Alzheimer’s is a type of dementia that impacts memory and other cognitive abilities. According to the Alzheimer’s Association, more than 7 million Americans currently have dementia. Out of the 7 million, 11% of those aged 65 and over live with this disease. As the elderly population rises, so will the number of seniors who live with dementia. In this case, it is important for families to know how to support their elderly loved ones as they endure this diagnosis.
Elderly adults with dementia struggle to complete daily tasks independently, including managing their finances. They may struggle to pay bills on time or forget their bank account information. This could lead to an elderly adult falling into credit card debt or losing money to fraud. Helping your loved one manage dementia and money can be challenging at first, but with the right resources, you can help them maintain financial security for the future.
Recognizing the Signs
From 1998 to 2008, economists Joanne W. Hsu and Robert Willis conducted a study on Americans over age 50 and their spouses. The results of this study on spousal caregiving showed that 80% of spouses living with dementia still managed the finances.
This can have life-altering consequences for couples and their families. Your loved one could be making serious mistakes, like spending money you had planned to set aside for dementia home care, without realizing it. And if you wait too long to have a discussion, their cognitive impairments may prevent them from explaining the situation correctly.
Some ways to know if your spouse or loved one with dementia is having difficulties managing finances include:
- Unpaid or unopened bills
- Frivolous spending
- Missing money from their bank account
- Unable to remember PIN or bank account information
If you find one or more of these consistently occurring, it may be time to sit down and discuss transitioning the family finances.
Making the Change
Talking with your loved one about dementia and money is not easy. If your loved one is defensive or avoidant when talking about money, start with a gentle and understanding approach. Let your spouse or family member know that you care for them and want to be kept in the loop when they are purchasing items.
The National Institute on Aging offers some tips to help keep your loved one’s finances secure:
- Developing a Monthly Budget: You can set a specific amount your loved one can spend each month and help them keep track of their spending on their phone or in a notebook.
- Automated Bill Payments: Arranging for major bills like rent and utilities to be paid automatically prevents late payments and late fees.
If their condition worsens, it may be best to obtain legal arrangements to transfer financial authority to a responsible party such as a spouse, adult child or another trusted family member. They may be initially opposed, but their financial security is the main priority.
Knowing When to Ask for Help
After helping your loved one handle their finances, consider putting aside money for in-home memory care. Having dementia caregivers can be a helpful additional resource in your caregiving journey. Experts who understand the nuances of dementia can work with your loved one to create an environment suitable for their specific needs. They can also help alleviate the emotional impact of dementia on family members.
Lead Your Family into Financial Security
A dementia diagnosis is a big change for the entire family and one that can come with financial challenges. Having the right resources for managing dementia and money is essential in preparing your family for this adjustment. FirstLight Home Care provides resources regarding financial support for caregivers who are just starting their caregiving journey. If you are seeking additional hands-on support, contact a FirstLight location near you to learn more about the cost of dementia care and how we can help your loved one feel seen and supported in their journey with dementia.