Knowing when to take over finances for someone with dementia is crucial to protect their well-being and financial security. Dementia often affects memory, judgment, and decision-making skills, which can lead to financial mistakes or vulnerability to scams. Early signs that it may be time to step in include missed bill payments, unusual or excessive spending, and difficulty managing routine financial tasks such as balancing a checkbook or paying bills on time. If a person who previously managed money well starts showing confusion about transactions, repeatedly asks the same financial questions, or abandons budgeting habits, these are strong indicators of cognitive decline affecting their financial capacity.
Other warning signs include sudden changes in financial behavior, such as taking uncharacteristic risks with investments or losing interest in managing money altogether. Disappearing funds or unexplained withdrawals can also signal trouble. Additionally, if the person becomes a target of scams or fraud, or if they have trouble with simple math or filling out forms, it is important to consider taking control of their finances to prevent harm.
It is helpful to monitor financial statements regularly and look for patterns like duplicate payments, forgotten bills, or unfamiliar charges. These subtle red flags often appear years before a formal dementia diagnosis. Family members, caregivers, and financial advisors should communicate openly and consider legal steps such as establishing a power of attorney to manage finances responsibly.
Taking over finances should be done with empathy and respect, involving the person with dementia as much as possible to maintain their dignity. Early intervention can prevent financial loss and reduce stress for both the individual and their loved ones.
Sources
https://www.olderaleighfinancial.com/orfg-resources/when-memory-and-money-intersect-signs-of-dementia
https://www.allaboutestates.ca/aarp-banksafe-dementia-hub/
https://www.alzheimersresearchuk.org/news/spotting-early-signs-that-could-be-dementia-when-should-you-worry/
https://www.sunriseseniorliving.com/resources/caregivers-and-families/signs-elderly-parent-needs-help
https://thedacare.org/alzheimers-warning-signs-9-symptoms-to-watch-for/
https://courtyardgardensseniorliving.com/early-signs-memory-loss/
