The Financial Capacity of Individuals With Dementia: A Narrative Review

The prevalence of dementia is rising globally, with significant consequences for society. This increase not only places a substantial financial strain on caregivers and families but also adds a growing economic burden on societies and governments. In this context, improving the financial capacity of dementia patients is critical, as it can help mitigate the risk of financial exploitation and improve their quality of life. Financial competence is a complex and evolving concept, encompassing specific financial transaction behaviours and cognitive skills, such as mathematical ability and financial knowledge. Some recent studies have proposed a people-centred approach, emphasising that financial capacity should be understood through observation and aligned with individuals' personal values and life experiences. In this review, we outline the definition of financial capacity, especially in relation to dementia patients. Despite the importance of this area, tools specifically designed to measure financial capacity in dementia patients are still limited. The early decline of financial capacity is a common and notable trend among individuals with various types of dementia, underscoring its potential as an important marker for dementia diagnosis. For this reason, it is essential for clinicians to recognise the early signs of diminished financial ability, enabling them to offer timely guidance and support to patients and their families. The present review also provides insights from Japanese clinicians on managing patients who exhibit impaired financial capacity. In Japan, dementia prevalence is rising rapidly due to an aging population, making it critical to focus on research and practical solutions to address the financial challenges faced by these patients. Greater attention should be paid to developing strategies that safeguard the financial well-being of dementia patients, supporting them in managing their finances as independently as possible while protecting them from exploitation.