Detecting dementia in its earliest stages remains a challenge, as initial symptoms frequently manifest through memory issues. However, new research highlights a significant and often overlooked warning sign: changes in financial behavior that can appear years before diagnosis.
Experts from the Alzheimer’s Society emphasize that as dementia progresses, individuals often face difficulties managing money and financial responsibilities. Recent studies have identified specific behavioral shifts linked to the onset of dementia, sometimes detectable as early as five years prior to diagnosis.
A research team at the New York Federal Reserve analyzed credit reports alongside medical data, revealing that in the five years before a dementia diagnosis, individuals’ credit scores may decline. This drop often correlates with patterns such as late bill payments, final warnings, service disconnections, and unusual spending habits. According to the researchers, “The harmful financial effects of undiagnosed memory disorders exacerbate the already substantial financial pressure households face upon diagnosis.” They further note that early-stage Alzheimer’s and related disorders can influence new account openings, debt accumulation, credit usage, and credit mix.
READ MORE: Winning EuroMillions Numbers Tonight: Full National Lottery Results with Thunderball on Tuesday, November 18, 2025
READ MORE: The Gloucestershire Towns Most Affected by Upcoming Snowfall
Published findings in JAMA Internal Medicine found that financial difficulties could be recognized up to two and a half years before diagnosis, with bill payment defaults sometimes beginning as early as six years prior compared to those without dementia. Additional research from JAMA Network Open reports signs emerging up to ten years before an individual relinquishes control over their finances due to diminished financial capacity. This loss includes behaviors such as increased time spent at home, reduced social activities, and heightened financial vulnerability.
While these financial problems do not definitively confirm dementia, they can serve as important indicators. Victoria Lyons, an Admiral Nurse at Dementia UK, explains, “Problems with managing money can be one of the earlier signs or behavioral changes associated with dementia.” She highlights that dementia impairs the brain’s ability to process information, make decisions, and plan tasks—key functions involved in financial management.
Families might observe individuals who historically managed their finances well suddenly struggling with bills, overspending, or making unusual transactions. Lyons advises noting such changes carefully, as they could stem from various causes.
Alzheimer’s UK outlines five financial domains that may reveal early symptoms and provides guidance for ongoing support. Struggling to manage money does not necessarily mean handing full control to others right away. With appropriate assistance, many can continue managing finances longer. For example, replacing PIN-based cards with ‘chip and signature’ cards can reduce memory-related difficulties. Setting up direct debits can also alleviate the burden of remembering payments.
Often, individuals with dementia can handle routine expenses like shopping but face challenges with more complex financial decisions, such as switching providers or managing investments. Caregivers are encouraged to adopt the least intrusive measures, such as registering power of attorney to assist with complex tasks while allowing the person to manage daily finances independently.
As dementia progresses, caregivers may notice increasing challenges in financial management, like failure to understand bills, overpayment, or unaccounted funds. In such cases, monitoring financial activity, discussing management strategies with the person affected, or stepping in as an attorney can help maintain dignity and autonomy while ensuring financial safety.
Recognizing and addressing financial difficulties early offers a valuable opportunity to support those with dementia and reduce the stress that accompanies this condition.