Dementia can significantly impact decision-making abilities.
Currently, over 6 million individuals in the U.S. are living with dementia, leading to a gradual decrease in cognitive functions like memory, language skills, and the ability to solve problems, all of which affect daily life.
Early indicators of dementia often include memory lapses, trouble finding the right words, and disorientation. Experts in neuropsychology caution that difficulties in managing finances can also point to serious health issues.
Research suggests that older adults who actively manage their finances may retain their cognitive capabilities longer compared to those who don’t. “It’s been shown that individuals with dementia can initially manage basic tasks like paying bills or using an ATM,” shared Bonnie E. Levin, the director of neuropsychology at Miami Miller University School of Medicine.
However, as the condition progresses, even routine activities like making purchases or calculating tips can become challenging.
These signs could indicate cognitive decline, prompting suggestions to safeguard older adults against financial abuse.
Warning Signs to Watch For
- Missed monthly bills
- Unopened or unpaid invoices
- Unnecessary or unexpected expenditures
- Frequent new purchases on credit cards
- Questionable or unaccounted cash withdrawals
- Repeated failed logins to online banking accounts
- Missing or misplaced cards
- Resetting PINs frequently
Levin, who also serves as the Associate Director of the Evelyn F. McKnight Brain Institute, emphasized that not every memory slip or accident is a sign of dementia. “The brain ages, just like the rest of the body. Forgetting where you left something or occasionally missing a payment can be completely normal, often not indicating any serious issues,” she noted.
Nonetheless, missed payments, confusion about time, changes in mood or behavior without clear reasons, and repetitive questioning might signal more significant memory problems.
If these concerns arise, it’s vital to consult healthcare professionals who can help identify the root issues and suggest appropriate treatments.
Establishing Financial Protections
Addressing these early signs can be crucial in preventing financial difficulties for both older individuals and their families.
Families dealing with dementia might consider creating a monthly budget, setting up automatic bill payments, and utilizing tools to help manage spending.
“Technology can be a valuable ally for older adults with dementia,” Levin mentioned, adding, “Expense trackers and alert systems can monitor unusual transactions or repeated expenditures that may indicate a problem.”
If concerns arise, reviewing an individual’s internet purchase history or checking official accounts could provide clarity.
It might also be worthwhile for older adults to empower trusted family members or legal guardians to oversee their financial affairs.
“Assigning responsible loved ones to handle the financial, medical, and legal needs of older family members can help prevent exploitation by ensuring decisions are made by reliable individuals,” Levin advised.
Be Cautious of Financial Scams
A decline in financial capacity not only increases the risk of unpaid obligations but also makes individuals more susceptible to fraud and exploitation, Levin explained.
Financial scams targeting older adults have existed for some time but have become increasingly sophisticated due to technology advancements.
Common scams involve impersonating government officials, such as those pretending to be from Medicare, as well as fake sweepstakes or lottery winnings that require payment to claim. Additionally, various tech support scams targeting seniors can lure them into paying for supposed computer issues that don’t actually exist.
By implementing protective financial measures, families can significantly lessen the risk of fraud, limit unauthorized access, and facilitate quick detection of potential issues.
