When the numbers stop adding up, it could be more than forgetfulness.
Most people don’t associate financial habits with cognitive decline, but the link is stronger than you’d think. Subtle changes in how your parents handle money—missed due dates, unusual purchases, or trouble balancing a checkbook—can be early red flags of something much deeper than simple absentmindedness. For many older adults, especially boomers, these money missteps are among the first outward signs of dementia beginning to affect everyday life.
The tricky part is knowing when to step in. No one wants to accuse their parent of slipping, especially when it might just be stress or aging. But when these mistakes pile up or come out of nowhere, they deserve a closer look. Money issues can snowball fast, and if dementia is at play, waiting too long can lead to financial disaster. If your mom or dad is suddenly struggling in ways that seem out of character, these money mistakes might not just be mistakes—they might be a warning. Here are 11 financial behaviors that could be early signs of cognitive decline in your boomer parents.
1. Forgetting to pay routine bills or making duplicate payments.
Missing a utility bill once might be no big deal, but when it becomes a pattern, there’s reason to pause. If your parent has always been on top of due dates but now forgets to pay—or pays the same bill twice—it could signal memory issues, according to the authors at the National Institute on Aging.
These small mistakes are easy to dismiss as distractions, but they often show the early breakdown of organizational habits. Watch for unopened mail, piles of bills, or confusion over what’s been paid. These signs aren’t just about money—they reflect how their brain is managing day-to-day information, and that’s what makes them concerning.
2. Suddenly giving large sums of money to unfamiliar people.
Scammers know how to target vulnerable seniors, but it’s not just about external threats. If your parent starts giving money to new “friends,” questionable charities, or strangers online, it could point to impaired judgment, as reported by Valencia Higuera at Healthline.
People in the early stages of dementia often become more trusting or less skeptical. They might fall for emotional appeals or not realize the red flags they would have spotted in the past. Sudden generosity to unknown recipients isn’t just odd—it can be a sign that their decision-making process isn’t firing the way it used to.
3. Losing track of everyday spending or forgetting where money went.
Everyone misplaces a receipt now and then, but if your parent can’t account for regular purchases or keeps asking where all their money went, take note. This isn’t just forgetfulness—it could be a sign of disorganized thinking or short-term memory trouble.
They may insist they didn’t spend much, even after withdrawing hundreds in cash. Or they might get defensive when asked about bank balances. If this becomes a pattern, it’s worth exploring gently. Their financial habits might be shifting without them realizing it, as stated by Sarah Boden at NPR.
4. Failing to understand or recall basic banking transactions.
If your parent suddenly struggles to read a bank statement, balance a checkbook, or remember how to deposit a check, it could indicate cognitive decline. These are tasks they’ve probably done for decades, and losing the ability to perform them is concerning.
They may start asking the same questions over and over, or feel overwhelmed by simple numbers. It’s not about financial literacy—it’s about cognitive function. Watch how they respond when walking through familiar financial routines. Confusion where there was once confidence can be an early clue.
5. Making unusually risky financial decisions.
Boomers with a long history of cautious money management don’t typically wake up one day and start chasing crypto or investing thousands in penny stocks. A sudden shift in financial behavior—especially toward risky decisions—can indicate poor impulse control, a common symptom in the early stages of dementia.
They may start ignoring financial advice, cancel insurance policies, or make decisions without thinking through the consequences. These choices might seem spontaneous or reckless, but they’re often rooted in changes happening beneath the surface.
6. Letting mail, statements, and paperwork pile up unopened.
A cluttered table stacked with unopened envelopes might not seem like a big deal, but it could signal that your parent is overwhelmed or mentally checking out. If this was never their pattern before, it deserves attention.
Neglected paperwork can lead to missed bills, lapsed policies, and confusion over account balances. It’s also a sign that their executive functioning—how the brain manages tasks and planning—might be slipping. If you start seeing important documents tossed aside, don’t ignore it.
7. Getting easily confused when shopping or using credit cards.
Simple shopping routines can become confusing for someone in the early stages of cognitive decline. They may fumble with their card at the register, forget their PIN, or double-purchase items because they don’t remember buying them.
What once felt automatic now takes noticeable effort. You might hear about them leaving a store empty-handed because they forgot what they came for or panicking at checkout because they forgot how to pay. These small incidents often point to something deeper than old age.
8. Accumulating late fees, overdrafts, or bounced checks.
If your parent suddenly starts racking up bank fees, it’s time to investigate. A pattern of overdrafts, bounced checks, or late payments is rarely about a lack of money—it’s usually about a loss of control over the details.
These mistakes suggest they’re struggling to track their account balances or schedule payments effectively. Left unchecked, these problems can quickly spiral into bigger issues, especially if they’re too embarrassed or confused to ask for help.
9. Becoming secretive or defensive about financial matters.
If a parent who once welcomed help suddenly becomes guarded or overly defensive about money, something may be off. They might insist everything’s fine, even as the evidence says otherwise.
This shift can come from embarrassment, denial, or a deeper cognitive issue that makes them unaware of their missteps. While it’s natural to want privacy around finances, excessive secrecy can indicate confusion or fear they don’t know how to explain.
10. Repeating the same financial questions or concerns.
Repetition is one of the clearest signs of memory trouble. If your parent asks about the same bank transaction, bill, or budget over and over, it’s likely more than forgetfulness.
They may not remember asking before, or they might be stuck in a loop of anxiety because their mind can’t hold on to the answer. Repetitive questions about money often signal that the brain’s short-term memory system isn’t functioning the way it used to.
11. Falling behind on taxes or making filing errors.
Taxes are complicated for anyone, but if your parent was once meticulous about filing and suddenly misses deadlines or makes strange mistakes, take a closer look. Misfiled paperwork, missed deductions, or failure to file at all are early signs that something might be wrong.
Tax confusion goes beyond numbers—it reflects a deeper struggle with planning, organization, and following complex steps. If they’re making errors they’ve never made before or suddenly relying on others to handle the entire process, don’t ignore it. It might be time to get more involved.
When money management skills begin to unravel, it’s often one of the first clues that something bigger is going on. Watching out for these signs doesn’t mean assuming the worst—it means staying alert and stepping in early enough to make a difference.