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

Pachana, Nancy A. and Byrne, Gerard J. and Wilson, Jill and Tilse, Cheryl and Pinsker, Donna M. and Massavelli, Bronwyn and Vearncombe, Katharine J. and Mitchell, Leander K. (2014) Predictors of financial capacity performance in older adults using the Financial Competence Assessment Inventory. International Psychogeriatrics, 26 (6). pp. 921-927. ISSN 1041-6102


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. Copyright © International Psychogeriatric Association 2014.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Files associated with this item cannot be displayed due to copyright restrictions.
Faculty/School / Institute/Centre: No Faculty
Faculty/School / Institute/Centre: No Faculty
Date Deposited: 06 Apr 2017 23:53
Last Modified: 07 Apr 2017 03:05
Uncontrolled Keywords: aging; anxiety; capacity assessment; financial capacity; social vulnerability; Adult; Aged; Aged, 80 and over; Anxiety; Cognition Disorders; Dementia; Depression; Female; Financing, Personal; Humans; Male; Mental Competency; Middle Aged; Neuropsychological Tests; Psychological Tests; Questionnaires; Young Adult; Public Health, Social Medicine and Epidemiology; Gerontology and Geriatrics; Psychiatry; Health Policy, Economics and Management;
Fields of Research (2008): 17 Psychology and Cognitive Sciences > 1702 Cognitive Sciences > 170202 Decision Making
17 Psychology and Cognitive Sciences > 1701 Psychology > 170113 Social and Community Psychology
Fields of Research (2020): 52 PSYCHOLOGY > 5204 Cognitive and computational psychology > 520402 Decision making
52 PSYCHOLOGY > 5205 Social and personality psychology > 520599 Social and personality psychology not elsewhere classified
Socio-Economic Objectives (2008): C Society > 92 Health > 9202 Health and Support Services > 920209 Mental Health Services
C Society > 92 Health > 9201 Clinical Health (Organs, Diseases and Abnormal Conditions) > 920112 Neurodegenerative Disorders Related to Ageing
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