Avoiding Financial Abuse – Learn Your Rights, Create a Budget, and Monitor Your Accounts

Introduction

Financial abuse is a form of exploitation that can have devastating effects on its victims. According to the National Council on Aging, financial abuse is defined as “the illegal or improper use of an elder’s funds, property, or assets.” Unfortunately, it is estimated that it affects over 5 million older adults in the United States each year. It is important for individuals of all ages to understand their rights and take steps to protect themselves from becoming victims of financial abuse.

Know Your Rights

The first step in avoiding financial abuse is to know your rights. This includes understanding what behaviors are considered financial abuse, such as stealing or misusing money or assets, concealing or transferring assets without permission, or pressuring someone to make financial decisions they do not want to make. It is also important to know that financial abuse can come from family members, friends, caretakers, or strangers.

In addition to understanding what behaviors are considered financial abuse, it is also important to know how to protect yourself. This includes taking steps to keep your finances secure, such as changing passwords regularly, never giving out personal information, and being aware of scams. It is also important to have a basic understanding of financial literacy, as this can help you spot signs of potential abuse.

Create a Budget

Creating a budget is an important step in avoiding financial abuse. By tracking your spending and setting financial goals, you can better manage your finances and be aware of any suspicious activity. When creating a budget, start by tracking all of your expenses for a month. This will give you a good idea of where your money is going and help you identify areas where you can cut back. After tracking your expenses, create a budget that outlines how much you plan to spend in each area.

Setting financial goals is another way to stay on top of your finances and avoid financial abuse. This could include saving for retirement, paying off debt, or building an emergency fund. Having clear financial goals will help you stay focused and motivated to reach them.

Monitor Your Accounts

Keeping an eye on your bank statements, credit card statements, and other financial documents is another important step in avoiding financial abuse. By regularly checking these documents, you can spot any unauthorized charges or withdrawals. You should also be aware of any changes in account balances or transactions that seem out of the ordinary.

It is also important to be aware of any suspicious emails or phone calls. Many scams involve someone posing as a representative from a legitimate company in order to get access to your financial information. If you receive a call or email asking for personal information, hang up or delete the message immediately.

Set Boundaries

Establishing clear expectations with those who have access to your accounts is another important step in avoiding financial abuse. This includes setting boundaries with family members, friends, and caretakers. For example, if you are uncomfortable with someone having access to your bank accounts, let them know and explain why. It is also important to learn to say “no” if someone is pressuring you to make a financial decision you do not want to make.

Get Professional Help

Seeking out professional advice from an accountant or financial advisor can help you better manage your finances and avoid financial abuse. They can provide guidance on budgeting, investing, taxes, and more. Knowing when to ask for help is also important. If you feel overwhelmed or uncertain about a financial decision, don’t be afraid to reach out for assistance.

Report Suspicious Activity

If you suspect someone is engaging in financial abuse, it is important to report it to the authorities. Look for signs of financial abuse, such as sudden changes in accounts, large or unusual withdrawals, or unexplained purchases. If you see any of these signs, contact the police or your local Adult Protective Services agency.

Conclusion

Financial abuse can be devastating, but there are steps you can take to protect yourself. Knowing your rights, creating a budget, monitoring your accounts, setting boundaries, and getting professional help when necessary are all important steps in avoiding financial abuse. By following these tips, you can help ensure your financial security and peace of mind.