According to the Center for Financial Security, nearly every domestic violence Bottom of Formsurvivor also experienced financial abuse. Also referred to as financial exploitation, this domestic mistreatment can result in victims losing access to their financial resources along with having their credit ruined.
A financially abusive relationship may be characterized by:
- the abuser refusing to share financial information and taking control of the family finances.
- the abuser uses an intimidation tactic of quickly getting angry when asked about family finances or major purchases.
- the abuser puts the victim on a very low allowance, which may not even be enough to cover basic needs.
- the abuser discourages the victim to have a job or harasses the victim at work, which can result in losing their job.
- the abuser makes late payments or no payments to ruin the victim’s credit.
- the abuser forces a power-of-attorney agreement to legally steal money or property from the victim.
Financial abusers attempt to control the relationship by making victims feel powerless and unable to support themselves and their children. To avoid or escape financial abuse while building self-esteem and dignity, take the following actions:
- Obtain increased financial knowledge, which can allow a person to escape the abusive relationship.
- Monitor your credit report to determine your current situation and to plan actions to repair your credit.
- Find a safe place to stay with family, friends, or a shelter to connect to a support network.
- Clear your browser history, which would not allow the abuser to view your search activity when seeking help.
Financial abuse can occur in marriage and other relationships. Family members and caregivers may steal or misuse the funds of aging relatives.
For additional information on financial abuse, click here.
Teaching Suggestions
- Have students talk to others to learn about difficult financial relationships they may have encountered.
- Have students create a visual proposal (poster or slide presentation) with suggestions to avoid becoming a victim of financial abuse.
Discussion Questions
- How might a person become better aware of the signs of a financially abusive situation?
- Describe actions you would recommend to a person who faces a difficult financial situation.