor material to thousands of dollars for IVF, surrogacy and adoption, costs can quickly add up. Legal expenses must also be factored in for things like establishing parental rights or estate planning to protect your family, which can vary from state to state.

Tip #1: Leverage culturally competent financial education and guidance.

With professional resources at the ready, you won't have to tackle this major life milestone alone. This type of expertise can help you budget, establish a savings plan and even start saving for your child's education. Financial professionals may also have established relationships with medical and legal resources you may need later on, including fertility clinics and attorneys specializing in LGBTQ+ family building.

A bonus: Financial pros can also help you weigh the benefits of personal loans, understand and take advantage of relevant employment benefits and point you in the direction of other types of financing resources, such as grants, to bridge any savings gaps.

While interest rates and home prices don't discriminate, substantial data show that society may — and the LGBTQ+ community often bears the brunt of it.

A 2020 study from the Williams Institute at the UCLA School of Law found that not only does our community have lower rates of ownership, but we also face discrimination and stigma that can prevent us from accessing safe and affordable housing. And while we do well when it comes to building thriving communities, most tend to be in cities with high costs of living.

Tip #2: Build your homebuying strategy with a sound budget and a lender with a proven track record of support for the LGBTQ+ community.

As part of our homebuying strategy, we need an ironclad budget to transform ourselves into buyers who simply cannot be ignored. A budget can help us bring the credit history and down payment we need for a mortgage to the table, and with a lender that welcomes us and our families with open arms.

Starting your own business comes with a mix of emotions, including hope and excitement. But a 2022 study from the Center for LGBTQ Economic Advancement & Research and the Movement Advancement Project paint a different picture for LGBTQ+ business owners: Small business funding can be difficult to come by. Forty-six percent of small business owners in the LGBTQ+ community reported receiving none of the funding they applied for, compared to 35% of non-LGBTQ+ owners. Nearly 33% of those business owners also report that funding was denied because lenders didn't finance “businesses like theirs.”

Tip #3: Base your business borrowing with lenders committed to LGBTQ+ community outreach.

As you take your first or continuing steps along an entrepreneurial path, know that you have a choice in lenders and you're not alone. Banks like Citizens and organizations like the U.S. Small Business Administration make it our business to maintain an active outreach to the LGBTQ+ community and can help you access the funding you deserve. Your goals deserve designated support from a financial planning or strategy partner who will help you navigate all your business funding options and find the solutions that help your ideas shine.

How our community accesses gender-affirming care is constantly in flux — in some cases, we can’t access it at all. To keep ourselves safe and protect our mental health, we need reliable access to healthcare that some states make difficult or impossible to access. Hormone and drug therapies, surgeries and counseling are all life-saving care that can quickly add up.

Tip #4: Leverage every possible resource to save for, pay for and protect your health.

Resources like HSAs and FSAs are readily available — including their tax advantages — to save and pay for the care we need. Gender-affirming counseling and surgery are eligible expenses for both account types. Prescription medications may be covered by your existing health plan, and if not, can always be paid for using your HSA funds.

It's crucial to understand your health plan when considering employment. You’ll also want to review any prospective employer’s career page to learn about their initiatives that support inclusion and belonging.

Don't hesitate to ask for a full breakdown of coverages for gender-affirming care. If you're unclear about your benefits through your current employer's health plan, a call to the customer service number on the back of your card can help you sort things out and avoid unnecessary out-of-pocket costs. For tailored guidance, talk to a qualified financial professional who can help you review workplace benefits and determine if you have access to ancillary coverage.

LGBTQ+ individuals and couples who don't have children may have fewer moving parts to wealth, retirement and estate planning. However, having more disposable income to build wealth also proves a challenge. We need strategies to build and manage our wealth so that it serves our long-term goals, insulates us from potential wage-related discrimination challenges and contributes to the lives we envision.

Tip #5: Remember that you don't have to have the answer. Just find someone who does.

As you begin to build wealth, it's important to find a partner or advisor who can help you manage your finances — a financial advisor who understands our community and financial challenges, and has the expertise you need to build a strategy that grows with you and your wealth. They can also help build a plan to pay for elder care to protect your rights and dignity as you age.

Pride in who we are is a year-round endeavor that never takes a day off. That's why at Citizens, we put our unwavering support behind the LGBTQ+ community as part of our ongoing work to build strong communities.

We understand the challenges that the community faces through every life stage — and when it comes to financial planning for LGBTQ+ folks, we know that an expert financial partner who embraces you and your goals can make a meaningful difference.