Dear Younger Person, Today’s topic is “economic abuse”. You may not have heard of this term. But, it is a serious topic. Today, I want to give you some basic information on this problem, so that you can recognize it and avoid it.
What Is Economic Abuse?
Economic abuse is a form of domestic abuse, which is any pattern of behavior in any intimate relationship that one side of the relationship uses to gain or maintain power and control over the other side. So, specifically, with economic abuse, abuse involves controlling a person’s ability to acquire, use, and keep financial resources. The end game for the abuser is to gain control and maintain power over the victim.
Example Case of Economic Abuse
Introduction
Angela and her husband Gary have been married for 18 years. They have two high-school-aged children, a son and a daughter. Angela is a stay at home wife and mother and Gary is a manager in the field of engineering. They live in a four bedroom house in the suburbs.
Background
Initially, Gary appeared to be a supportive and collaborative husband. Both Angela and Gary worked, contributed to, and participated in managing household expenses. At the time of their wedding, in addition to working, Gary was in graduate school. Shortly after their marriage, they had one child followed by the other within a two year period. Because Gary was focused on graduate school and his career, he asked Angela to quit her job to be the primary caregiver for the children. Everything went well the first few years of that plan. However, over time, Angela noticed a shift in Gary’’s behavior towards money matters.
Some Examples of Incidences of Economic Abuse
Controlling Finances
Gary started insisting on taking full control of their joint bank account, claiming he was better at managing money, and claiming that it would free Angela to focus on the children. He would give Angela an allowance for groceries and necessities. But, soon he began questioning her purchases and making her feel guilty for spending money on anything beyond the basics. So, Angela stopped going to the hair salon and ended her membership to the gym.
Isolating Financially
Because Angela started feeling down about not being able to do things that she had been doing to take care of herself, she started looking for a job. Gary discouraged Angela from working full-time, citing the need for her to be available for the children. When she did find a part-time job, he constantly undermined her career aspirations and pressured her to quit the job, promising to take care of all expenses that she felt necessary. This made Angela financially dependent on Gary.
Sabotaging Financial Independence
Thanks to the increase in online jobs during the pandemic, Angela was able to find a possible job in which she would work online during the evenings. When Angela expressed interest in applying for the job, Gary dismissed her ideas as a waste of time and told her that she would probably fail at the job “because she had not done anything but play with kids recently.” Also, he refused to help in childcare during the hours she would need to dedicate to her online job in the evening.
Controlling Inheritance
Angela inherited some money from an aunt who had been widowed and who had no children. She inherited over one hundred thousand dollars. She deposited the money into a joint account that she had with Gary. The account was with an online institution that offered a higher interest rate than their local banks. Although the online bank offered investment accounts with which stock could be purchased, the couple did not have such an account with that bank.
One day Angela looked online at their joint bank account and found that the account had gone down by $100,000. Concerned that someone had stolen the money from their joint account, she called the bank. She was told that the money had been transferred from the joint banking account into a newly opened investment account, which did not have her name on it. When asking Gary about it, he said that he only moved the money so that it would grow, and that she did not need to have her name on it, because she was the listed beneficiary. He justified this by claiming he was managing their finances responsibly and that Angela should trust his decisions.
Manipulating Financial Information:
Whenever Angela asked for information about their financial situation or requested to see bank statements, Gary would become defensive and accuse her of not trusting him. He would provide incomplete or misleading information, making it difficult for Angela to understand their true financial standing. He would also change account passwords frequently, so that even when he gave her information, it was not useful or accurate for very long.
Impact of Economic Abuse
Some examples of the impacts of economic abuse include: emotional distress, isolation, and dependence.
Let’s look at how these relate to the example above.
Emotional Distress
Angela felt trapped and anxious, constantly worried about money and her future.
Isolation
Gary’s control over finances and discouragement of Angela’s career aspirations isolated her from friends and family who could potentially provide support.
Dependence
Angela’s financial dependence on Gary diminished her sense of self-worth and autonomy.
The above example case illustrates how economic abuse can operate. Angela’s case illustrates how economic abuse can manifest within a seemingly stable relationship, leading to profound emotional and financial consequences for the victim. It can be as damaging and controlling as other forms of abuse within a relationship. So, the first step is recognizing the behaviors that are part of this exploitation. So, I recommend that you learn more about the signs and symptoms of this type of mistreatment.
Key Takeaways
- Economic abuse is a form of domestic abuse.
- It can occur in several forms. For example:controlling finances, isolating financially, sabotaging financial independence, and manipulating financial information.
- Some examples of the impacts of economic abuse include: emotional distress, isolation, and dependence.
- Economic abuse can manifest within a seemingly stable relationship, leading to profound emotional and financial consequences for the victim
- The first step is recognizing the behaviors of an economic abuser.
- It is recommended that you learn more about the signs and symptoms of this type of mistreatment so that you can avoid it.
Final Words
So, my young friends…economic abuse…don’t perpetuate it on anyone else and definitely don’t let anyone do it to you.
Hugs,
Rich Mom
If you or someone that you know is experiencing economic abuse, you can call the National Domestic Violence Hotline at 1-800-799-SAFE (7233).
You can also check out this website:https://survivingeconomicabuse.org/i-need-help/
Would you like to read more financial wellness articles? Check out:
Why Have Multiple Streams of Income?
Looking for more financial resources? Check out the Rich Mom Poor Kid Resources Page.
Who is Rich Mom?
If you’re wondering who Rich Mom is, check out my “About Rich Mom” page.
Also, please note: I am not an investment advisor. Always do your own due diligence and research before investing. Check with your own investment advisor.
The information shared here is not intended as financial advice, just encouragement.