Alzheimer’s disease is a form of dementia that affects the brain areas responsible for reasoning, comprehension, memory, and judgment.
The disease may initially cause mild memory loss or forgetfulness in some individuals, but it can progressively worsen. A person with Alzheimer’s might begin to forget significant parts of their day or struggle with managing daily tasks.
These challenges can encompass managing money, paying bills, or making sound financial decisions.
If you are caring for someone with Alzheimer’s disease, recognizing signs of financial trouble is crucial to prevent mismanagement of funds and financial exploitation.
Signs of Financial Problems
Living with Alzheimer’s disease can present a range of challenges, and personal finance is an often-overlooked area. A 2021 study indicated that a decline in financial management is among the earliest symptoms of Alzheimer’s disease and related dementias.
In individuals with Alzheimer’s, changes in memory, decision-making, and cognitive abilities can significantly impact their capacity to handle money effectively.
Unpaid Bills or Neglected Financial Responsibilities
A person with Alzheimer’s disease may forget to pay bills, resulting in late fees, overdue notices, and disruption of utility services. Additionally, they might appear confused when discussing financial matters.
Excessive Spending
You may observe impulsive purchases or excessive spending on unnecessary items, which can lead to credit card debt or insufficient funds to pay bills. This behavior often stems from impaired judgment.
Misplacing Financial Items
A person with Alzheimer’s may frequently lose their wallet, credit cards, or important documents such as bank statements.
Difficulty Managing Basic Financial Tasks
Alzheimer’s disease impairs memory and reasoning, making financial tasks increasingly difficult. You may notice trouble with basic math, understanding bank statements, or managing a checkbook.
Unusual Generosity
Some individuals with Alzheimer’s may become uncharacteristically generous, giving away money or possessions without considering the consequences. They are also more susceptible to scams and poor financial decisions due to declining critical thinking skills.
Loss of Money
One concerning sign is the unexplained loss of money. You might see unusual charges on their bank statements, unexpected ATM withdrawals, or money disappearing from their accounts, which they may be unable to explain due to memory loss or confusion.
How Caregivers Can Help Manage Finances
If you observe signs of financial difficulties, there are proactive steps you can take to assist.
For instance, if the person is struggling to pay bills or neglecting other financial responsibilities, you can offer practical support such as:
- Setting up automatic bill payments
- Requesting electronic statements
- Creating due date reminders
Excessive Spending and Impulsive Purchases
Excessive spending and impulsive purchases can be a significant concern. You can help mitigate this by closely monitoring their financial transactions, regularly reviewing bank statements and credit card bills for any unusual activity.
Additionally, you might discuss budgeting strategies, establish spending limits, or even offer to manage financial accounts jointly if necessary. For example, if you notice an increase in online purchases, you could set up a separate account with a limited amount of funds available for such transactions. Alternatively, you can reduce the spending limit on credit cards.
This approach allows the individual to maintain some financial independence while protecting their financial health.
To further support their sense of financial independence, consider the following strategies:
- Create a system to keep financial items secure and easily accessible, such as designating specific places for wallets and credit cards and using sticky notes as reminders.
- Provide simplified instructions for tasks like budgeting and paying bills.
- Use large-print checkbooks or create a visual budgeting chart to track expenses.
- Utilize apps or device reminders to assist with bill payments, appointments, and medication schedules.
- Reinforce the importance of not sharing sensitive financial details with strangers.
- Discuss their future care wishes as soon as they receive a diagnosis.
How to Avoid Financial Abuse and Fraud
Financial abuse occurs when someone exploits a person’s money or property for their own benefit. This can happen when a caregiver, family member, or acquaintance tricks the person, steals from them, or forces them to give away their money or belongings. Such abuse can leave the individual without the resources needed to live comfortably.
To avoid financial abuse, regularly discuss financial matters with the person to ensure they understand the importance of protecting their assets. Encourage them to seek advice from you or a trusted professional before making significant financial decisions.
Implementing a living will and designating a power of attorney or a trusted person to help manage their finances can also be beneficial. This person will have their best interests at heart and can act responsibly. They can monitor financial transactions, review bank statements, and oversee any changes.
Educating yourself and your loved ones about common scams targeting older adults is essential. Teach them to be cautious about sharing personal and financial information, especially over the phone or online.
Tips for Managing Costs: Resources for Caregivers
The expenses associated with Alzheimer’s disease can add up quickly. Here are several resources to help manage costs and protect the finances of someone living with this condition:
- Medicare and Medicaid: Medicare is a federal health insurance program for individuals ages 65 and older, while Medicaid is a federal and state program that provides healthcare coverage for low-income individuals.
- Alzheimer’s Association: This organization offers a free online program to educate caregivers on the cost of care, managing expenses, avoiding financial abuse, and other important topics.
- National Adult Protective Services Association: Focuses on preventing elder abuse, including financial exploitation.
- National Center on Elder Abuse: Provides resources and advice for families, professionals, and advocates, including educational materials to help prevent elder abuse.
- Eldercare Locator: Offers a nationwide directory of local resources and services for older adults and their families.
- Federal Trade Commission (FTC): Visit the FTC website for information on common scams, tips for prevention, and guidance on reporting fraudulent activities.
- Department of Veterans Affairs (VA): If the person you’re caring for is a veteran, the VA may cover healthcare, respite care, caregiver support, and adult day care programs. Additionally, the VA offers Aid and Attendance programs and Housebound allowances for veterans and their surviving spouses to assist with in-home care services and supervision.
- State Veterans Homes: Long-term care facilities providing nursing home care to eligible veterans.
- Rebuilding Together: A national nonprofit organization that offers home repair and modification services for low-income individuals, including those with disabilities or medical conditions.
Additional Resources for Financial Assistance:
- PhRMA’s Medicine Assistance Tool
- Aduhelm PATH Program
- NeedyMeds
- GoodRx
- Diaper Banks
These resources can provide much-needed support in managing the costs associated with Alzheimer’s disease, ensuring the financial well-being of both the individual and their caregivers.
The Takeaway
Dealing with Alzheimer’s disease can be challenging and overwhelming for both the person living with the condition and their loved ones. However, assistance is available to help manage the costs of care and safeguard personal finances.
Remember, you’re not alone. For immediate assistance, call the Alzheimer’s Association helpline at 800-272-3900. They offer free, confidential help to people living with Alzheimer’s disease, as well as their caregivers and families.