Subtle changes in your financial habits could provide the earliest warning signs of dementia, appearing up to five years before a formal medical diagnosis, according to groundbreaking new research.
The Financial Red Flags of Early Dementia
Experts from the Alzheimer's Society have long recognised that as dementia progresses, individuals often struggle with managing money and financial affairs. However, recent studies have pinpointed specific behavioural changes that can emerge much earlier than previously thought.
A team from the New York Federal Reserve conducted comprehensive research analysing both credit reporting data and medical records. Their findings revealed that in the five years preceding a dementia diagnosis, people consistently showed deteriorating credit scores accompanied by concerning financial patterns.
These financial warning signs include repeated late bill payments, receiving final warnings and cut-off notices from service providers, and making out-of-character spending decisions that deviate from their established financial behaviour.
Research Reveals Extended Timeline of Symptoms
In a study published in JAMA Internal Medicine, researchers identified that financial difficulties could be detected approximately two and a half years before diagnosis. The research demonstrated that individuals later diagnosed with dementia were significantly more likely to begin missing bill payments up to six years before their diagnosis compared to those who never developed the condition.
A separate investigation published in JAMA Network Open uncovered even earlier indicators, with symptoms appearing up to ten years before individuals transferred financial responsibility to others due to "loss of financial capacity." These early signs included people spending more time at home, reducing social activities, and showing increased financial vulnerability.
Expert Identifies Five Key Financial Warning Signs
Victoria Lyons, Admiral Nurse at Dementia UK, emphasises that while financial difficulties don't always indicate dementia, certain patterns warrant medical attention when accompanied by other symptoms.
"Problems with managing money can be one of the earlier signs or behavioural changes associated with dementia," Lyons told The Sun. "Dementia often affects the brain's ability to process information, make sound decisions and manage tasks that require planning — like handling money."
Lyons outlines five specific financial areas that could signal developing dementia:
Struggling with basic financial tasks: Finding it difficult to pay bills, understand bank statements or manage online accounts, or becoming unusually preoccupied with financial matters.
Unusual spending patterns: Purchasing unnecessary items contrary to past behaviour, or giving away money—sometimes substantial amounts—to charities, friends, or even strangers.
Repeated or missed payments: Forgetting to pay bills entirely or paying them multiple times. While occasional mistakes happen, consistent patterns should raise concerns.
Losing track of cash or cards: Regularly misplacing bank cards, forgetting PIN numbers, or withdrawing money without remembering the purpose.
Increased susceptibility to scams: Impaired judgement makes individuals more vulnerable to fraud, cold callers, and online scams.
The Alzheimer's Society notes that struggling with finances doesn't necessarily mean immediate loss of financial independence. With appropriate support and adaptations—such as switching to chip and signature cards instead of PIN-based transactions, or setting up direct debits for regular bills—many people can maintain control over their day-to-day finances for longer periods.
Victoria Lyons stresses the importance of professional assessment: "You can't know for certain if money problems are related to dementia without a full medical evaluation. If you notice concerning changes, document them carefully as they could stem from various causes."
