New research reveals that financial difficulties, such as missed bill payments and unusual spending patterns, can serve as early warning signs of dementia - sometimes appearing up to a decade before a formal diagnosis.
The Financial Footprints of Cognitive Decline
Experts from the Alzheimer's Society warn that as dementia develops, people often begin struggling with money management, bills and financial affairs. A comprehensive study from the New York Federal Reserve, which analysed both credit reporting and medical data, found that credit scores can begin to weaken up to five years before a dementia diagnosis.
Researchers identified common patterns among those later diagnosed with dementia, including missed bills, final payment warnings, utility disconnections and unusual spending habits. The study authors noted: "The harmful financial effects of undiagnosed memory disorders exacerbate the already substantial financial pressure households face upon diagnosis."
Medical Research Confirms the Pattern
Studies published in leading medical journals support these findings. Research in JAMA Internal Medicine discovered that people started missing bill payments up to six years before diagnosis, while another investigation in JAMA Network Open highlighted early signs appearing up to ten years before individuals relinquished control of their finances due to diminished capacity.
Victoria Lyons, an Admiral Nurse at Dementia UK, explained: "Problems with managing money can be one of the earlier signs of dementia. The condition affects the brain's ability to process information, make decisions and manage tasks that require planning, like handling money."
Five Key Financial Warning Signs
Lyons highlights five specific areas that could indicate early dementia:
- Struggling with simple tasks: Difficulty paying bills, understanding bank statements, or accessing online accounts
- Unusual spending: Purchasing unnecessary items or giving away money unusually to charities, friends or strangers
- Repeated or missed payments: Forgetting to pay bills entirely or paying them multiple times
- Losing track of cash or cards: Regularly misplacing cards, forgetting PINs, or withdrawing money without remembering the purpose
- Falling for scams: Becoming increasingly vulnerable to fraud, cold calls or online scams due to impaired judgement
While these behaviours don't automatically indicate dementia, they become particularly concerning when combined with memory lapses and other behavioural changes.
Balancing Safety with Independence
The Alzheimer's Society emphasises that financial struggles don't necessarily mean immediately handing over complete financial control. With proper support, people living with dementia can often manage day-to-day finances for longer periods.
Practical solutions include using chip-and-signature cards instead of PIN-based transactions, setting up direct debits for automatic bill payments, and providing support only for complex financial decisions while maintaining independence in daily spending.
Experts recommend that carers monitor finances gradually over time, discuss money management openly with the person, and intervene only when necessary. Arranging powers of attorney for complex decisions while leaving daily spending under the individual's control can strike the right balance between protection and autonomy.
The key, according to specialists, is ensuring people with dementia maintain as much control as possible over their money while being safeguarded from potential financial harm.
