When a loved one is on the road to recovery, you may find out that they’ve unintentionally put themselves in a difficult financial position while they were in the throes of addiction. The cost of the addictive behavior can add up quickly, and could often lead to other financial implications that can harm credit or reduce income.

One study found that over 50% of individuals did not have access to accounts at insured financial institutions as they entered treatment facilities, while the majority (78%), believe that money management skills were important to their recovery. This signals an opportunity for safe and supported options for those in recovery from addiction to build sound money management skills, and loved ones can help play a role in this process.

Once your loved one is solidly on the recovery journey, concrete action can be taken to help support their path to improved financial management. Here are a few tips that could help a loved one begin to build back their finances while on their recovery journey:

1. Find a job in a healthy work environment

Help your loved one find a consistent job that can fit with their specific situation — whether part-time or full-time — to help them pay for basic bills, but doesn’t tempt them to return to addictive behaviors. A professional who has counseled them may have ideas on the best type of work environment for them during their recovery. 

2. Take steps to improve credit standing

Work with a financial counselor who can help your loved one pay off outstanding debt, including money you may have loaned them to support their recovery, and restore their credit rating. Be sure to talk with the counselor about the impact of public assistance – such as Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI) or nutrition assistance – on their finances. The financial counselor may also be able to help if your loved one's addiction caused legal or tax issues, or can refer you to another expert. 

3. Re-establish a consistent savings habit when possible

Encourage your loved one to start building an emergency savings account. Consider their income and maybe talk to the financial counselor about a reasonable total goal and how much to contribute each month. Consistently saving even a small amount each month can help your loved one get back in a habit of building savings. 

4. Use technology to help provide safeguards

With the True Link Visa® Prepaid Card, your loved one can buy what they need, and you can use settings to block access to cash and restrict spending at trouble spots like bars, liquor stores, casinos, or gambling websites. You can also receive alerts if your loved one tries to use the Visa card at a blocked merchant or makes a suspiciously large purchase. Many loved ones use these alerts both to keep an eye on their loved one’s behavior, but also as a prompt to check in with a text or phone call. 

5. Adapt and evolve as the situation improves

As your loved one becomes more solid in their recovery, you can ease up on some of their spending restrictions by changing settings to meet their evolving needs. This will give them a greater sense of independence and confidence as they move past tighter restrictions, while still allowing you to help them avoid sliding back into harmful behavior.

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In the journey of recovery, financial stability plays a crucial role in helping your loved one rebuild their life. While managing debt, rebuilding credit, and resolving legal or tax issues may feel overwhelming, taking small, practical steps can make a meaningful difference in this important part of their recovery process.

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