Small financial slip-ups might be pointing to something bigger.
Everyone forgets a bill now and then or makes an impulse purchase they regret. But when financial mistakes become more frequent—or out of character—it might be a sign of something deeper. One of the earliest indicators of dementia isn’t just memory loss, but changes in financial habits. Subtle shifts, like struggling with simple calculations or forgetting where money went, can be easy to dismiss at first. But over time, these warning signs can lead to financial trouble and greater cognitive decline.
If you or someone you love has been making these money missteps, it could be worth paying closer attention.
1. Bills are being paid late—or not at all.
Forgetting to pay a bill once in a while isn’t unusual, but consistently missing payments is a different story. If someone who was always on top of their finances starts getting late notices, it might not just be forgetfulness—it could be a sign of declining cognitive function. Dementia can make it harder to track due dates, prioritize expenses, or even recognize the importance of keeping bills up to date, as reported by AARP.
What starts as a few missed payments can quickly snowball into bigger financial problems. Unpaid bills can lead to service disruptions, fees, and even damaged credit. If reminders and automatic payments aren’t fixing the issue, it may be time to take a closer look at the root cause.
2. Unexplained cash withdrawals are becoming more frequent.
Frequent trips to the ATM or large cash withdrawals without a clear reason can be an early sign of cognitive decline. Someone in the early stages of dementia may take out money multiple times without remembering they’ve already done so, according to Sarah Bodin of NPR. They may also struggle to track how much they’ve spent, leading to confusion about missing funds.
This behavior can make them vulnerable to financial exploitation or even self-inflicted financial distress. If bank statements show unusual cash withdrawals or spending patterns, it’s worth gently discussing where the money is going and whether they’re keeping track as well as they used to.
3. They’re falling for scams more easily than before.
Scammers prey on confusion, and dementia makes people especially vulnerable to fraud, as stated by Dr. Duke Han. If someone who was once financially savvy suddenly starts donating to suspicious charities, signing up for unnecessary subscriptions, or responding to phishing emails, it could be a red flag.
This isn’t just about being careless—dementia affects judgment and the ability to recognize warning signs. They may struggle to detect scams that would have been obvious before. If you notice an increase in sketchy financial decisions, it may be time to step in before real damage is done.
4. They can’t explain where their money is going.
A person in the early stages of dementia might withdraw money or make purchases and then forget what they spent it on. When asked about their spending, they may give vague or inconsistent answers, sometimes becoming defensive or frustrated.
While occasional forgetfulness happens to everyone, a pattern of lost or unaccounted-for funds is concerning. If receipts are piling up without explanation or the person seems increasingly confused about their financial situation, it could signal something more than just a busy mind.
5. They suddenly start overspending—or becoming unusually frugal.
Dementia can cause shifts in financial behavior that are out of character. Someone who used to be careful with money may start making reckless purchases, while a former big spender might suddenly hoard cash and refuse to spend anything at all. These drastic changes often stem from impaired judgment and difficulty processing financial consequences.
If they’re splurging on things they don’t need or, conversely, refusing to buy necessities despite having the means, it may be time to explore what’s behind the change. Financial habits don’t usually shift overnight without a reason.
6. Basic math is becoming a struggle.
Balancing a checkbook, calculating a tip, or splitting a bill should be routine tasks for most adults. But when these simple calculations start feeling overwhelming, it could be a cognitive red flag. Dementia affects problem-solving skills and short-term memory, making even basic math confusing.
This can lead to mistakes like miscalculating payments, overpaying for things, or struggling to count cash correctly. If they suddenly seem hesitant or anxious when handling numbers, it may be a sign their brain isn’t processing information as efficiently as it used to.
7. They keep forgetting their PINs or passwords.
Forgetting a password once in a while isn’t unusual, but struggling to remember account logins or constantly resetting PINs could be a sign of something deeper. Dementia affects memory retention, making it harder to recall information that was once second nature.
This can lead to frustration, locked accounts, or even security risks if they start writing down sensitive information in unsafe places. If someone who used to manage their accounts with ease is now repeatedly forgetting access details, it may be time to offer some help.
8. They’re making out-of-character financial decisions.
Big financial changes that don’t make sense—like suddenly cashing out investments, taking on unnecessary debt, or giving away large sums of money—can be an early sign of impaired judgment. Dementia affects decision-making, making people more impulsive or easily influenced.
If a normally cautious person starts making risky or erratic financial moves, don’t dismiss it as just a “new phase.” It may be a sign that their ability to evaluate long-term consequences is slipping.
9. They’ve stopped checking bank statements or tracking expenses.
Someone in the early stages of dementia may start avoiding financial management altogether. If they once reviewed bank statements regularly but now seem uninterested—or even irritated—when the topic comes up, it could be because they’re struggling to make sense of the numbers.
This avoidance can lead to overdrafts, unpaid bills, or unnoticed fraud. If they’re no longer keeping tabs on their money the way they used to, it’s worth asking why.
10. They get overwhelmed by routine financial tasks.
Simple tasks like paying a credit card bill, depositing a check, or reviewing a receipt may suddenly seem overwhelming. Dementia affects processing speed and organization, making previously routine financial tasks feel confusing or stressful.
If they’re frequently asking for help with things they once handled effortlessly, or seem anxious when dealing with financial matters, it may be a sign that something more than just forgetfulness is at play.
11. They’re missing paychecks or pension deposits.
People with dementia may forget to cash checks, misplace important documents, or fail to notice when automatic deposits don’t go through. This can lead to unnecessary financial stress, as missing income creates problems with paying bills and maintaining financial stability.
If deposits are being overlooked or left unclaimed, it could be a sign that managing money has become too complex for them to handle alone.
12. They refuse to acknowledge their financial mistakes.
One of the hardest things about dementia is that people often don’t realize they’re struggling. If someone gets defensive, angry, or dismissive when their financial mistakes are pointed out, it may be because they genuinely don’t see the problem.
Denying issues or shifting blame is common when cognitive decline begins. If they’re making mistakes but refuse to discuss them, it may be time to involve a financial professional or trusted family member to help manage their money before things spiral out of control.