Managing finances and paying bills can become much harder after a dementia diagnosis. Dementia affects memory, judgment, and the ability to make decisions, which means everyday money tasks—like writing checks, paying bills on time, or spotting scams—can get confusing or overwhelming. But with some planning and support, it’s possible to stay in control of your money and protect yourself from mistakes or fraud.
## Why Finances Get Harder
As dementia progresses, people often lose awareness of their own difficulties with money. This is sometimes called “financial anosognosia.” Even when someone’s ability to handle finances declines, they might not realize it. This makes them more likely to make mistakes or fall for scams because they don’t recognize the risk.
## Steps to Protect Your Money
**Set Up Safeguards Early**
It’s smart to put protections in place as soon as possible after a diagnosis. This could mean giving a trusted family member or friend access to help manage accounts (with legal permission), setting up automatic bill payments so nothing gets missed, and simplifying bank accounts by reducing the number you have open.
**Simplify Money Management**
Try to make financial tasks as easy as possible. Use direct deposit for income like Social Security or pensions. Keep important documents organized in one place—like bills, bank statements, insurance papers—and consider using a filing system that’s easy for you (or your helper) to follow.
**Monitor Accounts Regularly**
Check bank statements and credit card bills often for any unusual activity. If you notice charges you don’t recognize or strange withdrawals, report them right away. Many banks offer alerts that can notify you if something unusual happens with your account.
**Protect Personal Information**
Be careful about sharing personal details like your Social Security number or banking information over the phone or online unless you are sure who you are talking to. Scammers often pretend to be from government agencies (like Social Security), banks, charities—even grandchildren in trouble who need money fast.
**Stay Informed About Scams**
Scams targeting older adults are common and always changing. Stay updated on new tricks by checking with local agencies that focus on elder care or consumer protection.
## Practical Tips for Everyday Spending
There are small changes that can help stretch your budget further:
– **Shopping:** Look for sales at discount stores; use coupons; compare prices before buying.
– **Entertainment:** Borrow books and movies from the library instead of buying them; wait until movies come out at home rather than going out.
– **Transportation:** Carpool when possible; use public transit if available; join gas rewards programs.
– **Housing:** Keep up with home maintenance so small problems don’t turn into expensive repairs later; check if there are property tax breaks for seniors where you live.
– **Bills:** Review monthly services like cable TV and internet—sometimes downgrading plans can save money without losing what matters most.
Even making just one change at a time can add up over months and years.
## Legal Planning Is Important
Estate planning becomes especially important after a dementia diagnosis because it helps ensure your wishes about health care decisions will be respected even when communication becomes difficult due cognitive decline — this includes having durable powers attorney both finance healthcare matters set advance directives living wills place while still able express preferences clearly also consider setting trusts manage assets avoid probate process which lengthy costly stressful families during already challenging times gifting strategies may reduce estate taxes but should done carefully guidance professional familiar laws state live .
Having these documents prepared early gives peace mind knowing affairs order according plan rather than leaving things chance court intervention later down road .
## Build A Support Network
Don’t try do everything alone . Talk openly family friends trusted advisors about concerns goals regarding finances . Letting others know situation allows them step assist needed whether reminding pay certain bill helping spot suspicious activity account simply being second pair eyes review important paperwork together regularly scheduled meetings keep everyone same page prevent misunderstandings disagreements future .
Remember , managing finances after dementia diagnosis isn’t
