Financial Dependency

Financial dependency is when someone is dependent on a person, job or situation for money.

Dependent by Choice
Some people become dependent by handing over their power and participation in making decisions about their money

  • In Relationships - where one partner doesn't want to be involved. This can be a personal or business relationship. They hand over their power and responsibility to a spouse, partner or professional - bookkeeper, accountant, lawyer. This also happens with celebrities and professional athletes.
  • Adult children that live with their parents - they either move home or don't leave home because they don't want to go out on their own and have no money management skills or financial responsibilities
  • Elderly parents that move in with their children or relatives.  They may feel that they are getting older and want to be closer to loved ones.  They sometimes let someone else manage their money and bank accounts, or they sign over power of attorney or put their money and asset's in someone else's name in case something happens to them.

Dependent without choice
In these situations the person feels trapped because of their financial situation

  • In a job or career that they are unhappy with or are being harassed but they can't leave because of their financial situation - whether it's due to credit car, college debt, medical bills, or expenses from taking care of their family or elderly parents
  • Adult children that move home with their parents because they've had an illness or have gone through a tragedy - divorce, loss of home due to weather related events or loss of a job.
  • Elderly parents - that may be incapacitated or can't take care of themselves either physically or emotionally and they have to move in with relatives.

What Steps Can I take towards Financial Freedom?

If You are Dependent by choice:

  • Become aware of the signs of financial dependency
  • Learn about your financial situation and begin to participate in making decisions, sharing financial information- making plans and setting goals.

If You are Dependent without choice and feel trapped:

  • Set Goals and Get Support -There are many free resources online and offered by your local financial institutions and non-profits to help you learn about paying off debt, saving, investing and access to funding sources if you've experienced a tragedy.
  • Be aware of your confidence level -situations where you feel trapped can make you lose confidence and feel that you are unable to manage your money - this isn't true - you can be successful at changing your situation
  • Listen to others you know are in these situations and offer them support - without judgment or criticism