Does consumer debt differ by gender?

Despite attempts at financial equality, gender continues to impact nearly every aspect of personal finance, including earning, spending, investing and consumer debt.

Men on average earn more than women, allowing them to spend, save, borrow and invest more. Women tend to be more cautious with money, which makes sense since they have less of it. Data is not as robust for transgender and gender-diverse (TGD) individuals, but emerging research shows a pattern of even greater financial strain for this marginalized group as they work to overcome prejudices and early setbacks caused by a lack of financial support that cisgender peers typically receive from family.

Whatever your gender, being aware of the role gender plays in personal finance can help you better understand your financial hurdles and those others are facing.

Differences in the finances

Statistics only tell a small part of the story regarding finances by gender. Chromosomes, sex and gender expression do not affect someone’s ability to manage money, build good credit, use debt responsibly or invest for the future. However, external factors and societal pressure assigned to gender roles do have a financial impact.

On average, women are still responsible for the lion’s share of family caregiving and household labor, negatively impacting their lifetime earning potential. Women also tend to suffer more severe financial consequences of divorce. By contrast, men feel socially pressured to exude wealth and status regardless of their success and frequently go into debt to keep up appearances.

Transgender individuals typically take on more debt when starting out than their cisgender peers, likely due to a lack of financial support and living accommodations provided by family. This puts transgender or nonbinary individuals in a more financially precarious position than cisgender men or women.

Earning differences

After decades of progress in narrowing the gender wage gap, 2023 saw the gap widen significantly for the first time in 20 years according to the annual Income in the United States report from the U.S. Census Bureau.

Women who work full-time were paid about 82.7 percent of a man’s salary in 2023, down from 84 percent in 2022. Full-time male workers made a median salary of $66,790, while full-time female workers made $55,240. This results in a difference of $11,550 per year — a gap that only widens further for women of color, women with disabilities and women working part-time.

The median income for all American men in 2023 was $56,280, while the median for all American women was just $42,110.

Earning information specific to TGD individuals is not available.

Spending differences

Spending tends to be closely correlated with income, with higher earners spending more.

The Bureau of Labor Statistics’s latest Consumer Expenditure surveys found that the average single woman spends $42,174 annually, while the average single male spends $43,299.

Single men spend more than single women on food, transportation and entertainment. Single women spend more on housing, apparel/services and healthcare.

It is worth noting that the average age of single women from the survey is 60, while the average age of single men is 52. Age is an important factor in earning power and spending habits. Cost of living, dependents, disabilities, and other considerations also influence income and expenditures.

There is no data from the Bureau of Labor Statistics breaking down income and expenses for transgender or nonbinary individuals.

Borrowing differences

Experian compared debt balances among men and women and found that men carry more debt in all categories except student loans.

On average:

• Men have 16.3 percent more auto loan debt than women.
• Men have 2 percent more credit card debt than women.
• Men have 9.7 percent more mortgage debt than women.
• Men have 20 percent more personal loan debt than women.
• Women have 2.7 percent more student loan debt than men.

Consumer debt information specific to TGD individuals is not available.

Credit score differences

The Equal Opportunity Credit Act largely prohibits using demographic information, including gender, in credit reporting, so it is difficult to evaluate credit scores by gender.

However, the Federal Reserve analyzed the credit scores of thousands of men and women in 2018. Its findings indicate that gender has little impact on credit scores, although the average man’s score is slightly higher than the average woman’s, controlling for age. For example, the mean VantageScore 2.0 for men aged 31-40 was 793 while the mean for women of the same age was 785. While this data is older, it’s unlikely that this disparity has changed significantly.

There is no reliable data differentiating the credit scores of nonbinary individuals.

Investing differences

Women are less likely to invest than men. A study commissioned by BNY Mellon Investment Management found that if women invested at the same rate as men, there would be more than $3 trillion in additional assets under management today.

BNY cites the gender pay gap, perceived risk of investing and lack of engagement as key factors for this disparity.

Anne-Marie McConnon, Global Chief Client Experience Officer at BNY Mellon Investment Management, said: “As women, we all have different hurdles to overcome to meet our individual financial goals. Some of these are influenced by demographics and personal circumstances but some are a result of how the investment industry has traditionally engaged with women.” In fact, 86 percent of asset managers acknowledge that their default target customer is male.

There is no information specific to the investment habits of TGD individuals.

Financial stress differences

Women are more likely to report feeling stressed by finances than men. In a recent Bankrate study, 46 percent of women say money issues have negatively affected their mental health, prompting feelings of anxiety, depression and stress. Only 38 percent of men report feeling the same financial stress.

Recent research from the International Journal of Consumer Studies found that transgender college students experience greater financial strain than their cisgender peers. According to the study, “TGD students had significantly lower financial optimism, financial self-efficacy and financial socialization than their cisgender peers.”

Discrimination in lending

Legislation has been implemented to prevent lending discrimination by gender.

The Fair Housing Act of 1968 prevents discrimination in mortgage lending, specifically based on race, color, national origin, religion, sex, gender identity and sexual orientation, disability and family status. It wasn’t until 2020 that federal protections were put in place to prevent housing discrimination based on gender identity.

Spending differences by gender

Type of spending

Single woman; Single man

Food $4,89;9  $5,302

Housing $17,093;  $16,309

Apparel and services $1,123;  $833

Transportation $5,170;  $7,066

Health care $4,131;  $3,038

Entertainment $1,899; $1,914

Borrowing differences

Type of debt Women; Men

Credit card balance $6,232; $6,357

Student loan balance $36,131; $35,188

Auto loan balance $17,747; $20,645

Personal loan balance $14,780; $17,716

Home equity line of credit balance $42,746; $47,017

Mortgage balance $192,368; $211,034