ARE YOU REALLY FINANCIALLY OK?
One in 6 women and one in 14 men’s finances are compromised by someone close to them. Spot the warning signs and turn things around…
Financial or economic abuse is the use of a partner, family member or friend’s financial assets to control or manipulate them.
“There are three primary ways perpetrators can inflict financial abuse: financial control, financial exploitation or sabotage of work or study, which limits economic opportunities,” says Associate Professor Jan Breckenridge of the University of NSW Gendered Violence Research Network.
So who does it affect and how can someone find their way out?
UNDERSTANDING YOUR SITUATION
Some of the main characteristics of financial abuse include withholding money, tracking the other person’s spending online, giving them no access to their own accounts or creating debts in their name. But it doesn’t always have to be so obvious.
“For instance, a perpetrator might change the password on joint accounts without providing the new one, or being asked to work in the family business with no pay,” says Professor Breckenridge.
“People affected by financial abuse may be isolated – they can’t go out if they have no money for petrol or public transport,” she says.
If financial abuse is occurring in a relationship, it can be a tactic of domestic and family violence (DFV) as well as a consequence following a broken relationship. “Some victims may not know about the financial abuse until they have left the relationship and attempt to live independently, but find they have debts in their name that they weren’t aware of, their account has no money in it or they’re unable to rent a property because they have no rental history,” adds Professor Breckenridge.
WHERE CAN YOU FIND HELP?
It’s important for someone going through financial abuse to recognise they’re not alone.
“There are several not-forprofit services available that can help someone who has been impacted by financial abuse, and there are specialist Community Legal Centres that provide services and legal representation to women affected by financial abuse,” says Professor Breckenridge.
Services include but are not limited to 1800RESPECT on 1800 737 732 or visit 1800RESPECT.ORG.AU, Financial Counselling Australia (FCA), and Women’s Information and Referral Exchange (WIRE).
“Some DFV services in your state or territory will have the capacity to provide referrals to an appropriate service for your situation,” adds the professor.
“It may also be helpful to contact your bank to see if they can assist you with immediate management of your account(s), loans and other financial services such as insurance and superannuation.”
The Commonwealth Bank, for example, is committed to improving financial wellbeing of Australians, including the most vulnerable.
“We’re investing in, and working closely with organisations that specialise in domestic and family violence to better understand the issue and demonstrate how we can best support people in vulnerable circumstances,” says Sian Lewis, Group Executive Human Resources at Commbank.
“We have a hardship team and if people are struggling to pay debt, we will work with them so they are in a suitable position to move forward.”
It can also be helpful to speak with a financial counsellor.
“Financial counsellors provide free, independent
and confidential information, support and advocacy to assist people who are experiencing financial difficulty,” says Professor Breckenridge.
If you suspect someone you know is suffering from financial abuse, perhaps reach out to them to see if they’re OK.
HOW CAN IT BE PREVENTED?
“The best advice I can give is to understand the warning signs of financial abuse and know what a healthy and respectful relationship looks like when it comes to managing money as a couple,” says Sian. “Always maintain some form of financial independence. This means knowing what bank accounts you have, where important documents are kept, knowing your PINS and passwords, ensuring you can manage any debts and keeping access to a rainy day savings fund should you need it.”
If you or someone you know is affected by domestic violence, please call 1800 RESPECT (1800 737 732). In an emergency, call 000.