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Lichtenberg PA, Rorai V, Flores EV. A person-centered approach to financial capacity: early memory loss, financial management and decision-making. Aging Ment Health 2024; 28:1383-1389. [PMID: 38595051 PMCID: PMC11390324 DOI: 10.1080/13607863.2024.2338199] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Grants] [Track Full Text] [Journal Information] [Submit a Manuscript] [Subscribe] [Scholar Register] [Received: 10/26/2023] [Accepted: 03/22/2024] [Indexed: 04/11/2024]
Abstract
OBJECTIVES Previous research has noted that a person-centered approach to financial capacity assessment is feasible. This study of personal finance included a review of 12 months of checking account statements followed by research interviews to investigate income, spending, financial literacy, and financial decision-making. The objective of the study was to determine the convergent validity of excess spending to contextual aspects of financial decision-making, financial literacy, and early memory loss. METHOD Participants were 114 adults over the age of 60 who came primarily from two research registries; the Healthier Black Elders registry and the Michigan Alzheimer's Disease Research Center registry. After sharing their checking statements participants completed two telephone interviews. Bivariate and multivariate analyses were used to compare those with no memory loss to the memory loss group, and to determine which measures were significantly related to excess spending. RESULTS There was a significant difference in excess spending between those with early memory loss and those with no memory loss. There was a significant difference in financial decision-making risk scores between the groups, as well as on a memory measure and a financial literacy measure. In a hierarchical regression analysis financial decision-making was the only measure significantly related to excess spending. CONCLUSION This study documented the convergent validity of person-centered measures of personal spending and financial decision-making with early memory loss. Early memory loss was related to both excess spending and contextual aspects of financial decision-making.
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Affiliation(s)
- Peter A Lichtenberg
- Institute of Gerontology and Distinguished Professor of Psychology, Wayne State University, Detroit, MI, USA
| | - Vanessa Rorai
- Institute of Gerontology, WALLET Study Coordinator, Detroit, MI, USA
| | - Emily V Flores
- Institute of Gerontology and Department of Psychology, Research Assistant, Detroit, MI, USA
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Maynard M, Flores EV, Paulson D, Lichtenberg PA, Ng BP. Perceived Financial Vulnerability, Wealth, and Wealth Change: The Health and Retirement Study. Clin Gerontol 2024:1-9. [PMID: 39165058 DOI: 10.1080/07317115.2024.2393761] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Journal Information] [Submit a Manuscript] [Subscribe] [Scholar Register] [Indexed: 08/22/2024]
Abstract
OBJECTIVES The 6-item Perceived Financial Vulnerability (PFV) scale assesses awareness and psychological vulnerability regarding finances. Prior findings using the Health and Retirement Study (HRS) identified significant associations of PFV with wealth, demographics, and health status. This study examines the relationship between wealth, changes in wealth, and PFV. METHODS Data from HRS respondents were analyzed (N = 1,056). Total assets at baseline (2016) and changes in total assets over two waves (2016 to 2018) were stratified into deciles and used as primary predictors of PFV in 2018. Multiple linear regression models examined the influence of demographics, wealth change (linearly and curvilinearly), and baseline wealth on PFV. RESULTS Wealth change and baseline wealth were associated with PFV. When controlled for baseline wealth, wealth loss linearly predicted increased PFV. CONCLUSIONS These findings support the utility of the PFV. Findings underscore the importance of integrating multifaceted financial and demographic information when conceptualizing subjective financial welfare. CLINICAL IMPLICATIONS Financial wellbeing is crucial in older clients and should be assessed over time. The 6-item PFV effectively evaluates contextual aspects of financial decision-making across socioeconomic statuses, making it valuable for clinical assessments.
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Affiliation(s)
- Madison Maynard
- Department of Psychology, University of Central Florida, Orlando, Florida, USA
| | - Emily V Flores
- Institute of Gerontology, Wayne State University, Detroit, Michigan, USA
- Department of Psychology, Wayne State University, Orlando, Florida, USA
| | - Daniel Paulson
- Department of Psychology, University of Central Florida, Orlando, Florida, USA
| | | | - Boon Peng Ng
- College of Nursing, Aging and Technology Cluster, University of Central Florida, Orlando, Florida, USA
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Lim AC, Weissberger GH, Axelrod J, Mosqueda L, Nguyen AL, Fenton L, Noriega D, Erdman CE, Han SD. Neuropsychological profile associated with financial exploitation vulnerability in older adults without dementia. Clin Neuropsychol 2024:1-17. [PMID: 39060956 DOI: 10.1080/13854046.2024.2378526] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Grants] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 12/20/2023] [Accepted: 07/06/2024] [Indexed: 07/28/2024]
Abstract
Objective: Reports of financial exploitation have steadily increased among older adults. Few studies have examined neuropsychological profiles for individuals vulnerable to financial exploitation, and existing studies have focused on susceptibility to scams, one specific type of financial exploitation. The current study therefore examines whether a general measure of financial exploitation vulnerability is associated with neuropsychological performance in a community sample. Methods: A sample (n = 116) of adults aged 50 or older without dementia completed a laboratory visit that measures physical and psychological functioning and a neuropsychological assessment, the Uniform Data Set-3 (UDS-3) and California Verbal Learning Test-II. Results: After covarying for demographics, current medical problems, financial literacy, and a global cognition screen, financial exploitation vulnerability was negatively associated with scores on the Multilingual Naming Test, Craft Story Recall and Delayed Recall, California Verbal Learning Test-II Delayed Recall and Recognition Discriminability, Phonemic Fluency, and Trails B. Financial exploitation vulnerability was not associated with performance on Digit Span, Semantic Fluency, Benson Complex Figure Recall, or Trails A. Conclusions: Among older adults without dementia, individuals at higher risk for financial exploitation demonstrated worse verbal memory, confrontation naming, phonemic fluency, and set-shifting. These tests are generally sensitive to Default Mode Network functioning and Alzheimer's Disease neuropathology. Longitudinal studies in more impaired samples are warranted to further corroborate and elucidate these relationships.
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Affiliation(s)
- Aaron C Lim
- Department of Psychology, USC Dornsife College of Letters, Los Angeles, CA, USA
| | - Gali H Weissberger
- Department of Social and Health Sciences, Bar-Ilan University, Ramat Gan, Israel
| | - Jenna Axelrod
- Department of Psychology, USC Dornsife College of Letters, Los Angeles, CA, USA
| | - Laura Mosqueda
- Department of Family Medicine, USC Keck School of Medicine, Alhambra, CA, USA
| | - Annie L Nguyen
- Herbert Wertheim School of Public Health & Human Longevity Science, University of California San Diego, CA, USA
| | - Laura Fenton
- Department of Psychology, USC Dornsife College of Letters, Los Angeles, CA, USA
| | - Daisy Noriega
- Department of Psychology, USC Dornsife College of Letters, Los Angeles, CA, USA
| | - Camille E Erdman
- Department of Psychology, USC Dornsife College of Letters, Los Angeles, CA, USA
| | - S Duke Han
- Department of Psychology, USC Dornsife College of Letters, Los Angeles, CA, USA
- Department of Family Medicine, USC Keck School of Medicine, Alhambra, CA, USA
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Lim AC, Mosqueda L, Nguyen AL, Mason TB, Weissberger GH, Fenton L, Lichtenberg P, Han SD. Interpersonal dysfunction predicts subsequent financial exploitation vulnerability in a sample of adults over 50: a prospective observational study. Aging Ment Health 2023; 27:983-991. [PMID: 35583043 PMCID: PMC9672139 DOI: 10.1080/13607863.2022.2076210] [Citation(s) in RCA: 1] [Impact Index Per Article: 1.0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Grants] [Track Full Text] [Journal Information] [Submit a Manuscript] [Subscribe] [Scholar Register] [Received: 01/04/2022] [Accepted: 04/28/2022] [Indexed: 11/01/2022]
Abstract
OBJECTIVES The goal of this study was to test whether interpersonal dysfunction, characterized by loneliness and/or dissatisfaction with relationships, is an imminent predictor of financial exploitation vulnerability (FEV) among adults age 50+ within a 6-month observation period. This study also tests whether FEV prospectively predicts interpersonal dysfunction. METHODS Twenty-six adults aged 50 or older completed a study involving baseline data collection and 13 follow-ups over 6 months. Linear mixed models were used for primary analyses. RESULTS After adjustment for demographic, psychological and cognitive covariates, there were between-person effects of FEV and interpersonal dysfunction across follow-ups, suggesting that those with generally higher interpersonal dysfunction compared to other participants also reported greater FEV (B(SE) = 1.09(.33), p = .003). There was a within-person effect (B(SE) = .08(.03), p = .007) of elevated interpersonal dysfunction predicting greater FEV two weeks later across all follow-ups. Within-person effect of FEV was not predictive of interpersonal dysfunction (B(SE) = .25(.15), p = .10). There was also a significant effect of age (B(SE) = -.06(.02), p = .007), such that older individuals had lower FEV throughout follow-ups. CONCLUSION Among adults age 50+, individuals with higher interpersonal dysfunction relative to others in the study reported greater FEV throughout the 6-month observation period. Increased loneliness and social dissatisfaction, relative to one's average level, predicts subsequent increases in FEV, and may be an imminent risk factor for exploitation.
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Affiliation(s)
- Aaron C Lim
- Department of Family Medicine, Keck School of Medicine of USC, Alhambra, CA, USA
| | - Laura Mosqueda
- Department of Family Medicine, Keck School of Medicine of USC, Alhambra, CA, USA
| | - Annie L Nguyen
- Department of Family Medicine, Keck School of Medicine of USC, Alhambra, CA, USA
| | - Tyler B Mason
- Department of Population and Public Health Sciences, Keck School of Medicine of USC, Los Angeles, CA, USA
| | - Gali H Weissberger
- The Interdisciplinary Department of Social Sciences, Bar-Ilan University, Raman Gat, Israel
| | - Laura Fenton
- Department of Psychology, USC Dornsife College of Letters, Los Angeles, CA, USA
| | | | - S Duke Han
- Department of Family Medicine, Keck School of Medicine of USC, Alhambra, CA, USA
- Department of Psychology, USC Dornsife College of Letters, Los Angeles, CA, USA
- USC Leonard Davis School of Gerontology, Los Angeles, CA, USA
- Department of Neurology, Keck School of Medicine of USC, Los Angeles, CA, USA
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Hall L, Moray J, Gross E, Lichtenberg PA. The Relationship Between Financial Decision-Making and Financial Exploitation in Older Black Adults. J Aging Health 2022; 34:472-481. [PMID: 35418261 PMCID: PMC9133059 DOI: 10.1177/08982643221085407] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Grants] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 11/16/2022]
Abstract
Objectives: This study examined the relationship between contextual measure of financial decision-making and the financial exploitation experiences of older Blacks, and the convergent validity of mental health measures of contextual decision-making items. Methods: This cross-sectional study of 104 older Black adults included 52 cases of confirmed financial exploitation. Participants were matched on age and gender. Bivariate and multivariate analyses were performed to examine these relationships. Results: The contextual measure of financial decision-making was significantly associated with financial exploitation, above and beyond the relationship of demographic measures. Further, there was strong evidence for convergent validity between the contextual measure and mental health measures. Discussion: Results underscore the significant relationship of the contextual factors involved in financial decision-making and financial exploitation. This study provides a conceptually driven approach to understanding the experiences of older Black adult victims of financial exploitation.
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Affiliation(s)
- LaToya Hall
- Institute of Gerontology, Wayne State University, 87 E. Ferry Street, Detroit, MI 48202
| | - Juno Moray
- Institute of Gerontology and Department of Psychology, Wayne State University, 87 E. Ferry Street, Detroit, MI 48202
| | - Evan Gross
- Institute of Gerontology and Department of Psychology, Wayne State University, 87 E. Ferry Street, Detroit, MI 48202
| | - Peter A Lichtenberg
- Institute of Gerontology, Wayne State University, 87 E. Ferry Street, Detroit, MI 48202
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Lichtenberg PA, Tocco M, Moray J, Hall L. Examining the Validity of the Financial Exploitation Vulnerability Scale. Clin Gerontol 2021; 44:585-593. [PMID: 34346285 PMCID: PMC8490314 DOI: 10.1080/07317115.2021.1954124] [Citation(s) in RCA: 5] [Impact Index Per Article: 1.7] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Journal Information] [Submit a Manuscript] [Subscribe] [Scholar Register] [Indexed: 10/20/2022]
Abstract
Objectives: Objectives: Lichtenberg, Campbell, Hall, and Gross used a contextual framework for financial decision-making to create and provide evidence for a new scale to assess risk for financial exploitation, the Financial Exploitation Vulnerability Scale (FEVS). This study examined the criterion validity of self-reported memory complaints and living alone on FEVS risk scores.Methods: Participants were the first 258 individuals reporting as 60 years or older and who completed the FEVS on the https://olderadultnestegg.com website between December 2020 and February 2021. Correlations, multiple regression, analysis of variance, and chi-square analyses were conducted to compare groups based on risk scores.Results: FEVS risk scores were significantly correlated with years of education, self-reported memory complaints, and living alone; 18% of unique variance was accounted for by these measures in a regression analysis. The ANOVA indicated that while there was an interaction effect for memory complaints by living alone, the majority of variance accounted for was attributed to the self-reported memory complaints measure. Conclusions: Older adults with memory complaints are in need of perceived financial vulnerability assessment.Clinical Implications: The Financial Exploitation Vulnerability Scale is a valuable self-report tool that clinical gerontologists can use in their intake assessments and follow-ups.
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Affiliation(s)
| | - Maggie Tocco
- Institute of Gerontology, Wayne State University, Detroit, Michigan, USA
| | - Juno Moray
- Institute of Gerontology and Department of Psychology, Wayne State University, Detroit, Michigan, USA
| | - Latoya Hall
- Institute of Gerontology, Wayne State University, Detroit, Michigan, USA
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Campbell RJ, Lichtenberg PA. A Short Form of the Financial Exploitation Vulnerability Scale. Clin Gerontol 2021; 44:594-603. [PMID: 33124959 DOI: 10.1080/07317115.2020.1836108] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Journal Information] [Submit a Manuscript] [Subscribe] [Scholar Register] [Indexed: 10/23/2022]
Abstract
OBJECTIVES The purpose of the present study was to develop a short form of the Financial Exploitation Vulnerability Scale (FEVS) with good psychometric properties to detect contextual risk exploitation. METHODS The sample included community volunteers who were 60 years and older, as well as elders who were referred to the SAFE program after being the victim of a financial scam or identity theft. All participants completed the FEVS as part of a larger test battery. Factors analysis was used to explore the underlying structure of the FEVS and eliminate items. ROC analysis and logistic regression were used to evaluate the clinical utility of the Financial Exploitation Vulnerability Scale - Short Form (FEVS-SF) to detect exploitation. RESULTS The resulting FEVS-SF was unidimensional, contained nine items, and had comparable internal consistency to the full FEVS. Sensitivity and specificity were good at a cut score of five or greater. FEVS-SF was a better predictor of exploitation than demographic factors and several measures of cognitive functioning. CONCLUSIONS The FEVS-SF can detect the experience of financial exploitation among older adults better than other known risk factors, and equally as well as a measure of executive functioning. CLINICAL IMPLICATIONS This tool serves a need in many professional settings (e.g., doctor's offices and Adult Protective Services) for a brief, standardized assessment measure of financial exploitation risk. This measure also provides actionable information for professionals to follow up with the standard of care for their clients.
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Affiliation(s)
- Rebecca J Campbell
- Institute of Gerontology and Department of Psychology, Wayne State University, Detroit, Michigan, USA
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