If your parent or relative is living with dementia, one of the areas that can become particularly challenging is money.
Dementia can affect judgement, problem-solving, and the ability to recognise when something doesn’t look right. This can make it harder to keep track of bills, spot scams, or make sound financial decisions. For example, your parent might forget they’ve already paid something, fall for a persuasive cold caller, or find reading a bank statement increasingly difficult.
This article provides guidance and information on managing money more easily and safeguarding finances after a dementia diagnosis.
Disclaimer: This article provides general guidance and information for families and carers of people diagnosed with dementia. It is not a substitute for professional advice from a lawyer, financial advisor, or other qualified professional.
Start early and involve them
It helps to put plans in place soon after a dementia diagnosis. Acting early – before symptoms progress further – means your parent can still take part in decisions, making the process feel collaborative rather than imposed.
Introducing safeguards gradually can help protect their finances while respecting independence and preventing harder conversations later on.
Simplify banking and finances
Easier systems can reduce the care burden and make day-to-day management more straightforward for everyone over the longer term.
- Reduce the number of accounts and cards: fewer accounts mean less confusion and easier monitoring. Using one account for regular payments reduces complexity.
- Switch bills to direct debit: having direct debits for all essential bills (electricity, council tax, mortgage/rent, insurance) helps prevent missed payments.
- Set up a password manager: storing log-ins securely in one place means they never have to remember them and can make it easier to manage multiple accounts.
If no one in the family is able to help with this, and your parent needs support, you could consider bringing in a professional organiser. The UK’s association for professional declutters and organisers – APDO – is a helpful resource for finding one in their local area.
Professional organisers often work in sessions measured in hours. A “half-day” session (often around 3–4 hours) is a typical offering – which might be enough to get basic systems in place, depending on how complicated their accounts are.
Protect against scams and overspending
There are several ways you can help your parent spend safely and reduce exposure to fraudsters, without removing their independence.
- Set up a prepaid card: As well as their main bank account, some families find prepaid cards, such as the Sibstar debit card, useful for everyday spending. Families can load money onto the card, set daily spending limits, and monitor transactions via an app.
- Limit cards carried: Carrying only essential cards for everyday spending in their wallet can reduce confusion, limit overspending and protect against financial loss if their wallet is lost or stolen.
- Manage cash carefully: Cash can feel reassuring for many people living with dementia. While there are risks with keeping and handling cash, removing it completely may cause distress or arguments. Carrying only small amounts in their wallet can help reduce risk while still providing reassurance. Families may also choose to only make withdrawals in a safe environment, such as inside a bank or with a trusted person present, to help minimise the chance of mistakes or fraud.
- Block unwanted calls and mail: Registering with the Telephone Preference Service and Mailing Preference Service can help reduce unwanted calls and post. Call-blocking devices such as TrueCall or setting up BT Call Protect may also help prevent unwanted calls.
- Set safeguards with their bank: Banks can put certain safeguards in place if an account holder is diagnosed with dementia.Many offer “vulnerable customer” programmes with:
- Alerts for unusual spending or scams
- Cash withdrawal or online transaction limits
- Access to a trusted contact to discuss transactions if concerns arise
- Options for joint accounts with restricted access or third-party mandates
- Be scam aware: You can receive direct information about scams and fraud in their area by signing up for Action Fraud alerts. For unsolicited calls from anyone asking for payment or personal details, some families encourage memorising and repeating a simple sentence, such as ‘My son/daughter manages all my finances’. Keeping the sentence short and easy to remember is key, and placing a reminder near the phone or computer can help. Learn more about scams and scam prevention here.
Set up legal and longer-term safeguards
As dementia progresses, legal protections and clear organisation become increasingly important to help your parent stay safe and to make it easier for others to step in when needed.
- Lasting Power of Attorney (LPA): LPAs are legal documents that allow a trusted person to manage your parent’s finances or make health and welfare decisions on their behalf. Without a Property & Financial Affairs LPA – or its older version, an Enduring Power of Attorney – no one else can legally handle their financial affairs or speak to banks on their behalf. You can learn more about LPAs here.
- Documenting finances: Keeping a simple spreadsheet or list of accounts, regular expenses, pensions, and investments can make it easier to track finances, spot errors, and ensure bills are paid on time.
- Organising key documents: Organising important documents – such as wills, LPAs, pension details, and benefit entitlements – and keeping them together in one place can make it easier for trusted people to locate them quickly when needed.
Seek professional financial advice
Specialist advice can assist with planning for care costs, managing assets, and making informed decisions about long-term financial matters.
If you decide to seek professional advice, SOLLA can be a useful resource to locate qualified financial advisers and solicitors experienced in later-life planning.
In summary
Supporting a parent through dementia is never easy. Families often worry about money being lost, stolen, or mismanaged, but taking control away too soon can also cause distress and arguments.
Putting safeguards in place – from prepaid cards to LPAs – can ease those worries while protecting your parent’s finances and independence.
The aim is to make managing money feel safe and straightforward, with less stress and confusion for everyone, while respecting your parent’s autonomy and supporting them to live well.
Common questions
- What if my parent resists changes to managing their finances?
Introducing changes gradually and framing them as support for independence can make them easier to accept. Whenever possible, providing options rather than directives can reduce feelings of loss of control.
- Can my parent make an LPA if they’ve already been diagnosed with dementia?
Many people in the early stages of dementia are still perfectly capable of making an LPA.
What matters is whether they still have mental capacity to understand what an LPA is, what powers they are giving to someone, and the implications of that decision.
However, time is crucial. As the condition progresses, capacity may decline, and if it’s lost, it will no longer be possible to make an LPA.
