Recognise economic harm

Economic harm is behaviour towards a person that controls, restricts or removes their access to money, economic resources or participation in financial decisions.

What is economic harm?

Economic harm, often called financial or economic abuse, is recognised as a form of psychological abuse within the Family Violence Act 2018.

It is experienced in many close personal relationships, particularly intimate partner relationships. It may also include forms of elder abuse. Unlike physical violence, economic harm is less visible and does not leave marks. The impact can be debilitating and can affect financial security well into the future.

In situations where demands are refused, what begins as economic abuse can lead to other forms of abuse such as yelling, threats and more violent behaviour.

Read more about the Family Violence Act 2018.

“It was like he had an image of a perfect girlfriend. He would decide what I wore, where I went, who I saw and give me as much money as he thought I needed for the things he agreed that I could do”.

Why does it happen?

Economic harm can impact all ages, socio-economic groups, cultures, ethnicities and genders. It may also present differently in some cultures due to traditions and beliefs, or the systemic experience of colonisation.

Economic harm is experienced in the context of power and control and is often intentional, but not always. Like other forms of violence, it can be subtle, beginning with the smallest breach of trust, and then build over time.

Economic harm can also be a product of intergenerational learning, role modelling, previous trauma, belief systems, limited knowledge, traditions etc.

It is most evident when a specific pattern of behaviour is occurring – such as coercion, withholding financial access or support, deceptive behaviour or unreasonable control that limits another persons’ economic or financial involvement – including resources such as accommodation, transport, employment and clothing.

It may also involve limited or no participation in decisions or actions relating to financial and economic wellbeing.

Listen to Susan’s story:

“I was afraid to get clothes for the kids”.

What it looks like

Other behaviour may be occurring, particularly if a person is trying to leave the relationship, which can be the most dangerous time.

This could be such things as:

Child support isn’t being paid
The car is damaged so you can’t go anywhere
Court process intentionally dragged out
Money or resources being withheld to prevent you from leaving the relationship
Your employment situation becomes difficult due to constant harassment

Human relationships are complex. There are many things to navigate in a close personal relationship, and one of the most common challenges is money and finances.

Discussions about money will surface at some point and are not only necessary but can be difficult regardless of how healthy a relationship is.

However, there is a difference between “money problems” that a couple works on together to resolve, and financial controlling behaviour that can lead to economic harm.

Listen to Michele’s story:

“I didn’t associate myself, my situation, with family violence.”

If you are an employer, you might notice some potential red flags

Identifying economic harm isn’t so easy, or even possible in some cases, due to its lack of visibility. There are some potential red flags that have been identified by people with their own experience of economic harm.

Individually these indicators may mean very little, however several together can show a pattern. This does not necessarily mean economic harm is being experienced.

These red flags are a starting point to let you know some difficulty could be occurring, and a conversation with the employee could be useful.

Withdrawing from social interaction – unable to participate in social or work activities that cost money – acting awkwardly or not wanting to talk about why
Seeming guilty and defensive when talking about spending money on everyday items
Partner ringing a lot, texting or showing up – checking up or asking about pay details
Presentism – regularly working late, not wanting to go home or asking for extra shifts
A change in appearance, or behaviour, or drop in work performance – usually competent, professional and proficient – now a lack of concentration or preoccupied
Asking for annual leave to be paid out without explanation
Having no money for necessities, yet having an income that should cover it
The employer being contacted by government departments regarding redirection, fines or other debts not paid
Appearing uncomfortable or fearful when talking about their partner
Hearing concerns from other colleagues that things aren’t good at home
Anxiety about getting paid on time, or needing pay in advance
Asking work to pay bills or redirect money to a different account
Not having access to their own or joint bank account
Using a shared email account
Ongoing transport issues getting to work – or being picked up and dropped off
Absenteeism – regularly late to work, not coming at all (sick) or other things happening at home
Change in employment status within the family such as job loss or reduced hours- leading to comments about extreme financial strain
Seeming emotional or irrational – all over the place with their thinking or behaviour
Forced to sign immigration papers or other documentation.

Check if it’s happening to you

If your answer is yes to one or more of the questions below, you could be experiencing economic harm.

Do you have to ask for money or explain your spending needs for everyday items or basic needs?
Have you ever been coerced/forced to give up your job, go to work or stay home?
Are you pressured to act in a specific way to have access to money?

If your answer is no to one or more of these questions below, you could be experiencing economic harm.

Do you have access to the money in your personal and family bank account?
Are you allowed to know how much debt your family has?
Do you have some or equal decision-making power over how the household money is spent?