It means a lot to be financially stable. And if you want to be financially secure now and in the future, you must stop financial exploitation. Financial exploitation can ruin your finances if it is not taken seriously.
What exactly is financial exploitation?
The illegal or improper use of another person’s resources for personal profit or gain is referred to as financial exploitation. Also known as “financial abuse,” “economic abuse,” and “financial mistreatment.”
Here are some examples:
Misappropriation of income or assets – The perpetrator obtains access to an older adult’s social security, pension, checking or savings account, online banking account, credit, ATM, or debit card, or withholds portions of checks cashed for an older adult.
Charging exorbitant rent or service fees– The perpetrator charges an elderly person an exorbitant rent or unreasonable fees for basic care services such as transportation, food, or medication.
Obtaining money or property through duress, misrepresentation, or fraud –Through manipulation, intimidation, or threats, the perpetrator coerces an older adult into signing over investments, real estate, or other assets.
Using a power of attorney or fiduciary authority improperly or fraudulently -The perpetrator uses the power of attorney or fiduciary authority improperly or fraudulently to change an older adult’s will, and borrow money in an older adult’s name, or dispose of an older adult’s assets or income.
Keeping extra money – Paid caregivers save their grocery change.
Card theft, financial theft, medical theft, mail theft, and other types of theft are all possible.
So, how do you prevent financial exploitation?
Financial abusers and exploiters are so consumed by their desires that they may not notice that you’ve taken precautions to protect your heart and finances at first. When they do, you can expect them to come on stronger, pressurize you into a closer relationship, and reveal a darker side of themselves to you. Put these tips into action once this person enters (or re-enters) your life.
Keep in touch with people of all ages. Having people who care about you, whether through a club, civic organization, or church, makes it easier to spot abuse. It also provides you with someone to contact who will support you.
If you have the time, be generous with your time and look for a volunteer opportunity that interests you. It will not only benefit someone else, but it will also boost your sense of community and self-worth.
Speak with a counselor if your self-esteem could use a boost. Don’t expect a new relationship to make things better. You put in the effort and reap the benefits.
Examine your bank statements regularly.
You must sign your checks. Sign “blank checks,” which allow another person to fill in the amount or the recipient’s name. If you need assistance writing checks before signing them, have a third party review the check and take it to the bank.
If you have someone helping you manage your finances, have a trusted third party review your bank statement.
Do not sign any document unless you have thoroughly read it.
Do not sign any agreement until it has been reviewed by a trusted friend, other advisors, or an attorney. If possible, have the agreement reviewed by two advisers.
Never lend money in exchange for a general promissory note.
Do not sign over money or property to anyone, even a family member or friend, in exchange for care unless the agreement has been reviewed by an attorney. The contract must be in writing. Give a copy to someone else.
Protect your ATM, debit, and credit cards. Notify your bank right away if one goes missing.
Do not give out card information over the phone unless it is to a regular customer.
Allow no one, not even a relative, to put their name on your account without your express permission. Instead, your bank can open a separate account in both names with automatic transfers of limited funds.
Take control of your phone. Anyone else should not read your texts, look at your search history, or otherwise touch your phone.
Check your email. A financial abuser will try to learn about your business under the guise of “helping.”
It is critical to protect your finances from exploitation to build the wealth you have always desired. These are some helpful hints to help you avoid financial exploitation.Featured Image Source: People Daily
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