How to Identify and Address Financial Child Abuse

Financial abuse often goes unnoticed, especially among children. This form of abuse involves the improper or illegal use of a child's financial resources, significantly impacting their present and future well-being. Recognizing the signs and taking proactive steps can safeguard children's financial autonomy and ensure their financial future.

Financial abuse in children is the unauthorized or improper use of a child's financial resources for someone else's gain or control. This form of abuse can manifest through various actions, including the unauthorized use of a child's savings, identity theft or exploitation of their financial identity for loans or credit. Although this misuse may not always stem from malicious intent, it often adversely affects the child's credit and financial future.

While parents, guardians or close relatives are often the perpetrators, anyone with access to the child's financial information can commit this abuse. Below are several prevalent forms of child financial abuse:

Financial abuse can deeply affect children's immediate security and has lasting effects on their financial health and decision making. Such abuse can also lead to a loss of confidence and trust, which are critical for developing sound financial management skills. Below are some of the key economic impacts of financial child abuse.

Although the consequences of financial abuse are severe, they are not insurmountable. Early intervention, comprehensive financial education and supportive relationships can play pivotal roles in mitigating these effects. If you suspect that a child is a victim of financial abuse, here are steps to report the abuse:

Acting upon your suspicions and following these steps can significantly enhance a child's protection from potential financial abuse.

If you need to report financial abuse involving a child or are seeking support and resources, you can reach out to these hotlines:

Consider implementing the following strategies to safeguard children’s financial well-being. Note that these suggestions do not replace legal counsel specific to your situation. Always seek advice from legal professionals who can tailor solutions to your circumstances.

Below is a list of resources that provide services ranging from counseling to legal support and for combating child financial abuse.

• Children's Defense Fund (CDF): Advocates for children's rights to ensure a level playing field for all children. CDF focuses on policy research and public awareness campaigns to protect children from harm and ensure access to health care, education and a fair legal system.
• Consumer Financial Protection Bureau (CFPB): Offers financial education resources to protect consumers, including minors, from financial harm. The CFPB provides tools for managing money, understanding consumer rights and reporting financial exploitation.
• National Center for Victims of Crime: Delivers support and information for victims of all types of crimes, including financial abuse. The center offers resources for recovery and navigation of the legal system to ensure victims' rights are upheld.
• National Child Traumatic Stress Network (NCTSN): Provides extensive resources and research on child trauma. NCTSN offers guidance for professionals and families to understand and mitigate the impact of trauma on children.
• National Children's Advocacy Center (NCAC): Specializes in training, support and resources for addressing child abuse. NCAC promotes effective, coordinated responses to child abuse, including legal and psychological support services.
• National Foundation for Credit Counseling (NFCC): Provides counseling and financial education services to help individuals, including families with children, manage debt and improve their economic situations. NFCC can assist in recovering from financial abuse and rebuilding financial health.