Embarking on your financial journey as an LGBTQ+ young adult means more than just learning how to save or manage your finances. It’s about creating a life rooted in stability, authenticity, and resilience. In today’s rapidly changing political and economic landscapes, staying informed and empowered is crucial. This guide offers practical strategies tailored to the unique experiences and challenges faced by the LGBTQ+ community. Whether you’re just starting or rebuilding with purpose, these steps will help you take control of your financial future while staying true to who you are.
Budget With Awareness and Advocacy
Under the current administration, policies affecting health care, housing, and education may shift according to the Human Rights Campaign (hrc.org). So, it’s important now more than ever that you stay informed and build a flexible monthly budget that prioritizes essentials while accounting for possible changes in where you live, your health care coverage, or legal expenses. I recommend using LGBTQ+ inclusive budgeting tools or apps to help stay organized and in the community. Some examples include Queer Money®, YNAB, Enrich and Point of Pride.
You might also consider working with a CFP® professional who understands the unique financial realities of LGBTQ+ individuals to help you create a personalized and resilient budget.
Save Strategically for Gender-Affirming Care
Gender-affirming surgery or hormone therapy has been in the news and courts of many states. It can be expensive, and there are many changes happening that can make it difficult to plan. Since insurance coverage may be inconsistent as companies and states react to the new policies regarding DEI and LGBTQ issues, the need to stay up to date with the latest information available is critical. It's time to review your employer benefits plan and make sure you have some personal funds set aside in a savings account. With higher interest rates, consider high-yield options for savings accounts. You might also want to investigate local and national grants, nonprofit programs or crowdfunding platforms that support trans and non-binary individuals.
Build and Protect Your Credit
A strong credit score opens doors to housing, loans, and more. Keeping track of your credit should always be a top priority. If you need to create a credit history, start by opening a secured credit card that you pay off each month. Also, make sure you develop a habit of always paying your bills on time, as this helps to raise or keep your score higher. I recommend you consider freezing your credit to help with fraud prevention and monitor your credit report for issues or inaccuracies. The three credit bureaus, TransUnion, Equifax, and Experian, have several programs specifically to support the LGBTQ community, such as providing research and support through employee and other advocacy initiatives. They also offer tools and guidance to help you feel supported in many ways, including navigating credit building or name changes.
Create a Safety Net
Set aside an emergency fund to cover three to six months’ worth of expenses. You can start small. Developing the habit is the most important thing to do. We understand through research that LGBTQ+ youth may face higher risks of housing or job instability so, when possible, stay close to those who love and support you both emotionally and financially. However, an emergency fund gives you autonomy and a sense of security when facing unexpected challenges or transitions. Take a percentage of every paycheck and financial gift and put it away — not just for saving — but for a real emergency time. You will begin to feel more confident and gain more control over your circumstances with cash in the bank.
Plan for Long-Term Security
Start investing early, even if only a small amount. Explore Roth IRAs, which offer tax-free growth, and consider speaking with an LGBTQ+ affirming CFP® professional. Think about estate planning, especially if you're in a chosen family, to ensure your assets will go where you want them to.
Your identity is as important as your financial future. Taking these steps today helps you build a life of choice, dignity and freedom.
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