FINANCIAL PREDICTORS OF COGNITIVE IMPAIRMENT: CAN MONEY MANAGEMENT HELP TRACK DEMENTIA?

Abstract

One of the earliest signs of cognitive decline and dementia is impaired financial capacity, which can manifest as difficulties managing money and paying bills or making erratic and uncharacteristically risky financial decisions. However, the extent that difficulties managing money are predictive of subsequent cogntive decline has not been well-characterized. Retrospective analysis of survey data collected by the U.S. Health and Retirement Study (N = 22,002), a nationally representitive survey of older adults completing at least 2 biennial interviews between 1998 - 2012 including questions about money management and a Telephone Interview for Cognitive Status. Multivariable regression was used to assess the relationship between new difficulties managing money and subsequent transitions to cognitive impairment non-dementia and dementia. New difficulties managing money in the past 2 years are associated with a 7 percentage point (80%; p < 0. 01) increase in the probability of developing cognitive impairment, and difficulties 2 - 4 years prior are associated with a 1. 4 percentage point (16%; p < 0. 01) increase. New difficulties managing money are predictive of cognitive decline up to four years in the future. Monitoring financial activities may lead to earlier dementia screening and diagnoses.