When Amrita Maharaj-Dube takes her five-year-old daughter shopping, the child is instantly attracted to anything pink and sparkly. But Maharaj-Dube draws a line when a pink unicorn or heart-branded item costs noticeably more than a similar product decorated with dinosaurs or spaceships.
“I started buying more gender-neutral colours for my children,” said Maharaj-Dube, who also has an eight-year-old son. “The black, the greys, the reds, orange and yellow—colours that are a bit more gender neutral (and) both my son and my daughter can use.”
Products marketed toward women and girls — from razors and shampoo to children’s clothes and personal care items — often carry higher prices than comparable items marketed to men or boys. This pricing disparity is commonly known as the “pink tax.”
What is the “pink tax”?
“Pink tax was a term coined in the ’70s to describe the difference in pricing between men’s and women’s products,” said Calgary-based Janine Rogan, a chartered professional accountant and author of the book, The Pink Tax. For decades disposable razors were a clear example: the same razor model sold for more when packaged in pink.
There has been some progress. Companies have adjusted pricing in some categories, and certain jurisdictions have removed sales taxes on menstrual products like pads and tampons to reduce inequity for people who need them. Still, Rogan notes that marketers and corporations frequently find ways to price products higher when they are aimed at women and girls, particularly in categories such as shampoos, lotions and beauty products.
Pushing back against the pink tax in Canada
Maharaj-Dube says she balances her daughter’s preferences with practical money choices. To satisfy her child while avoiding higher costs, she often turns to thrift stores. “I take her to the thrift store and (tell her), ‘Hey, you can pick out whatever you want,’” she said. “It’s at a fraction of the prices (and) I’m getting good value for money.”
Local neighbourhood Facebook groups and community swap pages have also helped her find hair clips, clothes and toys for much less. As a corporate communications manager at a mental health and addiction treatment centre, Maharaj-Dube said she and other parents are constantly looking for ways to save amid rising household costs.
Her personal choices extend to beauty and skincare. After experimenting with a multi-step skincare routine, she found the costs escalated quickly. She now uses DIY alternatives such as turmeric or Greek yogurt face masks and aloe vera treatments for hair and skin, aiming to reduce spending on expensive salon treatments and branded products. “I’ve been changing my spending habits and not giving into the marketing powers of the skin care and beauty industry,” she said.
There are other practical strategies to avoid gendered pricing. Samantha Sykes, a senior investment adviser at Raymond James Ltd., points out that skincare and grooming products marketed to women often come with higher price tags than similar items marketed to men. She advises shopping smart: consider dermatologist-recommended products that may be claimable through benefits, compare men’s and women’s product lines for similar formulations, and choose barbers for short haircuts when appropriate.
How the pink tax impacts retirement savings
Sykes warns that the pink tax doesn’t stop in working years — it can erode women’s retirement savings over time. When women repeatedly pay more for dry cleaning, haircuts, cosmetics, toiletries and even some entertainment options, those extra, recurrent costs reduce the ability to save for the future.
“The pink tax is literally chipping away at their retirement savings because they’re constantly being told they have to pay more for dry cleaning, for haircuts, for cosmetics, for toiletries and now, for (entertainment),” Sykes said. She also notes that some traditional financial advisers don’t always highlight how these ongoing expenses affect long-term planning for older women.
Her advice to clients is practical and nonjudgmental: be aware of the extra costs associated with gendered pricing and make informed choices. “I tell people: ‘I’m not shaming you for liking the pink shirt and the pink tools and the pink shoes … I’m just making sure that you are aware that you’re being taken for a ride,’” she said. “That’s OK if you can afford it.”
For those looking to reduce the impact of the pink tax, useful steps include buying gender-neutral or men’s versions of products when they are cheaper, shopping secondhand, seeking professional product recommendations from dermatologists, and prioritizing essential purchases over marketed luxuries. These approaches can help families keep more money in their budgets today and preserve savings for retirement tomorrow.
Read more about women and money:
- Untangled Money’s Kristine Beese on why financial plans aren’t gender-neutral
- 5 great personal finance books by women
- How financial and estate planning can reduce money stress for women
- Women and money: Taking control of your personal finances