Financial Literacy for Survivors

By: Simone Wimberly

Financial abuse is a form of domestic violence. It often goes undetected by the victim, especially in its earliest stages. However, identifying financial abuse in romantic relationships is imperative as it can be one of the first signs of dating violence. Financial abuse is also known as economic abuse. It occurs when “one intimate partner has control over the other partner’s ability to access, acquire, use, or maintain economic resources, which diminishes the victim’s capacity to support themselves and forces intentioned dependence.”

Many victims of financial abuse feel that they cannot leave their partner because they will not be able to financially support themselves or their families alone. If they end their abusive relationships, they may face difficulty finding affordable housing, food, or transportation. Victims with children face more financial obstacles. After years of abuse, those who do leave these relationships are highly likely to return to their abuser because establishing financial independence after years of financial abuse can be extremely difficult and may feel impossible.

According to Forbes Magazine, four common types of financial abuse can occur within romantic relationships:

• Abuser “Takes Care” of Finances - It may be normal to have one person managing the finances in a relationship; however, when only one person is in complete control and refuses to allow the other to access information or money in joint accounts, this is financial abuse. Victims would not access money to purchase resources or spend unless their abuser lets them.
  
• Employment Sabotage - When the abuser does not want their victim to have access to their income, they will intentionally sabotage their job, so the victim is either fired or quits. Examples of employment sabotage include harassing the victim at their workplace or distracting or abusing victims before important work events to interfere with their work performance. Additionally, abusers will not permit the victim to find a new job to ensure the victim remains dependent.
  

• Economic Exploitation - As mentioned, some abusers intentionally ruin victims' credit scores to trap them in abusive relationships. This tactic is a form of economic exploitation that can often occur without the victim knowing. Refusing to pay bills under the victim's name can affect them years down the line because victims may be unable to take out loans or mortgages due to bad credit history.
  

• Coerced Debt - Coerced debt is similar to economic exploitation. However, the difference is that the abuser threatens or manipulates the victim into taking on debt themselves. This tactic is a more complicated form of abuse because victims will have a difficult time proving that they did not consent to the debt they’ve found themselves in since they made the transactions themselves.
  

 
Every victim wants to achieve financial independence, which is the gateway to living their best life. Financial independence may not seem like a revolutionary concept. However, people should not take it for granted. Not everyone has the privilege of financial independence. Women, for example, have been historically marginalized in the Western economic system. As discussed in previous posts, the consequences can be detrimental. Financial independence is a powerful tool with many benefits. Having control of your finances, the ability to support yourself financially, and knowledge about how to manage your finances give you the freedom to make choices that are best for you.

If you or someone you know is experiencing domestic violence and/or sexual assault, call our confidential hotline at (317) 731-6140. Victim advocates are trained to provide free help, referrals, and resources for those in need. There is hope for survivors. In the case of an emergency, please call 9-1-1.

References:
Forbes, 4 Warning Signs Of Financial Abuse—And How Victims Can Recover
https://www.forbes.com/advisor/personal-finance/signs-of-financial-abuse-domestic-violence-awareness/
WomensLaws. org, Financial Abuse
https://www.womenslaw.org/about-abuse/forms-abuse/financial-abuse