A dementia diagnosis brings many changes, including challenges with managing money. As memory and decision-making abilities decline, it’s essential to take proactive steps to safeguard finances and maintain independence for as long as possible.
Recognizing Early Signs and Taking Action
In the early stages, you may still be able to handle day-to-day money matters like paying for groceries or small bills. However, more complex tasks—balancing a checkbook, managing investments, or keeping track of multiple accounts—can become difficult. It’s important to notice signs such as missed payments, unopened bills, or confusion about transactions. Taking action early helps prevent financial mistakes and reduces the risk of scams or exploitation.
Practical Steps for Managing Money
- Automate Payments: Set up direct debits or standing orders for regular expenses like rent, utilities, and subscriptions. This ensures bills are paid on time without needing to remember due dates.
- Simplify Finances: Reduce the number of accounts and credit cards. Consider lowering spending limits or canceling unnecessary cards to minimize the risk of overspending.
- Use Cash Wisely: Withdraw a set amount of cash for weekly expenses and keep it in labeled envelopes for different needs, such as groceries or personal items.
- Bank Support: Inform your bank about your diagnosis. Many banks offer services for people with dementia, including chip-and-signature cards, large-print statements, and dedicated support staff.
- Monitor Accounts: Regularly review bank statements with a trusted family member or friend to spot unusual activity or errors.
Planning for the Future
- Power of Attorney: Set up a lasting power of attorney (LPA) or similar legal arrangement while you still have the capacity to make decisions. This allows someone you trust to manage your finances if you become unable to do so.
- Family Discussions: Talk openly with loved ones about your wishes and plans. Involving them early helps avoid confusion and ensures your preferences are respected.
- Financial Planning: Consider the costs of future care and explore available benefits or insurance policies that may help cover expenses.
Staying Safe from Scams
People with dementia are more vulnerable to financial scams. To reduce the risk:
- Avoid sharing bank details with strangers or over the phone.
- Register with services that block unwanted calls and mail.
- Place a ‘no cold callers’ sign on your door.
- Ask for identification from anyone claiming to be from a utility or financial company.
When More Support Is Needed
As dementia progresses, you may need increasing help with finances. Family members or appointed attorneys can gradually take over more responsibilities, starting with complex decisions while you retain control over everyday spending. The goal is to support your independence for as long as possible, stepping in only when necessary.
Managing money with dementia requires planning, support, and regular review. By taking practical steps early and involving trusted people, you can protect your finances and focus on living well with dementia.
