When Memory and Money Intersect: Signs of Dementia

November 12, 2025

Discovering that a loved one may be experiencing dementia is never easy. It’s an emotional realization that often comes with uncertainty about what lies ahead. Early detection can make a big difference. One of the first clues is not medical, but financial.

Studies from Johns Hopkins and the Federal Reserve Bank of New York found something interesting. People who develop dementia often change how they handle their money. This change in financial behavior can happen years before they receive a diagnosis. Missed bill payments, unusual spending, or declining credit scores can all be early red flags that something deeper is happening.

By understanding the connection between financial patterns and cognitive decline, families can take steps to protect both their loved ones and their finances.

How Dementia Can Impact Finances

According to research, individuals who go on to develop dementia may begin missing routine bill payments as early as six years before diagnosis. Those missed payments often lead to falling credit scores—sometimes dipping below 620—which can make it harder to borrow money or access favorable financial terms.

What makes this especially important is that no other major health condition shows this same pattern. Dementia appears uniquely tied to long-term changes in financial decision-making and management.

10 Early Financial Warning Signs to Watch For

1. Missed or Late Bill Payments

Repeatedly forgetting to pay utilities, mortgage, or credit card bills can signal cognitive changes. Sometimes, a person may not even recognize a bill’s importance or understand the consequences of missing it.

2. Declining Credit Scores

If your loved one’s credit score suddenly drops despite a lifetime of responsible habits, it may be more than a financial issue. Studies show credit deterioration often begins years before a dementia diagnosis.

3. Credit Card or Loan Denials

A history of missed payments can lead to rejected credit applications or reduced credit limits—often one of the first concrete consequences of cognitive decline.

4. Unusual or Excessive Purchases

Large or repetitive online orders, extravagant purchases, or multiple subscriptions may indicate impaired decision-making. Reviewing account statements regularly can help spot these changes early.

5. Missing or Unaccounted-for Funds

If money seems to “disappear” from accounts, or your loved one insists cash is missing, it may reflect confusion about withdrawals or difficulty balancing a checkbook.

6. Abandoning Budgeting Habits

Someone who used to track spending closely may suddenly stop. Losing the ability or motivation to organize finances is a frequent early symptom.

7. Repeated Questions About Routine Tasks

Calling the bank multiple times to ask the same question—or forgetting a recent transaction—can reveal short-term memory problems that go beyond normal aging.

8. Difficulty With Simple Math or Forms

Struggling to calculate a restaurant tip or fill out a financial document may point to cognitive decline affecting problem-solving and attention to detail.

9. Sudden Changes in Financial Behavior

A once-cautious investor suddenly takes big risks—or a confident decision-maker loses all interest in managing investments. Dramatic shifts in risk tolerance or priorities warrant attention.

10. Falling Victim to Scams or Fraud

Sadly, seniors with memory issues are frequent targets of financial scams. Watch for unfamiliar charges, unexpected withdrawals, or suspicious phone and email communications.

How to Help Protect Loved Ones Financially

If you suspect dementia may be affecting a family member’s financial judgment, early action is crucial. Consider:

●     Establishing joint account oversight or setting up alerts for large or unusual transactions.

●     Reviewing and updating estate documents, including powers of attorney and healthcare directives.

●     Consulting a financial advisor familiar with elder care and cognitive decline.

●     Coordinating with a healthcare provider to support diagnosis and care planning.

The goal isn’t to take away independence, but to create safeguards that protect dignity, security, and long-term well-being.

Planning With Compassion and Care

Money tells a story—and sometimes, it’s the first sign that something isn’t right. Recognizing these financial changes early can help families respond with understanding rather than crisis management. With the right planning, oversight, and professional support, you can protect your loved one’s financial future while ensuring they continue to live with comfort and respect.

Sources:

https://www.thepennyhoarder.com/retirement/dementia-affecting-finances/

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.