Managing finances while living with dementia

As dementia diagnoses continue to rise across Nova Scotia, more families are finding themselves navigating complex medical and financial planning issues.

From medications to care provision, managing finances, taxes and legal matters, a dementia diagnosis can be overwhelming.

Over time, dementia can affect memory, judgement, and the ability to manage everyday tasks. For many people, this includes gradually losing the ability to handle money-related matters, such as paying bills, monitoring accounts, or filing taxes. Planning ahead allows people with dementia to clearly express their wishes for the future, creating financial stability and reducing stress for caregivers down the road.

An important tool in the financial journey is a power of attorney. In Nova Scotia, a power of attorney is a legal document that allows a trusted person to manage financial and legal matters on someone else’s behalf. A legal professional can help guide families through this process.

Creating or updating a will is also an important part of planning, as it ensures assets are distributed according to the person’s wishes.

Communication also plays a key role. It can be helpful to inform family members, close friends, or caregivers about financial plans and preferences. The person chosen to take on financial responsibilities should know where important documents are stored and understand account details, recurring bills, and financial obligations.

Having open conversations about long-term financial goals, personal values, and how money should be managed can provide clarity and reassurance for everyone involved. When these conversations happen early, families can focus more on care and quality of life rather than navigating financial matters.

Working directly with your bank can provide additional safeguards. Financial institutions may be able to suggest and implement practical tools such as automatic bill payments, direct deposit arrangements, and account alerts. Lowering credit card limits can reduce the risk of large or unauthorized purchases.

People living with dementia may also be at a higher risk of fraud, scams, or card theft. Reviewing accounts regularly and adding protective measures can help prevent problems. Banks can sometimes flag unusual transactions or add trusted contacts to accounts with the account holder’s permission.

Living with dementia brings many changes, but it does not mean losing control over your future. By discussing your wishes, organizing finances, and putting legal protections in place, individuals and families can help ensure financial affairs are managed according to values.

I’ll be hosting a Caregiver Education Series in Sydney River every Friday from April 10 to May 15. The education series is for family members and care partners of individuals recently diagnosed with dementia to learn about symptoms of dementia, coping strategies, future planning and available community resources.

Please call our Dementia Helpline at 1-800-611-6345 to register. For more information and resources to assist with your future planning, click here.