Hostname: page-component-8448b6f56d-mp689 Total loading time: 0 Render date: 2024-04-18T19:51:06.568Z Has data issue: false hasContentIssue false
  • English
  • Français

Predictors of financial capacity performance in older adults using the Financial Competence Assessment Inventory

Published online by Cambridge University Press:  26 February 2014

Nancy A. Pachana ,
Gerard J. Byrne ,
Jill Wilson ,
Cheryl Tilse ,
Donna M. Pinsker ,
Bronwyn Massavelli ,
Katharine J. Vearncombe  and
Leander K. Mitchell
Nancy A. Pachana*
Affiliation:
School of Psychology, The University of Queensland, Brisbane, Queensland, Australia School of Medicine, The University of Queensland, Brisbane, Queensland, Australia School of Social Work and Human Services, The University of Queensland, Brisbane, Queensland, Australia
Gerard J. Byrne
Affiliation:
School of Psychology, The University of Queensland, Brisbane, Queensland, Australia School of Medicine, The University of Queensland, Brisbane, Queensland, Australia School of Social Work and Human Services, The University of Queensland, Brisbane, Queensland, Australia
Jill Wilson
Affiliation:
School of Psychology, The University of Queensland, Brisbane, Queensland, Australia School of Medicine, The University of Queensland, Brisbane, Queensland, Australia School of Social Work and Human Services, The University of Queensland, Brisbane, Queensland, Australia
Cheryl Tilse
Affiliation:
School of Psychology, The University of Queensland, Brisbane, Queensland, Australia School of Medicine, The University of Queensland, Brisbane, Queensland, Australia School of Social Work and Human Services, The University of Queensland, Brisbane, Queensland, Australia
Donna M. Pinsker
Affiliation:
School of Psychology, The University of Queensland, Brisbane, Queensland, Australia School of Medicine, The University of Queensland, Brisbane, Queensland, Australia School of Social Work and Human Services, The University of Queensland, Brisbane, Queensland, Australia
Bronwyn Massavelli
Affiliation:
School of Psychology, The University of Queensland, Brisbane, Queensland, Australia School of Medicine, The University of Queensland, Brisbane, Queensland, Australia School of Social Work and Human Services, The University of Queensland, Brisbane, Queensland, Australia
Katharine J. Vearncombe
Affiliation:
School of Psychology, The University of Queensland, Brisbane, Queensland, Australia School of Medicine, The University of Queensland, Brisbane, Queensland, Australia School of Social Work and Human Services, The University of Queensland, Brisbane, Queensland, Australia
Leander K. Mitchell
Affiliation:
School of Psychology, The University of Queensland, Brisbane, Queensland, Australia School of Medicine, The University of Queensland, Brisbane, Queensland, Australia School of Social Work and Human Services, The University of Queensland, Brisbane, Queensland, Australia
*
Correspondence should be addressed to: Nancy A Pachana, School of Psychology, The University of Queensland, Brisbane, Queensland 4072, Australia. Phone: +61-7-3365-6832. Email: npachana@uq.edu.au.
Get access Rights & Permissions [Opens in a new window]

Abstract

Background:

Declines in financial capacity in later life may arise from both neurocognitive and/or psychiatric disorders. The influence of socio-demographic, cognitive, health, and psychiatric variables on financial capacity performance was explored.

Methods:

Seventy-six healthy community-dwelling adults and 25 older patients referred for assessment of financial capacity were assessed on pertinent cognitive, psychiatric, and financial capacity measures, including Addenbrooke's Cognitive Examination – Revised (ACE-R), Informant Questionnaire on Cognitive Decline in the Elderly (IQCODE), Geriatric Depression Scale (GDS), Geriatric Anxiety Inventory (GAI), selected Neuropsychiatric Inventory (NPI) items, Financial Competence Assessment Inventory (FCAI), and Social Vulnerability Scale (SVS).

Results:

The internal consistency of the debt management subscale of the FCAI was relatively poor in our sample. Financial capacity performance differed between controls and patients. In our sample, performance on the FCAI was predicted by Mini-Mental State Examination, IQCODE, and GAI, but not by ACE-R, GDS, NPI items, or SVS (adjusted R2 = 0.7059).

Conclusions:

Anxiety but not depression predicted financial capacity performance, possibly reflecting relatively low variance of depressive symptoms in this sample. Current cognitive decline as measured by the informant-rated IQCODE was more highly correlated to financial capacity than either educational attainment or ACE-R scores. Lack of significance of ACE-R data may reflect the instrument's decreased sensitivity to domains relevant to financial capacity, compared with more detailed neuropsychological assessment tools. The FCAI displayed fairly robust psychometric properties apart from the debt management subscale.

Keywords

financial capacitycapacity assessmentsocial vulnerabilityanxietyaging
Type
Research Article
Information
International Psychogeriatrics , Volume 26 , Issue 6 , June 2014 , pp. 921 - 927
Copyright
Copyright © International Psychogeriatric Association 2014 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Acierno, R. et al. (2010). Prevalence and correlates of emotional, physical, sexual, and financial abuse and potential neglect in the United States: The National Elder Mistreatment Study. American Journal of Public Health, 100, 292–297.Google Scholar
Beattie, E. R. A., Pachana, N. A. and Franklin, J. S. (2010). Double jeopardy: co-morbid anxiety and depression in late life. Research in Gerontological Nursing, 3, 209–220.Google Scholar
Braun, M., Gurrera, R. J., Karel, M. J., Armesto, J. C. and Moye, J. (2009). Are clinicians ever biased in their judgments of the capacity of older adults to make medical decisions? Generations, 33, 78–91.Google Scholar
Cummings, J., Mega, M., Gray, K., Rosenburg-Thompson, S., Carusi, D. and Giorbein, J. (1994). The neuropsychiatric inventory: comprehensive assessment of psychopathology in dementia. Neurology, 44, 2308–2314.Google Scholar
Folstein, M. F., Folstein, S. E. and McHugh, P. R. (1975). “Mini-Mental State.” A practical method for grading the cognitive state of patients for the clinician. Journal of Psychiatric Research, 12, 189–198. doi:10.1016/0022-3956(75)90026-6. PMID 1202204.Google Scholar
Griffith, H. R., Belue, K., Sicola, A., Krzywanski, S., Zamrini, E., Harrell, L. and Marson, D. C. (2003). Impaired financial abilities in mild cognitive impairment: a direct assessment approach. Neurology, 60, 449–457.Google Scholar
Jorm, A. F. (1994). A short form of the Informant Questionnaire on Cognitive Decline in the Elderly (IQCODE): development and cross-validation. Psychological Medicine, 24, 145–153.CrossRefGoogle Scholar
Kershaw, M. M. and Webber, L. S. (2008). Assessment of financial competence. Psychiatry, Psychology and Law, 15, 40–55.Google Scholar
Lusardi, A. and Mitchell, O. S. (2011). Financial literacy around the world: an overview. Journal of Pension Economics and Finance, 10, 497–508.Google Scholar
Marson, D. C. (2001). Loss of financial capacity in dementia: conceptual and empirical approaches. Aging, Neuropsychology and Cognition, 8, 164–181.Google Scholar
Marson, D. C., McInturff, B., Hawkins, L., Bartolucci, A. and Harrell, L. E. (1997). Consistency of physician judgments of capacity to consent in mild Alzheimer's disease. Journal of the American Geriatrics Society, 45, 453–457.CrossRefGoogle ScholarPubMed
Marson, D. C. et al. (2000). Assessing financial capacity in patients with Alzheimer's disease: a conceptual model and prototype instrument. Archives of Neurology, 57, 877–884.Google Scholar
Mathuranath, P. S., Cherion, P. J., Mathew, R., George, A., Sankarg, , and Sarma, P. (2005). Instrumental activities of daily living scale for dementia screening in elderly people. International Psychogeriatrics, 17, 461–474.Google Scholar
Mioshi, E., Dawson, K., Mitchell, J., Arnold, R. and Hodges, J. R. (2006). The Addenbrooke's Cognitive Examination Revised (ACE-R): a brief cognitive test battery for dementia screening in elderly people. International Psychogeriatrics, 17, 461–474.Google Scholar
Moye, J., Marson, D. C. and Edelstein, B. (2013). Assessment of capacity in an aging society. American Psychologist, 68, 158–171.Google Scholar
Okonkwo, O. C. et al. (2008). Awareness of deficits in financial abilities in patients with mild cognitive impairment: going beyond self-informant discrepancy. American Journal of Geriatric Psychiatry, 16, 650–659.Google Scholar
Pachana, N. A., Byrne, G. J., Siddle, H., Koloski, N., Harley, E. and Arnold, E. (2007). Development and validation of the Geriatric Anxiety Inventory. International Psychogeriatrics, 19, 103–114.Google Scholar
Pinsker, D. M., Stone, V. E., Pachana, N. A. and Greenspan, S. (2006). Social vulnerability scale for older adults: a validation study. Clinical Psychologist, 10, 109–119.Google Scholar
Pinsker, D. M., McFarland, K. and Pachana, N. A. (2010). Exploitation in older adults: personal competence factors and social vulnerability. Journal of Applied Gerontology, 29, 740–761.Google Scholar
Sherod, M. G. et al. (2009). Neurocognitive predictors of financial capacity across the dementia spectrum: Normal aging, mild cognitive impairment, and Alzheimer's disease. Journal of the International Neuropsychological Society, 15, 258–267.Google Scholar
Tombaugh, T. N. and McIntyre, N. J. (1992). The Mini-Mental State Examination: a comprehensive review. Journal of the American Geriatrics Society, 40, 922–935.Google Scholar
Triebel, K. L. et al. (2009). Declining financial capacity in mild cognitive impairment: a 1-year longitudinal study. Neurology, 73, 928–934.Google Scholar
Widera, E., Steenpass, V., Marson, D. and Sudore, R. (2011). Finances in the older patient with cognitive impairment. Journal of the American Medical Association, 305, 698–706.Google Scholar
Yesavage, J. A. et al. (1983). Development and validation of a Geriatric Depression Screening Scale: a preliminary report. Journal of Psychiatric Research, 17, 37–49.Google Scholar