Researchers from Maryland and Michigan recently published a topic It shows that within the six years before their diagnosis, individuals with Alzheimer's disease or a related disorder were more more likely to miss a bill payment than older adults without such a diagnosis (7.7% vs. 7.3%), they usually were also more more likely to develop subprime. Credit rating (7.9% vs. 6.9%). As the authors acknowledge, there have been quite a lot of problems with the study, including the unequal matching of the groups' mean age (79.4 vs. 74.0 years), which can mean that the outcomes actually reflect age moderately than Alzheimer's disease. were resulting from The authors attempted to regulate for this difference with their statistical analyses, but sometimes this didn't fully account for any such inequality.
The tip of the iceberg
However, the most important problem with this study is that it underestimates the actual financial hardships faced by individuals with Alzheimer's disease. After reading this text, you may think, “Well, these differences are only 1% or less, so it's not a big deal.” But this text doesn't address the main financial problems individuals with Alzheimer's disease face: poor decision-making and falling victim to financial scams.
Financial scams
How again and again per week — or a day — does your phone ring with someone offering you a brand new bank card, automobile loan, or investment deal? How often do you get a call from someone claiming to be out of your bank card company or the Social Security office?
Fraud is a large problem, with one in every 18 seriously impaired older adults within the United States To be a victim of one. But individuals with Alzheimer's dementia and people within the pre-dementia stage with mild cognitive impairment They are even more sensitive. In fact, research in healthy older adults shows that susceptibility to scams May be related to shrinkage in memory-related structures in the brain. — a few of the same structures that shrink in Alzheimer's.
Poor judgment and decision making.
People with Alzheimer's disease grow to be vulnerable to scams because their judgment and decision-making are impaired. Making financial decisions requires the coordinated work of many brain systems to retrieve prior information from memory, add latest information to memory, retain that information, and analyze it. go People with Alzheimer's disease have problems with the brain. All these functions.
It is that this difficulty in decision-making and decision-making that results in the subsequent two biggest financial problems in Alzheimer's disease. The first is donating an excessive amount of money to legitimate causes, and the second is making poor financial investments.
Legitimate reasons
You could have recently been called by your local police or firefighters' pension fund, along with calls from organizations resembling Save the Children. Perhaps you'd prefer to donate to a few of these causes. But did you already donate to this organization last month? How much money must you pay? How often must you give?
It might be difficult for anyone to maintain track of all these worthy causes, and donate the suitable amount inside their budget. People with poor memory and judgment have loads of trouble knowing which charities they've given to recently—and once they must stop giving money in order that they will pay for that month's food, rent, and money. Enough for the warmth!
Financial investment
Even probably the most intelligent individuals with excellent memories sometimes make poor investment decisions that result in significant financial losses. Given their complexity, it shouldn't be surprising that many individuals who eventually develop memory impairment have made poor investment decisions through the years. Before their diagnosis. Unfortunately, I actually have seen many families' life savings go to waste this fashion.
Protect yourself and your family members.
Fortunately, there are some easy things you may do to guard yourself and your family members from these kinds of financial problems.
- Avoid scams by not answering the phone unless it's someone . Even higher, you may set your smartphone to silence unknown callers.
- Decide upfront which legitimate charities you prefer to to donate to this yr. Write them a check and don't reply to another requests.
- Make investment decisions with a trusted member of the family, friend, or financial advisor. Financial investment decisions can at all times use an additional pair of eyes.
- If you've done all of this and still have problems, try organising a separate checking account with only a small sum of money and a bank card with a lower spending limit.
These measures will allow one to live a every day life without buying expensive items or paying large sums of cash.