Let’s Talk Money: The Hidden Financial Impact of Alzheimer’s
Alzheimer’s is often viewed as a memory condition-but its consequences go far beyond that. One of the most overlooked effects is the financial toll it takes on the person living with the disease, as well as those around them.
Before a diagnosis is even made, many individuals with Alzheimer’s begin showing signs of financial vulnerability: missed payments, uncharacteristic spending, risky investments, and unfortunately, becoming victims of scams.
A 2024 study by the Federal Reserve Bank of New York and Georgetown University revealed a troubling pattern:
Credit scores began to drop five years before diagnosis
People were 21% more likely to fall behind on credit cards
And 11% more likely to default on mortgage payments two years before their diagnosis
This shows that financial missteps are often one of the earliest indicators of cognitive decline.
The Three Stages of Financial Impact
🟡 Early Stage:
Difficulty keeping track of bills or sticking to a budget
Mistakes in basic calculations
Taking longer to complete simple financial tasks
Odd or impulsive purchases
🟠 Middle Stage:
Trouble reading bank statements
Missing important payments
Easily deceived by scams or marketing tactics
🔴 Later Stage:
Full reliance on others to manage money
Rising care costs
Potential need for long-term residential care
What Can You Do?
The best defence is early action. Here are practical steps to support someone facing cognitive decline:
Start conversations early- don’t wait for a crisis to talk about money
Use empathy, not authority- discuss plans as partners, not from a place of control
Collaborate instead of criticise- understand that mistakes may be signs, not carelessness
Set up automatic payments- reduce missed bills with tech-based safeguards
Budget together- keep them involved in day-to-day decisions as long as possible
Get a specialist financial adviser- ideally someone with dementia planning experience
Plan for Power of Attorney- involve them in decisions while they’re still able
Why It Matters
Planning for Alzheimer’s isn't just about medical care, it's about preserving dignity, independence, and stability. With the right steps, families can protect assets, reduce stress, and make the caregiving journey a little smoother.
Need more support?
Download our free guide to financial planning and caregiving at allaboutalzheimers.ai
