In a recent report released by the New York Federal Reserve, it has been discovered that dementia not only affects the emotional and physical well-being of families, but it also takes a toll on their financial stability. The study revealed that financial consequences, such as a decline in credit scores and an increase in late payments, often occur in the five years leading up to a diagnosis of Alzheimer's disease and related disorders (ADRD).

By analyzing 17 years of data from consumer credit agencies and Medicare databases, researchers identified a clear pattern of financial instability preceding the formal diagnosis of ADRD. Individuals in the early stages of dementia were found to accumulate greater debt, open new credit accounts, and utilize multiple types of credit. These findings suggest that financial difficulties may manifest themselves as one of the earliest signs of the disease, even before overt symptoms become widely apparent.

The implications of this report are particularly troubling as older adults with dementia are likely to face considerable costs associated with caregiving and other related expenses. Monica Moreno, senior director of care and support for the Alzheimer's Association in Chicago, emphasized that challenges in managing money or personal finances are common early indicators of dementia. Factors such as difficulty with problem-solving, poor judgment, and struggles with completing familiar tasks can adversely impact financial decision-making.

Furthermore, individuals living with dementia are more vulnerable to financial abuse, identity theft, fraud, and investment schemes. Moreno warns that failure to address these potential threats can put those with dementia at great financial risk. It is crucial for family members to identify these warning signs early on and intervene promptly.

To address these issues, the Alzheimer's Association shared key strategies for supporting individuals managing their finances. These include discussing with trusted family members or friends about assisting with bill payments or setting up automatic billing to avoid late payments. Creating a separate account with a predetermined amount of money for personal purchases and signing up for automatic notifications for bank account withdrawals or large credit card charges were also suggested.

The report emphasizes the importance of early diagnosis in order to implement financial safeguards. Family members are urged to share concerns and speak with healthcare professionals if they suspect a loved one may be exhibiting signs of dementia. Detecting and addressing financial challenges at the early stages of the disease offers the best opportunity to protect individuals and their assets.

As the financial impact of dementia becomes increasingly apparent, raising awareness about these warning signs and equipping families with necessary resources are crucial steps in managing the broader implications of this cognitive disorder.