Financial Trauma & Monetary Psychotherapy

Financial Abuse and Emotional Healing

By Dan Lobel, D.Couns., B.Couns., MCouns&Psych • Melbourne, Australia

Introduction

Financial abuse is one of the most insidious forms of control — and one of the least visible. It may begin subtly as “convenience” or “help,” yet over time restricts access to money, reduces choice, and erodes confidence. In clinical practice, the emotional wounds frequently outlast the financial harm. This article outlines how to identify financial abuse, its impact on the body and mind, and practical, trauma-informed steps to rebuild safety and autonomy.

Safety note: If you suspect ongoing abuse, consider seeking confidential advice before changing accounts or confronting anyone. In emergencies, contact local services immediately.

What Is Financial Abuse?

Financial abuse occurs when one person uses money or economic resources to gain power and control over another. It can happen in romantic relationships, families, friendships, share-houses, or workplaces.

Story: Jordan and the “helpful” partner. What began as “I’ll manage the bills” became secret credit cards opened in Jordan’s name. The deepest injury wasn’t only the debt — it was the theft of agency.

The Psychological Impact

Financial abuse is psychological control enacted through money. Its intention is power, not budgeting. The nervous system adapts by prioritising survival over learning and exploration.

Example: Taylor at the checkout. After years of criticism, even buying groceries triggered shaking hands. The body remembered punishment, not prices.

Why It Hurts So Deeply

Money represents survival, freedom, and identity. When it’s weaponised, the body hears: “You are not safe on your own.” Over time, self-trust fractures and everyday choices feel risky.

Recognising Financial Abuse

Because it often hides behind “normal” dynamics, awareness is the first intervention. Consider the following questions:

Multiple “yes” responses suggest patterns of control. Awareness is not blame; it’s the beginning of choice.

The Path to Emotional Healing

Recovery is both practical and emotional. The sequence matters: ensure safety, calm the body, then rebuild capability and identity.

1) Re-establish Safety

2) Regulate the Nervous System

3) Rebuild Self-Trust

4) Repair Identity & Community

Restoring Healthy Financial Boundaries

Boundaries are not rejection — they are protection. Healthy financial relationships rely on transparency, consent, and respect.

Story: Riley’s first “No.” After years of sibling control, Riley tracked income privately and practised new scripts. Saying, “No, I’ve got it,” brought tears of relief — a bodily sign of returning autonomy.

The Role of Therapy

Spreadsheets alone cannot heal coercion. Therapy offers a regulated space to process grief, fear, anger, and betrayal while rebuilding capability step by step.

FAQ

What if I can’t safely change accounts right now?

Prioritise safety. Consult a confidential helpline or financial counsellor first. Planning discreetly may be the safest interim step.

Should I confront the person controlling the finances?

Only if it’s safe. Consider risks and prepare with support. Sometimes a staged, private transition is safer than confrontation.

How long does healing take?

Recovery isn’t linear. Progress comes from consistent small steps and nervous-system safety. Therapy helps pace change to avoid overwhelm.