Financial abuse can entrap women
Economic control can be hard to break
Debra Smith worked hard as a certified nurse’s assistant. But every two weeks, she would bring home her paycheck, pay for child care, then turn the rest over to the husband she said emotionally and verbally abused her.
“He would give me an allowance of about [$10 per week],” said the 41-year-old. “And I had to account for every penny.”
Eager to find a way out, she began taking courses online. She did well, receiving scholarships and grants, but said she had to forfeit them when her husband canceled their Internet service.
Without a cent to her name, leaving her husband seemed almost impossible. But with the help of police and local nonprofit agencies following a physical altercation, she was eventually able to have her husband evicted from their home.
(Debra Smith is not her real name. The News is using a pseudonym to protect her from possible retribution.)
Only after her husband’s eviction did she find out about the scores of credit cards and bank loans he obtained during their 14-year marriage.
“I have no idea how that is going to affect my credit score,” Smith said.
Economic abuse, such as what Smith said she suffered, is one of the most common factors preventing victims from leaving abusive relationships, according to the Allstate Foundation, an independent charity funded by subsidiaries of Allstate Corp.
It also happens to be one of the most underserved facets of domestic violence.
“When I first heard about domestic violence, I pictured cuts and bruises, broken bones. I could imagine the emotional abuse,” said Inez Birbiglia, chairwoman of the Allstate Foundation. “But not many people have heard of economic abuse. It’s just as common, and the long-term effects are devastating.”
Economic abuse happens when someone exercises control over another person by restricting their access to money or other financial resources.
It is done in many ways. Sometimes the abuser controls a person’s paycheck, employment, financial accounts or purchases. Sometimes they destroy a credit rating by using a victim’s credit cards or putting bills in their name and never paying them. Or they force a victim to turn over government benefits and financial assets, refuse to pay child support, or harass someone at work until they lose their job.
“Imagine what these women are going through,” said Birbiglia. “Many women are fearful of money and finances to begin with. Add to that the psychological effects of domestic violence, and being fearful of life in general and it’s very difficult.”
To address economic abuse in all its forms, the Allstate Foundation and the National Network to End Domestic Violence joined to create the Allstate Foundation Domestic Violence Program.
The first organization to focus national resources on the niche issue of economic control, the program provides tools and strategies for domestic violence victims to escape abuse and become economically self-sufficient.
Allstate financial representatives team up with domestic violence coalitions and together they train domestic violence service providers to implement the curriculum.
“A lot of people working in domestic violence don’t necessarily have the financial knowledge they need to help these women, and financial workers might not understand the psychological needs of violence survivors,” said Birbiglia. “Having different groups lend their expertise and work together is important.”
In addition to funding things such as education and job training, a key aspect of the program is its financial empowerment curriculum. With it, women learn how to do everything from use a calculator and plan a budget to monitor a credit report, fund an Individual Development Account (a type of savings account that receives matching funds from various sources), and start a small business.
Haven House, a local shelter for abused women and children, is in the process of implementing the curriculum to supplement the crisis, counseling, housing and transitional services it now offers.
According to Haven House spokeswoman Barbara Hertel, learning about finances and becoming self-sufficient can be transformational.
“It’s huge. Some of these women have been told they’re too stupid to take care of their money, or that no one will want to hire them,” said Hertel. “Once they realize that’s not true and that they can do it on their own, that confidence just can’t be duplicated any other way.”
Since 2005, 3.5 million people have benefited from the program nationally. To raise awareness about the program, the Allstate Foundation will sponsor a Buffalo Bisons baseball game Saturday, calling it “Safe Families Night.”
During the game, the Foundation will present a check for $10,000 to Haven House so they can continue to help people like Smith.
Though she is still struggling to get back on her feet, Smith feels worlds away from her previous life. She is taking full-time college classes, maintaining a 4.0 grade point average and raising her 8-and 11-year-old daughters.
“I still get intimidated and I still feel insecure about things,” Smith said. “But I feel a lot safer now.”
