I’m a Finance Expert: 3 Signs You’re Experiencing Financial Abuse and How To Stop It
Written by
Cindy Lamothe
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Jenna Klaverweiden
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Financial abuse is a silent epidemic that destroys personal autonomy and financial security.
GOBankingRates spoke with Abid Salahi, finance expert and co-founder of FinlyWealth, and Dennis Shirshikov, head of growth at Summer and professor of economics at the City University of New York, to discuss the signs one might be experiencing financial abuse and the steps that can be taken to stop it.
Here’s what to look out for.
Manipulation and Creating Dependency
A key sign of financial abuse is manipulation and dependency. “It’s a form of manipulation that goes beyond monetary control — it’s about stripping away an individual’s sense of independence and self-worth,” Salahi said.
He explained that the most insidious signs of financial abuse often start subtly.
“An abuser might initially appear helpful, gradually taking control of bank accounts, credit cards and financial decision-making,” he explained. “They create dependency by limiting your access to money, monitoring every expense or demanding exhaustive explanations for each financial transaction.”
Isolation
“Isolation is a key warning sign — when someone prevents you from discussing finances with trusted friends or family, it’s a major red flag,” Salahi said.
Shirshikov agreed. “Financial abuse often manifests in ways that may seem innocuous at first but can escalate over time,” he explained.
He said key warning signs include unexplained withdrawals from your accounts, sudden changes to wills or financial documents, and being kept in the dark about household finances.
Controlling Behaviors
According to experts, if a partner insists on maintaining complete control over financial resources or discourages their partner from accessing their own money, these are red flags.
In romantic relationships, Salahi said financial abuse manifests through controlling behaviors. Here are some key examples of controlling behaviors to look out for.
- Preventing you from working or sabotaging your career
- Demanding complete access to your financial accounts
- Creating significant debt in your name
- Punishing you through financial restrictions
- Forcing you to account for every penny spent
Advice on How To Protect Yourself
According to Salahi, protection starts with financial independence. “Open a separate bank account in your name only. Maintain personal credit cards and establish credit independently,” he said.
He advised documenting all financial interactions and keeping copies of important financial documents in a secure location outside the shared living space.
For those experiencing financial abuse, experts say seeking help is crucial. “Contact local domestic violence support centers, which often provide financial counseling,” Salahi said. He noted that many organizations offer free resources and legal guidance for individuals extricating themselves from financially abusive situations.
Technology can also be a powerful ally.
“Use password-protected financial apps, enable two-factor authentication and maintain digital records of all financial interactions. Consider working with a financial advisor who can help you rebuild financial independence and create protective strategies,” Salahi explained. “Remember, financial abuse is never your fault. You deserve complete control over your economic well-being, and help is available.”
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