The Ripple Effect of Financial Abuse on Young Lives

BY: Hannah Jagiri

Child Financial Abuse at its core involves the inappropriate use of a child’s identity or assets for personal gain. Financial Abuse is a form of mistreatment often overshadowed by its physical and emotional counterparts, which wields a silent yet devastating impact on children (The National Foundation to End Child Abuse and Neglect, 2021).

It is a manipulation of economic resources to exert control, and when children are the victims, the consequences can reverberate throughout their lives. This can occur in the form of parents taking out loans under their child’s name, or outright theft of a child’s earnings or savings (The National Foundation to End Child Abuse and Neglect, 2021). The repercussions are not just immediate but can extend far into adulthood, leaving significant marks on a child’s financial and emotional well-being.

The Long-Term Impacts of Financial Abuse on Children

Children subjected to Financial Abuse often find themselves thrust into adulthood with a burdened financial history. Poor credit scores, substantial debt, and a lack of financial literacy are common outcomes. These issues can hinder their ability to secure loans for education, find housing, or even gain employment, as credit checks become a standard procedure in many aspects of life (The National Foundation to End Child Abuse and Neglect, 2021).

The psychological effects are often profound. Children who witness or experience Financial Abuse may develop a distorted view of money and relationships. Trust issues, anxiety surrounding finances, and a diminished sense of self-worth are frequent psychological scars left by such abuse. These can lead to difficulties in forming healthy relationships and making sound financial decisions in the future (Sahadi, 2022).

The societal implications are equally troubling. Financial Abuse contributes to cycles of poverty and can perpetuate disparities. When children are unable to break free from the shackles of their tarnished financial past, they may struggle to contribute economically (Penniless Parenting, 2010).

How To Prevent Child Financial Abuse

Prevention and early intervention are key. Educating children about financial literacy, ensuring they have access to resources that protect their financial identity, and fostering environments where they can speak up about abuse are crucial steps in safeguarding our future generations from the clutches of financial exploitation (Axford & Berry, 2023).

Financial Abuse against children is a grave concern that demands attention. Its impacts are far-reaching, affecting not just the individual child but society at large. By shining a light on this issue and taking proactive measures, we hope to shield children from its harmful effects and pave the way to a more financially secure and emotionally healthy future.

At ARO, we are here to support your personal healing journey towards your complete well-being. We bring solutions and real-time education for 21 different types of abuses. The most prevalent abuses are Sexual Abuse, Spousal Abuse, Physical Abuse, Psychological Abuse, Narcissistic Abuse, Financial Abuse, Self Abuse, Elderly Abuse, Isolation Abuse, Child Abuse, Bullying, Cyberbullying, Workplace Abuse, Religious Abuse, Medical Abuse, Food Abuse, Authority Abuse, Educational Abuse, Child Sexual Exploitation, Sex Trafficking, and Political Abuse. Support our efforts by visiting GoARO.org and NormTherapy.com to sign up for Norm Therapist® Training to become one of our dynamic staff members who serve Victims and Survivors of abuse worldwide, schedule Norm Therapy® sessions, become a Live Stream volunteer, join our mailing list to learn how you can make an impact on the Abuse Care Community, and provide life-saving financial assistance with a generous donation.

References 

The National Foundation To End Child Abuse and Neglect. (2021, October 21). 3 forms of financial child abuse. EndCAN. https://endcan.org/2021/10/21/3-forms-of-financial-child-abuse/ 

Sahadi, J. (2022, May 19). How early traumas can affect your relationship with money | CNN business. CNN. https://www.cnn.com/2022/05/16/success/money-trauma/index.html

Penniless Parenting. (2010, July 16). Breaking the poverty cycle. Penniless Parenting. https://www.pennilessparenting.com/2010/07/breaking-poverty-cycle.html Axford, N., & Berry, V. (2023, March 13). Money matters: Time for prevention and early intervention to address family economic circumstances. Journal of prevention (2022). https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10009842/