Economic harm and parental leave: What parents and employers need to know
Becoming a parent can be one of the most financially vulnerable moments in a person’s life. During parental leave, the primary carer often becomes more reliant on their partner’s income — which can increase their risk of experiencing economic harm.
What is economic harm?
Economic harm — also called economic abuse or financial abuse — refers to behaviour that restricts, controls, or removes someone’s access to money, economic resources, or financial decision-making. It is often a form of family or intimate partner violence, and it can take many forms, from subtle control to overt coercion.
According to Good Shepherd, examples of economic harm include:
Being forced to ask for money for basic needs
Having to justify or explain every purchase
Being pressured or forced to give up a job, or to take or reject work
Being excluded from knowledge of or decision-making about household finances or debt
These behaviours can erode a person’s autonomy, limit their choices, and have long-term impacts on financial wellbeing, credit, and safety.
Why new parents, especially primary carers, are more vulnerable
Primary carers, most often women, are more financially dependent during parental leave. They may have a reduced or paused income and may not be in paid work. Research shows that this dependence can be a tipping point for coercive financial behaviours to emerge or escalate.
A report by Good Shepherd NZ found that many women first experience economic harm during pregnancy or shortly after childbirth — a time when they are physically and emotionally more vulnerable.
Signs you (or someone you know) might be experiencing economic harm
If your answer is yes to one or more of these questions, you may be experiencing economic harm:
Do you have to ask for money or explain how much you spend on everyday items?
Have you been pressured to give up a job, stay at home or go to work against your will?
Are you pressured to behave a certain way to access money?
If your answer is no to one or more of these questions, that may also be a red flag:
Do you have access to personal and shared bank accounts?
Are you informed about family debt?
Do you share decision-making over household finances?
What can you do if you’re affected?
Talk to someone you trust. Emotional and economic abuse often go hand-in-hand, and it can be difficult to recognise without an outside perspective.
Seek professional help. Organisations such as Good Shepherd NZ and Shine offer support to people experiencing financial or domestic abuse.
Plan for safety and independence. In some cases, support may include financial coaching, emergency assistance, or help setting up a separate bank account or credit history.
What employers can do
Employers can play an important role in supporting employees who may be vulnerable to economic harm:
Provide confidential access to EAP or financial counselling services as part of the parental leave or employee wellbeing offering
Create a supportive and informed HR process for leave planning and return-to-work conversations
Avoid making assumptions about partners or household financial arrangements
Final thoughts
Parental leave should be a time of support, bonding, and new beginnings, not one of increased vulnerability. Understanding the signs of economic harm is essential for parents, employers, and support networks.
If you or someone you know may be experiencing economic harm, you can find more information and confidential support through:
Financial control is not care. If something feels off, trust your instincts — and know that help is available.
Now for the important legal part: The information we provide is general and not regulated financial advice for the purposes of the Financial Markets Conduct Act 2013. Please seek independent legal, financial, tax or other advice in considering whether the content in this article is appropriate for your goals, situation or needs. The information in this article is current as at 5 May 2024.
Stephanie Pow
Founder & CEO of Crayon