Children may need to oversee old parents' money transactions later in life

A new study has revealed that children may need to oversee old parents' money transactions later in their life.

Daniel Marson from the University of Alabama at Birmingham said that financial capacity has emerged as a key activity of daily living in understanding functional impairment and decline in patients with mild cognitive impairment (MCI) and dementia.

Marson added that the capacity to manage one's own financial affairs is critical to success in independent living. Impairments in financial skills and judgment are often the first functional changes demonstrated by patients with incipient dementia and breakdowns in financial management skills can be devastating.

Marson noted five clinical warning signs of financial decline that should represent changes from the older person's prior baseline financial skills that family members and caregivers of elderly persons should recognize.

The sign of Memory lapses, such as forgetting to pay bills or taxes, or paying bills twice, oor organization of financial information flow, Math mistakes in everyday life, such as figuring out a tip, confusion, such as an erosion in the ability to comprehend basic financial concepts and impaired financial judgment, particularly a new interest in get-rich-quick schemes.

A classic sign is that the person would not have considered the scheme five years ago and is now listening and interested. Another sign is unrealistic anxiety about personal finances.

In response to these changes, Marson suggests that caregivers can oversee an older person's checking transactions, contact the bank to detect irregularities such as bills' being paid twice, or become co-signers on a checking account so that joint signature is required for checks above a certain amount. Online banking and bill-payment services are additional options for families.