How a secret ‘Freedom Fund’ can help women escape financial abuse

Financial freedom encompasses a variety of meanings, from repaying a mortgage to securing retirement or accumulating wealth. However, for women trapped in financially abusive relationships, financial independence may simply entail having sufficient funds to depart. A November 2025 survey by the Human Sciences Research Council on violence against women found that one in eight South African women aged 18 and above have endured financial abuse, while over half reported controlling behaviors in their relationships.

"Women are frequently harmed and even killed for attempting to end a relationship with an abuser," asserts Simon Dippenaar, the founder of the law firm Simon Dippenaar & Associates. "Therefore, meticulous planning is crucial, and your escape strategy must encompass your finances," he continues.

Financial abuse erodes autonomy, explains Khensani Nobanda, the group executive for marketing and corporate affairs at Nedbank. A woman whose earnings are dictated by an abusive partner is not financially autonomous. Someone barred from employment is not financially autonomous. Someone ensnared in debt, denied access to their own bank account, or subjected to daily financial oversight is not financially autonomous, she elaborates.

Financial freedom transcends mere ownership of financial products, Nobanda underscores. "It's agency," she states. "It's waking up each day knowing that you, not someone else, governs your financial decisions. It's having the capacity to earn, save, invest, spend, and build wealth without apprehension, coercion, or reliance. It's recognizing that your financial destiny hinges on your choices rather than someone else's control."

According to Hayley Parry, head of education at Worth, financial autonomy rests on two pillars: a conventional emergency fund and a distinct personal "Freedom Fund". For the emergency fund, Parry suggests having three to six months' worth of living expenses in a reserve account. The Freedom Fund, on the other hand, is a clandestine emergency fund that no one, except the individual, is privy to.

"The concept is that this is money set aside with the expectation that you will never utilize it, but it's there if you require the financial leeway to escape a toxic relationship—or even a demanding employer," Parry elucidates. This Freedom Fund should remain confidential and serve exclusively as a financial escape route if necessary, she adds.

Parry also posits that women could establish such safety nets collectively, likening them to a shared stokvel. She emphasizes that women should cultivate financial autonomy and assume control over every facet of their financial life, from earnings and savings to retirement planning. "It's imperative that you establish and maintain your personal financial identity, irrespective of the state of your relationship," Parry advocates.

"If you possess your own income, you are in a relatively robust position. However, you may have been barred from employment by your partner or confined to a scant allowance." Dippenaar stresses that financially abused women should open a new bank account with an institution unrelated to their partner's, ideally visiting the bank to converse with an adviser and circumvent correspondence reaching the home.

Bank staff have encountered similar scenarios and can provide assistance, Dippenaar asserts. Nedbank's chief risk officer, David Crewe-Brown, observes that financial abuse often leaves a discernible financial trace that may be misconstrued as poor financial behavior. Individuals experiencing coercive control might fail to meet repayment deadlines, accrue debt they did not voluntarily incur, or experience irregular income due to being barred from employment.

Crewe-Brown emphasizes that, according to conventional risk models, these behaviors might be perceived as heightened credit risk but could actually signify financial abuse. He notes that financial records alone do not always illuminate the full narrative. "Women must strategize their finances early to be prepared to leave a toxic relationship," Parry advises.

"Without personal resources, the efficacy of your financial planning becomes the deciding factor between surviving independently and returning for economic subsistence," Dippenaar concludes.