Financial Crisis: Your Money May Be Aging Your Brain

People whose financial situation worsens over time experience a faster decline in memory. The stress associated with economic insecurity can directly affect the brain, accelerating cognitive aging, especially in the elderly.

As people age, many face financial difficulties, whether due to retirement, increased costs, or unexpected life changes. While it is already known that more difficult economic conditions are associated with poorer mental health, it was not yet clear how changes in financial situation over time could directly affect brain function, especially memory. This study sought to understand exactly this relationship.

Researchers analyzed data from more than 7,000 adults aged 50 and older, followed over approximately ten years. This information came from a large American study that monitors health and aging.

Instead of looking only at income or wealth at a single point in time, the scientists created a more comprehensive way to measure financial well-being, taking into account various aspects of economic life, such as security, control over spending, and the ability to cope with unforeseen events.

To do this, they developed an index with eight questions that assessed different dimensions of people's financial lives. This index was tested to ensure that it truly measured what it was intended to: the level of financial security and stability over time. Thus, it was possible to track not only those who had difficulties, but also those who worsened or improved financially over the years.

In addition to financial information, participants also took memory tests every two years. These tests assessed the ability to remember recent words or information, one of the first signs of cognitive changes with aging. With this, the researchers were able to observe how each person's memory evolved over time.

The results showed that people with worse financial situations, or who experienced a significant decline over the years, exhibited a faster decline in memory. In other words, the greater the financial insecurity, the greater the tendency towards accelerated cognitive aging. This effect was even stronger in people over 65 years of age.

To ensure the reliability of the results, the scientists used statistical methods that take into account other variables that could influence the results, such as general health, age, and education. They also tested different scenarios to rule out the possibility that memory loss was causing financial problems, and not the other way around.

From a biological standpoint, one possible explanation is the effect of chronic stress. Constant worry about money can activate stress systems in the body, affecting brain areas important for memory, such as the hippocampus. Over time, this strain can contribute to cognitive decline, showing that economic factors also have a direct impact on brain health.

This study suggests that it is not just the lack of money itself, but negative changes in financial stability throughout life that can accelerate brain aging. This reinforces the importance of policies and strategies that promote financial security in middle age and old age, not only for economic well-being but also for mental and cognitive health.

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Changes in financial well-being and memory function and decline in middle-aged and older adults

Katrina L. Kezios, Jordan Vo, Zihan Chen, Sarah Weber, Allison E. Aiello, Adina Zeki Al Hazzouri 

American Journal of Epidemiology,  2026;, kwag054,

DOI:10.1093/aje/kwag054

Abstract:

Many older adults experience financial insecurity. While prior studies link lower later-life SES, financial stress, and financial shocks to worse cognitive outcomes, limited research has examined how dynamic changes in financial well-being, a multidimensional measure of financial circumstances, influence cognitive aging. Here, we examined associations between changes in financial well-being and memory outcomes among 7676 adults aged 50+ in the Health and Retirement Study (“HRS,” 2010–2020). We developed and validated an 8-item index of poor financial well-being using existing HRS survey items aligned with domains from the Consumer Financial Protection Bureau’s Financial Well-Being Scale. In confounder-adjusted linear mixed-effects models, we estimated associations of average financial well-being and significant improvements or worsening in financial well-being over four years with changes in memory z-scores calculated biennially from 2016-2020. Each 1-point worsening in average financial well-being was associated with poorer memory function (β = -0.009 SD, 95% CI, -0.020 to 0.003) and accelerated decline (β = -0.007 SD/year, 95% CI, -0.010 to -0.003). Associations were largest for participants with significant worsening of financial well-being and for those aged ≥65 at baseline. Results were robust to sensitivity analyses addressing potential reverse causation and attrition. These findings suggest that midlife and later-life declines in financial well-being may contribute to accelerated cognitive aging.