center on violence against women and children economically empowering survivors of domestic violence...

Center on Violence Against Women and Children

Economically Empowering Survivors of Domestic Violence

Judy L. Postmus, Ph.D., ACSW

What we know about Domestic Violence• Economic factors are the largest predictor of

whether a women stays, leaves or goes back to an abusive relationship

• Abusers use multiple strategies to maintain power & control over a period of time (e.g. physical, emotional, sexual)

• Another strategy used is economic abuse:– “Economic abuse involves behaviors that control a woman’s

ability to acquire, use, and maintain economic resources, thus threatening her economic security and potential for self-sufficiency.”


Understanding Economic Abuse

• Key to determining if economic abuse is present in a relationship centers on the lack of cooperation and discussion on financial decisions

• Examples include:– Discouraging or preventing employment or furthering their

education – Monitor work activities by tracking pay or disrupting her day – Insisting on accounting for all expenditures– Running up credit or debt, excessive gambling, purposefully

ruining credit scores– Make important financial decisions without discussing with

partner


Consequences of Economic Abuse

• Poverty• Stressful home environment• Greater economic dependence on abuser• Greater uncertain economic future• Greater risk for depression, anxiety, or physical

health problems• Vulnerable to poor educational & employment

success• Damaged self-esteem and self-efficacy• Forces women to choose between staying in abusive

relationship or face poverty and/or homelessness


What we know about Financial Literacy

• Most financial literacy programs created in late 1990s based on:– Economic crisis in families & communities– Technological changes & market innovation– A rise in questionable mortgage lending

practices– Increase in consumers’ gaining early and

greater access to credit– Changes in demographics (i.e. influx of

immigrants)(Braunstein & Welch, 2002)


What we know about Financial Literacy

• Financial education programs have been designed for:– Women

(Anthes, 2000; DeVaney et al., 1996)

– Individuals in the workplace (Garman, Kim, Kratzer, Brunson, Joo, 1999)

– Native Americans (Malkin, 2003)

– College students (Borden, Lee, Serifo, & Collins 2008; Perry & Morris, 2005)

– High school students (Bernheim, Garrett, & Maki, 2001; Johnson & Sherraden, 2007)

– Low income individuals (Zhan, Anderson, & Scott, 2006)


What we don’t know about Financial Literacy

• How does financial literacy affect the cycle of domestic violence?

• Some have postulated that economic empowerment, higher education levels and stronger financial contributions may lessen economic and physical abuse

• Financial literacy is essential for escaping all forms of abuse & poverty


Financial Literacy as part of DV services

• Little is known about how financial literacy programs may help domestic violence survivors and what effect it may have on the cycle of violence

• Historical resistance to incorporate financial education into domestic violence services– Long term financial planning vs. crisis

intervention– Information provided is inconsistent and

incomplete– Concern over lack of funding

(VonDeLinde, 2002)


Financial Literacy as part of DV services

• Recent research suggests domestic violence clients desire increased attention to their economic needs from local service providers(Bonica, 2000; Postmus, et al., 2009; VonDeLinde, 2002)

• Concerns include: healthcare, childcare, impact of batterers’ behaviors (lack of job skills, or poor credit history), employment, child support, housing, utilities, and transportation (VonDeLinde, 2002)


Changing what the world knows about financial literacy and domestic violence

• Financial literacy is receiving significant attention from policy-makers, government officials, and educators

• The Allstate Foundation and Rutgers are leading the development of research on financial literacy– For any population– Specifically for survivors of domestic violence

• Partnership also providing evidence that the curriculum is making changes to:– Domestic violence survivors’ lives– How the domestic violence field addresses economic

empowerment for their clients and themselves


Key Terms in Financial Literacy

• Financial literacy is “the ability to read, analyze, manage, and communicate about the personal financial conditions that affect material well-being. It includes the ability to discern financial choices, discuss money and financial issues without (or despite) discomfort, plan for the future, and respond competently to life events that affect everyday financial decisions” (Vitt, et al., 2000)

• Economic self-sufficiency is the manifestation of a wide range of behaviors related to financial management (Gowdy & Pearlmutter, 1993)

• Economic self-efficacy is the belief that one has the resources, options, & confidence to complete financial tasks (Weaver, Sanders, Campbell, & Schnabel, 2009)


Economic Empowerment

• Empowerment is defined as the process of gaining power & control over one’s own life (Kasturirangan, 2008)

– Including one’s personal financial life

• Economic empowerment includes the knowledge, skills, & confidence needed to address one’s own financial well-being


The Allstate Foundation Financial Empowerment Curriculum

• The Moving Ahead curriculum includes:– Strategies for addressing complex financial and safety

challenges of ending an abusive relationship– Tools to help people of all incomes and earning power

work toward long-term financial empowerment, including budgeting tools and step-by-step planners

– Resources to help understand credit and credit repair– Tactics for accessing local, state and national personal

safety and financial resources– Methods for dealing with the misuse of financial

records– Resources for working through the challenges of

identity change


Exploratory Research: First of its kind

States

West Virginia

South DakotaOhio

Wisconsin

Wyoming

Kentucky

Florida

Missouri

New York

Iowa


• 15 domestic violence agencies and shelter programs in 10 states

• Individuals at each site were invited to participate in the evaluation if they– a) Were 18 years or older, and – b) Had attended at least one

individual or group session during which the economic empowerment curriculum information had been shared

Research Questions

• What is the prevalence of economic abuse?• What is the participant’s level of financial literacy?• Are there significant differences in financial literacy

based on demographics?• Does financial literacy impact economic

empowerment when controlling for abuse variables, demographic factors, economic self-efficacy, and economic self-sufficiency?

• What skills and behaviors did the participants obtain after being introduced to the curriculum?

• Were there significant changes over time?


What did we ask?

• From survivors:– Abuse experiences (economic, psychological, and physical)– Economic literacy (developed from the curriculum)– Economic empowerment – Economic self-sufficiency and economic self-efficacy– Quality of Life– Mental health (i.e. depression and PTSD)– Basic demographics (e.g. gender, age, ethnicity, education, length

of services received)– Financial skills learned & used– Use & helpfulness of the economic empowerment curriculum

• From advocates/coalitions: – Qualitative questions RE: implementation and delivery of the

curriculum (e.g., How did the implementation of the curriculum differ between individual and group settings? How did you determine which workbooks to use with each client?)


Variables & Measures

• Independent– Financial Literacy

• Controls– Abuse:

• Economic abuse• Physical abuse• Psychological abuse

– Demographics:• Age• Education• Ethnicity• Length of Services• Income

– Economic self-sufficiency– Economic self-efficacy


• Financial literacy scale created by researchers; based on curriculum

• Scale of Economic Abuse (SEA)• Abusive Behavior Inventory

(ABI)• Family Empowerment Scale;

revised by researchers• WEN Economic Self-Sufficiency

Survey• Domestic Violence Financial

Issues Scale (economic self-efficacy subscale)

• Basic demographics

Demographics

• Age (average = 39) – 18-30 33% – 31-40 20%– 41-50 34%– 51-60 8%– 60+ 5%

• Race / Ethnicity– Caucasian 55%– African-American 20% – Latina or Hispanic 18% – Other 8%

• Education – Grade school 3%– Some High School

18%– Graduated High

School 32%– Some College 39%– College 9%

• 17% were in school


Demographics – cont.

• Length of Services – Range 1-192 months– Average 21 months– Mode 0-6 months

• Average Annual Income – 0 - 10,000 - 49% – 10, 001 – 15, 000 – 12% – 15, 001 – 25, 000 – 26% – 25, 001 – 35, 000 – 9% – More than 35, 000 – 4% – 52% said it was either very difficult or extremely

difficult to live on their income


Prevalence of Economic Abuse

• Exploitation strategies:– 71% had partner pay bills late or not at all– 69% had partner spend money needed for rent or other

bills

• Controlling strategies:– 88% had partners who demanded to know how the money

was spent– 83% had partners making important financial decisions

without talking to tem first

• Employment sabotage strategies:– 68% had partners do things to keep them from going to work– 59% had partners demanding that they quit their job


Financial Literacy

• Participants were asked to rank their level of understanding for 51 items• 4-point Likert scale with answers ranging from not

true to very true

• Conducted exploratory factor analysis using principal axis factoring• Reduced 51 items to 13• Items organized into 4 factors:

– Knowledge about Credit (4)– Knowledge about Obtaining Resources (3)– Knowledge about Investing & Long Term Planning (4)– Knowledge about Joint Assets with Partner (2)


Financial Literacy Questions scale of 1-4 from not true (1) to very true (4)


Item Mean SDKnowledge about Credit

How to review my credit history 3.23 .92

How to review and understand my credit report and credit history 2.90 .99

How to improve my credit rating 2.79 1.0

What to expect if I try to get a loan 2.78 .97

Overall Mean = 2.92 (SD=.82)

Knowledge about Obtaining Resources

What community resources and public assistance benefits are available 3.20 .90The resources that are available in my community to assist me with the financial challenges I might encounter if I decide to leave my abuser

3.14 .86

How to get financial and legal assistance through local resources 3.02 .94


Knowledge about Investing and Long Term Planning

Planning for retirement and the different types of plans available 2.16 .97

How to invest my savings through things like savings bonds, mutual funds, and stocks 2.15 1.0

Estate planning 2.04 1.0

Community programs such as IDAs and EITCs 1.90 .96


Knowledge about Joint Assets with Partner

How to identify joint or combined financial responsibilities and assets 2.77 .99

How to identify my partner’s assets and financial responsibilities 2.56 1.0


Correlations


1 2 3 4 51 - Financial literacy2 - Economic empowerment .550**3 - Economic self-efficacy

.318** .516**

4 - Economic self-sufficiency

.222* .407** .519**

5 – Domestic violence

-.090 .069 .003 -.194

6 - Economic abuse

-.033 .094 .046 -.123 .775**

**. significant at the 0.01 level; * significant at the 0.05 level (2-tailed);

Interpretation of Correlations

• Results reveal positive and significant relationships between financial literacy and:– Economic empowerment– Economic self-efficacy– Economic self-sufficiency variables

• There were no significant relationships between financial literacy and any of the abuse variables.– Lack of significance could have occurred because of the

exploratory nature of the research design– Further research is needed to clarify if such relationships do

exist

• These significant relationships further our understanding of these terms and how they relate to each other.


Regression


Unstandardized B

SE Standardized

Financial Literacy .50 .10 .46**Domestic Violence .08 .10 .11Economic Abuse .08 .09 .12Length of Service (ref. = more than 24 months) Less than 6 months -.08 .14 -.06 Between 6 – 24 months -.11 .14 -.07Age (ref. = less than 30 years) -.05 .12 -.03 31-40 years -.10 .15 -.06 41-50 years -.06 .14 -.05 51 + .14 .19 .07Education (ref. = high school diploma) Less than high school diploma .12 .17 .08 Some college / college grad .19 .13 .15Income (ref. = Less than $10,000) $10,001-$15,000 -.19 .19 -.09 $15,001-$25,000 -.07 .13 -.05 $25,001 and higher -.18 .18 -.10Race (ref. = white) African American .32 .18 .18 Latina .31 .15 .19** Other .62 .21 .26**Economic self-sufficiency .14 .07 .21*Economic self-efficacy .10 .05 .20

NOTE: R2 = .6432; Adj-R2 = .544 *p ≤ .05, ** p ≤ .01.

Interpretation of Regression

• Regression analysis was used to determine whether financial literacy would predict participants’ level of economic empowerment, controlling for demographics (age, race, education, length of service and income), economic self-sufficiency, economic self-efficacy, and abuse (i.e. economic abuse and domestic violence).

• Results indicated that…– financial literacy– race (identifying as Latina or other, and – economic self-sufficiency

• were significant predictors of economic empowerment (R2 = 54%) • Supports the critical role of financial literacy education in

assisting survivors to gain the knowledge, confidence, & skills over their own financial well-being…all critical components to empower survivors.


Results from the exploratory research

• Asked participants on whether they had completed specific financial tasks since the curriculum– 88% identified signs of financial abuse in current or past

relationships– 88% set financial goals– 76% created a budget– 71% began paying off their debt– 65% opened a bank account– 64% looked up their credit history– 52% developed a financial safety plan– 22% started a retirement account


How did the Curriculum do?

• How often? – 56% referred to the curriculum when they had

questions

• How helpful?– 92% found the information helpful– 96% found the information useful– 91% found it beneficial for financial needs

• Tell anyone?– 74% shared information with other individuals

• 22% shared budgeting• 13% talked about saving money or credit• 11% shared the entire curriculum


Limitations

• Challenges with sample– Selection of sample limits generalizability

only to this sample– Size is small

• No control group or randomization• Some results only based on first round; more

testing is needed• Mix of standardized scales with relatively new

or recently revised instruments


Next step: First-ever Experimental Study

• Experimental study that randomly assigns survivors to control or experimental group– 4 areas of the country (NE, MW, Texas, & Puerto Rico)– 7 states & Puerto Rico; 14 agencies– Recruiting 600 women (300 in each group)

• Ability to incorporate lessons learned about data collection and survey instrument from the exploratory study

• Interviewing survivors 4 times over 14 month period

• Require minimum standards in survivor use of curriculum to ensure consistency across topics



Family of Origin Financial Practices

Financial knowledge

Financial attitudes

Economic self-efficacy

Economic self-sufficiency

Current financial norms

Financial behavioral intentions

Financial behaviors

Financial well-being

•Economic empowerment •Financial strain•Subjective satisfaction

Emotional well-being

•Qual. of Life•Depression•Anxiety•PTSD

The Allstate Foundation curriculum

Abuse

Demographic factors

Conceptual Framework using Theory of Planned Behavior

Experimental Study Process


Researchers maintain monthly contact with survivors in safe manner

Discussion & Implications

• Financial literacy and economic empowerment programs are effective in helping survivors:– Improve financial knowledge– Increase confidence about managing finances– Enhancing financial behaviors

• Continued exploration into use of financial literacy as intervention with survivors.– How to best deliver?– Unique challenges faced by racial, ethnic, &

immigrant populations


Conclusion

• Creating an innovative program AND partnering with others strengthens:– Domestic violence survivors– Domestic violence services– Decisions of key policy makers– Others researchers studying financial literacy

• Such a partnership brings greater attention to:– Understanding economic abuse– Strategies on how to economically empower survivors

• Commitment of The Allstate Foundation to fund research sets the standard for other corporate foundations to emulate– Encourages greater need to develop evidence-based

services


Selected Bibliography

• Adams, A. E., Sullivan, C. M., Bybee, D., & Greeson, M. R. (2008). Development of the Scale of Economic Abuse. Violence Against Women, 14(5), 563-588.

• Anthes, W. L., & Most, B.W. (2000). Frozen in the headlights: The dynamics of women and money. Journal of Financial Planning, 13(9), 10.

• Braunstein, S., & Welch, C. (2002). Financial Literacy: An Overview of Practice, Research, and Policy. Federal Reserve Bulletin, 88(11), 445.

• Farmer, A., & Tiefenthaler, J. (2003). Explaining the recent decline in domestic violence. Contemporary Economic Policy, 21(2), 158.

• Fawole, O. I. (2008). Economic Violence To Women and Girls: Is It Receiving the Necessary Attention? Trauma Violence Abuse, 9(3), 167-177.

• GAO (2004). Highlights of a GAO forum: The Federal Government's Role in Improving Financial Literacy (Report). Washington, DC: United States Government Accounting Office.

• Gowdy, E. A., & Pearlmutter, S. (1993). Economic self-sufficiency: It's not just money. Affilia, 8(4), 368-387.

• Hilgert, M. A., Hogarth, J. M., & Beverly, S. G. (2003). Household Financial Management: The Connection between Knowledge and Behavior. Federal Reserve Bulletin, 89(7), 7.

• Hogarth, J. M., & Hilgert, M. A. (2002). Financial knowledge, experience and learning preferences: Preliminary results from a new survey on financial literacy. Consumer Interest Annual, 48, 1-7.


• Hopley, V. (2003). Financial education: what is it and what makes it so important? Cleveland, OH: Federal Reserve Bank of Cleveland.

• Itzhaky, H., & Porat, A.B. (2005). Battered women in shelters: Internal resources, well-being, and integration. Affilia, 20(1), 39-51. Johnson, E., & Sherraden, M. S. (2007). From Financial Literacy to Financial Capability among Youth. Journal of Sociology & Social Welfare, 34(3), 119-146.

• Perry, V. G., & Morris, M. D. (2005). Who is in control? The role of self-perception, knowledge, and income in explaining consumer financial behavior. Journal of Consumer Affairs, 39(2), 299-313.

• Sanders, C. K., & Schnabel, M. (2006). Organizing for economic empowerment of battered women: Women's savings accounts. Journal of Community Practice, 14(3), 47-68.

• VonDeLinde, K. C., & Correia, Amy. (2005). Economic education programs for battered women: Lessons learned from two settings. Building Comprehensive Solutions to Domestic Violence retrieved from www.vawnet.org, 18, 1-25.

• Vyas, S. W., C. (2008). How does economic empowerment affect women's risk of intimate partner violence in low and middle income countries? A systematic review of published evidence. Journal of International Development, 21(5), 25.

• Weaver, T. L., Sanders, C. K., Campbell, C. L., & Schnabel, C. (2009). Development and preliminary psychometric evaluation of the Domestic Violence--Related Financial Issues Scale (DV-FI). Journal of Interpersonal Violence, 24(4).


http://www.vawnet.org/

Contact Information

Center on Violence Against Women & ChildrenRutgers, School of Social Work

536 George Street * New Brunswick, NJ 08901732-932-7520 x163 * http://vawc.rutgers.edu

Judy L. Postmus, Ph.D., ACSW [email protected]


http://vawc.rutgers.edu/

mailto:[email protected]

center on violence against women and children economically empowering survivors of domestic violence...

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