By: Maya C and Kris G
March 2023
April is Financial Literacy Month in the United States, making this an especially relevant time to discuss the impact of economic and financial abuse on survivors of domestic abuse. Financial abuse is a tactic used by a perpetrator to control and prevent a survivor’s access to money and other financial resources, which limits their independence and increases their dependence on the abuser. Like other forms of abuse, it can take many forms and often begins subtly and progresses over time. This post is aimed at identifying signs of financial abuse, examining its impact, and giving resources on ways to get help.
The term domestic violence or domestic abuse encompasses several behaviors that an abuser may use to control and coerce a survivor. These behaviors can include any combination of physical, emotional, psychological, sexual, and financial abuse. As with all forms of abuse, financial abuse can involve both perpetrators and survivors of any background or socioeconomic status.
Of these forms of abuse, financial abuse is the most commonly experienced and the least frequently recognized tactic of domestic abuse. Financial abuse occurs in 98% of abusive situations (Adams, 2011). However, the National Coalition Against Domestic Violence (NCADV) found that 78% of Americans don’t consider financial abuse as domestic violence. Possibly because of the misconception that abuse only occurs if it involves physical harm. Additionally, a 2018 study by the Allstate Foundation found that 50% of those surveyed were unaware of any impact financial abuse would have on survivors of domestic abuse.
Here are signs of financial abuse to look out for if you think you or someone you know may be impacted by abuse (Women’s Health, 2021).
It’s important to note that all of the above signs/tactics are purposeful decisions made by the abuser to exert power and control their victim. This abuse is often gradual and subtle so everything the abuser does can be explained. None of this is your fault.
Some questions to ask yourself to identify financial abuse are: does your partner steal money from you or your family; make you feel as though you don’t have a right to know about finances; forbid you to work; overuse your credit cards or refuse to pay bills; or prevent you from obtaining credit cards/a bank account?
This power and control wheel is adapted from the Canadian Center for Women’s Empowerment to demonstrate the various tactics an abuser may use to exert power and control.
This list is not intended to be an exhaustive list of all tactics of abuse. Every person encounters a different situation and has different and complicated needs to safely get out of and remain out of that situation. That is why HAVEN has a 24/7 free, confidential hotline so an advocate can support you and your specific situation. If you or someone you know is or has been impacted by domestic abuse call 603-994-SAFE for judgement-free, empowering support.
The impacts of financial abuse can be devastating. In the short term, there is limited access to using or acquiring assets such as a car; an inability to obtain safe, affordable housing; and a fear of homelessness and hardship.
Survivors of other forms of abuse and violence may experience financial burdens as well. For example, after being sexually assaulted, 50% of survivors from a 1981 study either lost or left their jobs (Ellis, 1981). The 2006 National Crime Victimization Survey found that 3 in 10 stalking victims accrue out-of-pocket costs, such as attorney fees, replacing or repairing damage to property, childcare costs, moving expenses, or changing phone numbers. According to Baum et. al., about 13% of victims incurred out-of-pocket expenses exceeding $1,000 (2009).
Long-term consequences of financial abuse may span months, years, or decades. Survivors of financial abuse lose a million days of paid work each year (National Center for Injury Prevention and Control, 2003), and healthcare costs are 42% higher for survivors of domestic abuse (McLean et al., 2018).
There are barriers to obtaining lasting safety and security for survivors due to lack of access to financial resources. Survivors may have to overcome ruined credit, find work despite a sporadic or a general lack of employment history, and/or manage legal issues due to the actions of the abuser. Women living in poverty experience domestic violence at twice the rate of those not living in poverty, which highlights the cyclical relationship between abuse and financial hardship (McClean et al, 2018). The reported leading cause of homelessness was domestic violence among unhoused women in the United States (NNEDV, 2018).
So what does a financially healthy relationship look like?
4 Steps to Create a Financial Safety Plan:
While in a relationship:
When leaving a relationship:
Financial abuse is a widespread and devastating issue, but there are resources available. If you find yourself in a financially abusive situation, HAVEN advocates can help safety plan with you. Additionally, an advocate is available to provide resources on topics such as budgeting, building and repairing credit, and managing debt if requested. See below for information on reaching out to HAVEN.
If you are no longer in immediate danger but are overwhelmed by the current state of your finances, whatever you are feeling is valid. Just remember—debt is morally neutral and what you did or did not do has led you to where you are now. HAVEN is here to support you in your journey to financial wellness, whatever that may look like for you.
HAVEN offers support, information, and access to area resources to anyone impacted by abuse and can support you if you wish to report to law enforcement. Anyone can access HAVEN advocates 24 hours a day, seven days a week, for support through our hotline 1 (603) 994-SAFE. Not comfortable using the phone? We also now have a “chat with an advocate” via our website where during our office hours, Monday-Friday, 9 AM – 4 PM, you can use an instant messaging feature to talk with an advocate at https://havennh.org/! Reach out at any time. We are here to help.
References
Adams, A. E. (2011). Measuring the effects of domestic violence on women’s financial well-being. Center for Financial Security, University of Wisconsin-Madison. Issue Brief, 5, 1-6.
Baum, K., Catalano, S., & Rand, M. (2009). Stalking victimization in the United States. U.S. Department of Justice, Office of Justice Programs. Retrieved from https://www.victimsofcrime.org/docs/src/baum-k-catalano-s-rand-m-rose-k-2009.pdf?sfvrsn=0
Canadian Center for Women’s Empowerment. (2022, July 14). Economic abuse power control wheel. CCFWE. Retrieved from https://ccfwe.org/economic-abuse-power-control-wheel/
Ellis, E. M., Atkeson, B. M., & Calhoun, K. S. (1981). An assessment of long-term reaction to rape. Journal of Abnormal Psychology, 90(3), 263.
McLean, G., & Bocinski, S. G. (2020, October 30). The economic cost of intimate partner violence, sexual assault, and stalking. Institute for Women’s Policy Research. Retrieved from https://iwpr.org/iwpr-general/the-economic-cost-of-intimate-partner-violence-sexual-assault-and-stalking/#_edn13
National Center for Injury Prevention and Control. (2003, March). Costs of intimate partner violence against women in the United States. Centers for Disease Control and Prevention. Retrieved from https://www.cdc.gov/violenceprevention/pdf/ipvbook-a.pdf
National Network to End Domestic Violence. (2018). Domestic violence, housing, and homelessness. NNEDV. Retrieved from https://nnedv.org/wp-content/uploads/2019/07/Library_TH_2018_DV_Housing_Homelessness.pdf
Pennsylvania Coalition Against Domestic Violence. (2023, February 27). Financial abuse. PCADV. Retrieved from https://www.pcadv.org/financial-abuse/?utm_source=twitter&utm_medium=social&utm_campaign=PayEquity&utm_id=FinancialLiteracy
Salamone, N. (2010). Domestic violence and financial dependency. Forbes
Sharp, N. (2008). ‘What’s yours is mine’ the different forms of economic abuse and its impact on women and children experiencing domestic violence. Refuge
United States Department of Justice. (2009, January 16). National Crime Victimization Survey: Stalking Victimization Supplement. Retrieved from https://doi.org/10.3886/ICPSR20080.v1.
Women’s Health. (2021, February 15). Financial abuse. Office on Women’s Health. Retrieved from https://www.womenshealth.gov/relationships-and-safety/other-types/financial-abuse