Many of us expect memory slips to show up as repeated questions or forgotten names. Classic “senior moments.”
But research suggests something else may change first: financial behavior.
Recent studies indicate that irregular bill payment, credit activity, banking behavior, and overall money management issues can appear years before a formal dementia diagnosis.
That doesn’t mean every late payment signals cognitive decline. Missed bills happen to people of all ages. What matters is a pattern, especially when it’s out of character.
Missed Payments Years Before Diagnosis
A 2025 study summarized by the National Institute on Aging analyzed Medicare data linked with credit records for nearly 2.5 million older adults over 17 years.
Researchers found:
- Missed credit card payments often began about five years before diagnosis.
- Late mortgage payments increased around three years before diagnosis.
- In the year leading up to diagnosis, individuals were over 34% more likely to miss credit card payments and 17% more likely to miss mortgage payments compared to earlier years.
Credit scores also often did not rebound after diagnosis.
Researchers noted that financial difficulties frequently appeared before medical costs or long-term care expenses became significant.
In other words, financial changes may show up before families realize something more serious is developing.
(Source: National Institute on Aging, February 18, 2025)
Banking Behavior and Loss of Financial Capacity
Another 2025 study published in JAMA Network Open examined banking data from more than 16,000 individuals whose Power of Attorney registrations indicated a loss of financial capacity.
In the 10 years before that registration, researchers observed that these were the changes most likely to indicate loss of financial capacity:
- Reduced spending on everyday activities like travel, hobbies, and clothing
- Increased time spent at home
- Reduced online banking activity
- More frequent PIN reset requests
- Increased reports of lost or stolen cards
- Slight increases in reported fraud
- Increased charitable spending
In this study we’re looking at financial behavior. The takeaway is not that banking data
diagnoses dementia. It’s that meaningful changes in financial habits can show up gradually, often well before families feel certain something is wrong. And that matters because these are the types of behaviors that families can keep an eye out for. And if and when they show up, to be proactive. Because proactive legal planning works best before a crisis forces decisions.
(JAMA Network Open, June 13, 2025)
What This Means for Families
Again, none of these studies mean that a single late payment equals dementia. We’re looking for patterns. Consistent changes in how someone manages money- especially if they’ve always been meticulous with their finances- may signal that additional support is needed.
You’re looking out for:
- Repeated late or missed payments
- Unopened mail or duplicate subscriptions
- Increased confusion about balances
- Unusual charitable giving
- Difficulty logging into accounts
- Greater vulnerability to scams
Planning With Purpose
What’s just as important as what to do is when to do it. The most effective time to put safeguards in place is before a diagnosis limits options.
Proactive planning may include:
- Financial Power of Attorney
- Health Care Proxy and Advance Directive
- HIPAA authorizations
- Account alerts and oversight systems
- Simplified financial structures
- Coordinated long-term care planning
Planning early preserves autonomy. It allows your loved one to choose who will help and how.
Waiting limits options.
If you’re noticing consistent changes in financial patterns- even subtle ones- it may be time to start that conversation.
Learn More About Planning for Aging Parents
Changes in spending or financial behavior can sometimes be one of the earliest signs that something isn’t right. Recognizing these patterns early can help families step in before larger problems develop.
If you would like a resource you can share with family members, download our guide:
Protecting Aging Parents from Financial Scams
Download the guide
Educational Workshops for Businesses and Organizations
Ayres Presser Elder Law provides educational workshops for businesses, employers, and community organizations that want to help families better understand financial risks, elder care planning, and how to prepare for future needs.
Learn more about hosting a workshop
If you have questions about planning options for your family, contact our office to learn more or call 814-262-2123 to schedule a consultation.