People with Alzheimer’s disease or a related dementia often have problems managing their money. Research shows that money problems may be one of the first noticeable signs of the disease.
Early on, a person with dementia may be able to perform basic tasks, such as paying bills, but they are likely to have problems with more complicated tasks, such as balancing a bank account. As the disease gets worse, the person may try to hide financial problems to protect their independence. Or the person may not realize that they are losing the ability to handle money matters.
Signs of money problems
Look for signs of money problems such as trouble counting change, paying for a purchase, calculating a tip, balancing a checkbook, or understanding a bank statement. The person may be afraid or worried when they talk about money. You may also find:
• Unopened and unpaid bills
• Lots of new purchases on a credit card bill
• Unexpected new merchandise in the home
• Money missing from the person’s bank account
A family member or legal representative should check bank statements and other financial records each month to see how the person with dementia is doing and step in if there are serious concerns. This can protect the person from becoming a victim of financial abuse or fraud.
Take steps early
Understandably, many older adults will resist allowing someone else to take over their financial affairs. To provide support while also respecting the person’s independence, a family member or trusted friend can do several things to help the person with dementia:
• Start a conversation about the importance of a monthly budget. Help the person develop a spending plan on paper. If the person is comfortable with computers or a smartphone, share information about secure online budgeting tools, many of which are free.
• Set up automated bill payments. Arrange for utilities, mortgage, rent, and other expenses to be paid through automatic deductions from a bank account. This will ensure that bills are paid correctly and on time.
• Discuss ways to help manage spending. Consider giving the person small amounts of cash to have on hand, reducing the spending limit on credit cards, and canceling unneeded credit and debit cards. Offer to go grocery shopping or have items delivered to reduce overspending and ensure the person has what they need at home.
To learn more about managing money problems for people with dementia, from the National Institute on Aging, CLICK HERE.