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Warning Signs of Diminished Capacity

talessi@ariesfoundation.org

5 Signs To Watch For With Financial Capability

Most of us probably think we know what to look for when a loved one is showing the signs of diminished capacity. But have you ever studied the subtle signs that should serve as red flags for you? Now is the time to learn more. There are too many elderly out there who are among us to ignore the probability that some of them will be too impaired to handle their financial decisions safely.
  
Indicators of diminished capacity will not always be so obvious to you, particularly if you are interacting with a an aging loved one, especially in a situation where you m ight be dong most of the talking or directing the conversation. While you may be asking them some specific questions, whether they involve a real estate matter, a legal transaction or case or accounting matter, and you could miss the signs that the individual is beginning to develop cognitive problems. If you are asking things in such a way, like “Do you understand?” or "Does that make sense?"and they answer is “yes” that is not a way to test whether they really did understand or not. You will need to do more, and ask a little more in-depth, if any warning sign pops up when interacting with an aging loved one.

Cognitive problems could be developing even if the individual is able to answer most of your questions. You won’t spot cognitive decline unless you are looking for the subtle signs that tell you that they are not quite as sharp as you’d like. If you probe a bit more, you may find that the person lacks the judgment to do what you is being asked or needed of them to do. Or, they may not be able to appreciate the financial impact of a decision they are being asked to make. Things could go wrong if you do nothing or ignore some of these red flags.  

When a person is impaired, they can be easily manipulated. They may also fear being “found out” that their memory is as bad as it really is and they may be trying to hide the fact. A person left to their own devices in this situation could make dangerous choices or certainly become subject to financial abuse by others.  

What should you look for in terms of possible diminished financial capacity in your client?
Here are warning signs:
1. Short Term Memory Loss: Have they missed some appointments recently? Could they not recollect a recent conversation or phone call that you had with them?
2. Disorientation: this may be about time or place. Are they unsure about what day it is or where they live or are located?
3. Communication Problems: a lack of ability to state what they want to say or articulate a thought. Is the person unable to find the words?
5. Lack of Mental Flexibility: inability to plan: When a person becomes fixated on an idea and you can’t dissuade them with logic. When the person can’t look ahead at the consequences of what they are doing now. This is certainly an indicator of a potentially bigger problem.
6. Calculation Problems: they may say they know the math but can they do the math? If you go to lunch, do they have trouble with the calculating the tip or making change?

If you see any one of these signs, proceed with caution. You must explore the problem more deeply and not just dismiss it as “(so&so)’s getting old”. If your loved one is impaired, their diminished capacity, especially when dealing with finances could expose then to some very bad sitautions or consequences.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!
The ARIES Foundation for Financial Education, Inc. is a nonprofit dedicated to helping everyone have a better realtionship with their money. And dealing with a loved one who is showing some of the warnings signs is a very difficult relationship to be in, for them and sometimes for you. You can reach us info@ariesfoundation.org or visit our webiste to learn more www.ariesfoundation.org
By Thomas Alessi January 5, 2025
Have you ever noticed how New Year's resolutions seem to lose their sparkle by the second or third week of January? If so, you’re not alone. Statistics show that most people abandon their resolutions within a few weeks of setting them. But why does this happen? The reasons often lie in how we approach our goals and the mindset we carry into the new year. One of the biggest culprits is setting unrealistic goals. Many of us feel a surge of motivation on January 1st and decide to aim for major life changes all at once—like losing 30 pounds in a month or working out every single day without fail. While ambition is admirable, these types of goals are often unattainable in such a short period, leading to frustration and eventual burnout. Another common issue is the lack of a clear plan. Resolutions often start as vague statements like “I want to get fit” or “I’ll save money this year.” Without actionable steps or measurable milestones, it’s easy to lose track of progress or get overwhelmed by the enormity of the goal. Without structure, even the best intentions can falter. Motivation fades quickly after the excitement of the new year dies down. Motivation is often fueled by novelty, but real change requires discipline and consistency—two traits that are harder to maintain over time. By mid-January, the initial enthusiasm often gives way to old habits, especially if we don’t have systems in place to reinforce new ones. Social and environmental pressures also play a role. Life gets busy, and as the demands of work, school, or family creep back in after the holiday lull, resolutions take a backseat. Pair this with temptations like junk food or the comfort of skipping the gym, and it’s no surprise that many people give up. Finally, many people don’t account for setbacks. Whether it’s missing a workout, overspending on a shopping trip, or indulging in an unhealthy meal, one slip-up can feel like a failure. This "all-or-nothing" mindset often leads to abandoning the resolution entirely instead of adjusting the plan. ________________________________________ Strategies to Overcome Quitters Day Breaking the cycle of quitting isn’t just possible—it’s entirely within your reach with the right mindset and strategies. Let’s dive into how you can overcome the challenges of Quitters Day and stick to your resolutions long-term. 1. Set Realistic and Measurable Goals The key to success lies in creating goals that are specific, measurable, achievable, relevant, and time-bound (SMART). For example, instead of saying, “I’ll get fit this year,” try “I’ll exercise for 30 minutes three times a week.” By breaking big aspirations into smaller, manageable steps, you’re less likely to feel overwhelmed and more likely to stay on track. 2. Build Consistent Habits, Not Just Motivation Motivation is fleeting, but habits are sustainable. Focus on creating daily or weekly routines that make progress automatic. For instance, if you want to eat healthier, prep your meals in advance or stock your kitchen with nutritious options. Building habits takes time, but once established, they become second nature. 3. Accountability and Support Systems Having someone to hold you accountable can make all the difference. Share your goals with a trusted friend, family member, or even a coach. Better yet, join a community or group with similar objectives. Knowing that someone is rooting for you—or counting on you—can keep you motivated during tough moments. 4. Reframe Setbacks as Learning Opportunities Setbacks are inevitable, but they don’t have to derail your progress. Instead of viewing a missed workout or a bad day as failure, see it as a chance to learn. What triggered the setback? 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Habit trackers, fitness apps, and budgeting tools make it easier to monitor progress and stay accountable. Life happens, and sometimes your resolutions need to evolve. Check in with yourself weekly or monthly to assess progress. Are your goals still realistic? Do you need to adjust your timeline or strategy? Being flexible ensures that your resolutions remain relevant and achievable. ________________________________________ With these strategies, you can break free from the Quitters Day trap and turn your resolutions into lasting change. The key is to approach your goals with patience, self-compassion, and a focus on progress rather than perfection. Change doesn’t happen overnight, but with consistent effort, you’ll be surprised at what you can accomplish.
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