Invest
Do you know what financial abuse looks like?
Financial abuse can be subtle, with one partner gradually taking control over banking and other financial transactions.
Do you know what financial abuse looks like?
Financial abuse can be subtle, with one partner gradually taking control over banking and other financial transactions.

Financial abusive behaviour can take many different forms such as controlling a family member’s money, stopping them from being financially independent or earning their own money.
Speaking on the podcast of Nest Egg’s sister title Wellness Daily, the founder and financial adviser at On Your Own Two Feet and author of two books on financial planning for women, Helen Baker, discussed her tips and tricks to avoid financial abuse.
How common is this form of abuse?
According to Women and Money, 15.7 per cent of women have experienced financial abuse, with the most common form of abuse happening to the elderly. This is costing the economy $15.6 billion a year.

Sexually transmitted debt
Ms Baker believes new couples often end up in what she calls “sexually transmitted debt” where one member of the partnership takes control.
“If you rush in and put your finances together, if the other person hasn’t sorted out their financial situation, you can also put yourself into a position of vulnerability there where they could create debts that you become accountable for as well. Classic cases are, someone loses their job or gets sick and can’t work, they don’t have income protection,” said Ms Baker.
Five foundations to avoid financial abuse
1) Have an emergency fund – This is to protect yourself in case of loss of employment or if you need money in a hurry in case something significant happens.
2) Have a spending and investment plan – Spend less than you earn and borrow less than you can afford so you don’t get in over your head and start pushing money away from investments.
3) Insurance – Have insurance in place to protect your income.
4) Super – Everyone needs to have one, so grow your super.
5) Will and power of attorney – Make sure you have a will and your power of attorney in place to protect yourself.
“It’s a bit like when you build a house, you put a lot of money into the concrete and the slab, the metal, and then if something blows, the rest doesn’t come falling down,” said Ms Baker.
About the author

About the author


Spending
Moneysmart study reveals Gen Z women more concerned about finances than men
A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more

Spending
The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'
It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more

Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. Read more

Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. Read more

Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. Read more

Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. Read more

Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. Read more

Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. Read more

Spending
Moneysmart study reveals Gen Z women more concerned about finances than men
A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more

Spending
The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'
It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more

Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. Read more

Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. Read more

Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. Read more

Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. Read more

Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. Read more

Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. Read more