Networth and Chill: Tampons, Taxes, and Taboo – The Cost of a Period

In this episode of Networth and Chill with Your Rich BFF, host Vivian Tu engages in a candid and enlightening conversation with Nadia Okamoto, a social entrepreneur and co-founder of the nonprofit Period Inc. The episode delves deep into the multifaceted issues surrounding menstruation, including personal experiences, period poverty, the tampon tax, and the challenges of balancing ethics with profit in the business world.

1. Personal Experiences with Periods

Vivian opens the discussion by sharing her own struggles with menstrual symptoms, setting a relatable tone for the conversation:

"I have a headache, stabbing cramps, and muscle aches. And I'm guessing some of the besties listening already know what's going on. I'm on my period."
[00:08]

Nadia recounts her first period experience, emphasizing the lack of practical information provided to young girls:

"Nobody tells you how much blood it's gonna be. Nobody tells you it's gonna be goopy or have some solids..."
[03:21]

2. Understanding Period Poverty

The conversation shifts to the alarming statistic that 16.9 million people in the US live in period poverty, unable to afford essential menstrual products. Vivian highlights the financial burden, noting:

"On average, most people are spending anywhere between 20 to 40 bucks per month on period care, not even including the 4 to 7% tax..."
[01:24]

Nadia shares her personal awakening to period poverty at age 16, influenced by her family's financial struggles and interactions with homeless women:

"How have I never thought of this before? Like, huge privilege check that slapped me in the face."
[06:16]

3. Nadia’s Journey in Nonprofits and Public Sector

Nadia details her early activism, founding Period Inc. in 2014 to address the lack of access to menstrual products. Her drive is rooted in personal experiences and witnessing the hardships faced by others:

"We need to take down the tampon tax so that we can make the argument in other places for period products to be free in schools, in shelters, in prisons."
[33:56]

She also discusses her foray into politics, running for Cambridge City Council:

"I emptied my savings account into my own campaign... this isn't for me. I'm never running again."
[16:09]

4. Founding August: Transitioning from Nonprofit to For-Profit

Facing the limitations of the nonprofit model, Nadia transitions to entrepreneurship, founding August, a for-profit company aimed at revolutionizing menstrual products. She explains the challenges of product development and the necessity of raising capital:

"We had to raise capital. Then you have to think about the cost of how does it get here, what kind of checks does it go through?"
[25:34]

5. Addressing the Tampon Tax

A significant portion of the episode is dedicated to the tampon tax, a sales tax applied to menstrual products in many states. Nadia criticizes the tax as symbolic of deeper societal issues:

"The tampon tax is not going to solve period poverty because it's affecting people who already buy period products. But it does make a difference."
[32:36]

She emphasizes that removing the tax requires minimal effort from state budgets:

"It literally costs these states nothing to take it down."
[33:55]

6. Creating the Tampon Tax Back Coalition

To combat the tampon tax, Nadia spearheads the Tampon Tax Back Coalition, collaborating with other brands to refund the tax to consumers:

"We recruited about eight other brands, created the coalition. ... we all believe, and I think this is like the magic of female founders."
[36:12]

This initiative not only challenges the unfair taxation but also fosters collaboration among competing brands for a common cause.

7. Balancing Ethics and Profit in Business

Navigating the for-profit landscape while maintaining ethical standards is a recurring theme. Nadia discusses the importance of aligning with like-minded investors and turning down funds that don't match their values:

"If an investor thinks that's stupid, you know, impact is not the goal or impact shouldn't be part of the goal. They just aren't the right investors for us."
[38:18]

She highlights the shift in consumer expectations, especially among Gen Z, towards supporting brands with genuine social responsibility:

"We aren't the first brand at all to do this whole, you know, buy tampons, we donate tampons. Like that isn't new, which is exciting."
[39:53]

8. Gen Z Consumption and Brand Responsibility

Vivian and Nadia explore how Gen Z consumers deeply value authenticity and social impact in their purchasing decisions. Nadia observes:

"Gen Z, Gen Alpha consumers are very skeptical... it's about how do you not tokenize it and make it a DNA part of the brand rather than like something you do for clout."
[41:59]

This generation demands transparency and genuine commitment from brands, moving beyond superficial marketing tactics.

9. Personal Growth and Mental Health

The episode touches on Nadia's personal challenges, including her battle with burnout and mental health struggles. She openly discusses her time in rehab and its profound impact on her life and career:

"Going to rehab before the company launched was like the best thing in my life. And I think I'm like such a better founder because of it."
[28:24]

She emphasizes the importance of self-care and the balance between relentless hustle and personal well-being.

10. Empowering Relationships with One’s Period

Nadia shares how her activism has transformed her own relationship with menstruation. Instead of viewing her period negatively, she embraces it as an opportunity for authentic content creation:

"When I bleed through my clothes, my first thought is not, oh, shit, I'm embarrassed. It's, oh my God, this is such good content."
[51:17]

This shift not only empowers her but also fosters a sense of community among her audience.

Conclusion

This episode of Networth and Chill offers a comprehensive look into the intersection of personal experience, social activism, and entrepreneurship in the context of menstrual health. Nadia Okamoto's journey from witnessing period poverty to founding a purpose-driven company underscores the importance of aligning business practices with ethical values. The discussion also highlights the evolving expectations of consumers, particularly Gen Z, who seek authenticity and genuine social impact from the brands they support.

By addressing systemic issues like the tampon tax and advocating for accessible menstrual products, both Vivian and Nadia emphasize the critical need for societal change. This episode serves as an inspiring blueprint for combining financial acumen with social responsibility to create meaningful and sustainable impact.

Notable Quotes:

• "I was very lucky. Cause I grew up with a single mom and two sisters, so we had an all-girl household."
  - Nadia Okamoto [04:06]

• "The tampon tax is not going to solve period poverty because it's affecting people who already buy period products. But it does make a difference."
  - Nadia Okamoto [32:36]

• "If an investor thinks that's stupid, you know, impact is not the goal or impact shouldn't be part of the goal. They just aren't the right investors for us."
  - Nadia Okamoto [38:18]

• "When I bleed through my clothes, my first thought is not, oh, shit, I'm embarrassed. It's, oh my God, this is such good content."
  - Nadia Okamoto [51:17]

This summary captures the essence of the episode, providing insights into the challenges and triumphs associated with menstrual health advocacy and socially conscious entrepreneurship. For those interested in the nuances of how personal experiences can drive impactful business ventures, this episode offers valuable perspectives.