Financial dependence

The terms financial dependence and financial independence are used regularly in media, society and financial services today.

Before moving on, take a moment to answer these questions.

• What does it mean to be financially dependent?
• What does it mean to be financially independent?
• Is financial independence the purpose of life?
• Have you ever heard of financial interdependence?

Let’s explore starting with financial dependence.

Financial dependence occurs when a person is dependent upon another for their financial support.

This is the case for most people from their birth until they are working and supporting themselves.

However, once you begin working, you are dependent on your ability to “do the work”.