Financial abuse in a child/parent relationship
Parental financial abuse is a common form of child abuse. This is a complex issue where the parent uses money as a weapon to take advantage of a minor. This can be done by stealing a child’s money or by using their personal information for economic gain. It is important to know the warning signs so you can help prevent or stop the abuse. Sometimes parents will use a child’s information to apply for credit cards, take out loans, or to make big purchases they cannot afford. This leaves the child with damaged credit and severe debt before they even hit adulthood. This can leave the victim in a constant poverty struggle once they get older. Credit scores are looked at by employers, landlords, and banks. This can make it difficult for them to get a loan for college, a mortgage on a house, or a loan for a car. Financial abuse can cause lifelong damage to a child’s future.
Financial abuse can be hard to identify because it is invisible compared to physical abuse. Children most likely won’t know they have been financially abused until it is too late, and the damage is done. Some parents do not realize the negative consequences of exploiting their child’s money. Since it is hard for a child to know what is going on, it is important for adults close to the children to be aware of red flags for financial abuse. This form of abuse may be happening if a child has a credit report, receives credit or bank information in their name, a parent consistently takes the child’s gifted/earned money and never allows them to have access to it, a parent demands all money given to the child to be placed in the parent’s name, or if the child is punished for spending their own money.
If financial abuse is suspected, there are a few steps you can take. First, have a conversation with the parents if it is safe to do so. Some parents do not think through the consequences of these actions. Educating them can help put a stop to this abusive behavior. You can also obtain a credit report using the child’s name to see if there is any damage. This will also act as proof in any legal matters. The next step would be to contact the lenders to cancel and come up with a payment plan.
By: Rachel Salmon
Oct. 2022
Reference: What is financial child abuse? (n.d.). ENDCAN. Retrieved October 10, 2022, from
https://endcan.org/2021/10/21/3-forms-of-financial-child-abuse/