Empowering Survivors: Financial Literacy as a Key Tool in Combating Domestic Violence

Understanding Financial Abuse

Financial abuse occurs in 98 percent of abusive relationships and is the number one reason victims stay in or return to abusive relationships, according to the Center for Financial Security at the University of Wisconsin – Madison. This form of abuse can be subtle or explicit, including behaviors such as concealing information, limiting access to assets, or reducing accessibility to family finances. Financial abuse, along with emotional, physical, and sexual abuse, includes behaviors to intentionally manipulate, intimidate, and threaten the victim and entrap them in the relationship.

The Role of Financial Literacy

In support of Domestic Violence Awareness Month, Triple-I offers financial strategies to protect victims before and after leaving an abusive relationship. These strategies include securing financial records, knowing where the victim stands financially, building a financial safety net, making necessary changes to their insurance policies, and maintaining good credit. The National Coalition Against Domestic Violence (NCADV) reports that 10 million people are physically abused by an intimate partner each year, and 20,000 calls are placed to domestic violence hotlines each day. In addition, 85 percent of women who leave an abusive relationship return because of their economic dependence on their abusers.

Empowering Through Education

One example of insurers that are developing such tools is The Allstate Foundation, which has been committed to ending domestic violence since 2005 through financial empowerment by helping to provide survivors with the education and resources needed to achieve their potential and equip young people with the information and confidence they need to help prevent unhealthy relationships before they start. The foundation offers a Moving Ahead Curriculum, a five-module program that helps prepare survivors as they move from short-term safety to long-term security. Modules of the curriculum include understanding financial abuse, learning financial fundamentals, mastering credit basics, building financial foundations, and long-term planning.

For readers, it's crucial to understand that financial literacy can be a powerful tool in combating domestic violence. Educating oneself and others about financial abuse and its prevention can make a significant difference in the lives of survivors. Consider supporting organizations that provide financial education and resources to survivors, and advocate for policies that protect victims of domestic violence.