The NNEDV notes that financial abuse is one of the most powerful ways abusers keep survivors in the abusive relationship . 13 Lack of access to funds or assets is often a barrier to leaving an abusive situation as there is no way to pay for hotels , apartments , food or other necessities . Survivors report , on average , having access to less than $ 290 while needing an average of nearly $ 800 a month to stay independent and safe . 14 Defaulting on joint credit and coerced debt ensures survivors may not qualify for a variety of credit-based services such as housing rentals , auto loans or utility services .
Similar to HT cases , abusers may retain possession of the survivor ’ s identification documentation . That , coupled with restricting access to financial information and funds , can impede a survivor ’ s access to the banking system . That access may be critical to a survivor leaving their situation .
Childhood financial abuse
In 2021 , the U . S . Department of Health and Human Services reported that 588,229 children would become victims of child abuse and neglect , based on nearly four million referrals of child maltreatment to child protective services across the U . S . 15 Reports are broken into physical , sexual and psychological abuse , as well as neglect , meaning information on financial abuse is not separately tracked . A form of psychological abuse , childhood financial abuse is defined as the act of using money as a weapon to take advantage of a minor , typically taking one of three forms : Parental financial abuse , identity theft and teen financial abuse . 16
Parental financial abuse and teen financial abuse mimic many of the same behaviors and red flags as domestic financial abuse and elder financial abuse . However , given the guardian / child relationship , the activity may be more difficult to detect . The most prevalent and unidentified is when a parent or guardian uses a child ’ s information to obtain a loan or purchase items they cannot afford . According to Syracuse University , the impacts often go undetected until after significant damage is done . 17 This form of identity theft is detrimental to minors coming of age who may not be able to obtain credit on their own due to poor credit history .
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