Older adults generally have a good sense of their own financial abilities – unless they have dementia. shapecharge/E+ via Getty ImagesIan McDonough, Binghamton University, State University of New York Older adults diagnosed with dementia lose their ability to assess how well they manage their finances, according to a recent study I co-authored in The Gerontologist. In comparison, people of the same age who don’t have dementia are aware of their financial abilities – and this awareness improves over time. For our study, we used data from over 2,000 adults in the U.S. age 65 and older, collected during a long-term study on aging.
We focused on how participants’ financial skills changed over time. The study began in 1998 and is still running, but we probed data collected between 1998 and 2009. Participants were assessed at one year, two years, five years and 10 years for their ability to carry out everyday tasks, including ones that required handling money. For example, they had to calculate the cost of a gym membership and a store discount rate, fill out part of a tax return and assess the cost of medical services. They also rated how well they thought they could do everyday financial tasks. Initially, none of the participants were diagnosed with dementia, but over the course of the decade, 87 participants, or 3.1%, received a dementia diagnosis. We found that even though participants’ performance on financial tasks declined as they aged, older adults who did not have dementia and older adults who had mild cognitive impairment were appropriately aware of their financial abilities. What’s more, that awareness increased over time. However, participants who were diagnosed with dementia during the study and experienced severe cognitive decline often misjudged how well they performed financial tasks.Financial scams targeting older adults are on the rise. The lack of insight into one’s cognitive abilities is called anosognosia. This study reveals a new type called financial anosognosia.
Why it matters
As people get older, their financial management skills start to deteriorate. The combination of a lifelong accumulation of wealth, declining financial abilities and a lack of awareness of those declines puts older adults at serious risk for financial scams. Few tools are available that can support families in helping cognitively impaired adults manage their finances. Our research suggests that there is a critical window of time after people begin to experience cognitive decline during which they are still aware of their financial abilities. We believe that this is when people can take action to secure their finances and develop systems to protect themselves from fraud.
What still isn’t known
Close friends or family members are often tempted to take away the financial autonomy of an older adult who is mismanaging their finances. However, that may not be the best solution, particularly for people who feel that handling their finances is a core part of their identity. More research is needed to identify how best to balance personal autonomy and the need to protect a person’s finances.
What’s next
This study used paper-and-pencil tasks to assess financial performance. But increasingly, many older adults are using online banking. E-banking simplifies many calculations, which may be helpful for older adults with declining cognition. However, e-banking can also make finances more of a black box, which may decrease a person’s awareness of their financial abilities. Furthermore, e-banking is constantly advancing, putting older adults at a disadvantage because they are more likely to be less cognitively flexible and to learn more slowly. We hope to explore whether older adults with and without cognitive decline have similar awareness of their ability to appropriately manage their finances online and identify potential financial scams. The Research Brief is a short take on interesting academic work.Ian McDonough, Associate Professor of Psychology, Binghamton University, State University of New York This article is republished from The Conversation under a Creative Commons license. Read the original article.
Why the First Year Behind the Wheel is the Most Dangerous: Data Shows Teen Drivers 3 Times More Likely to be in Fatal Crash
Teen drivers are significantly at risk of fatal crashes, with those aged 16-19 being nearly three times more likely to be involved in accidents than older drivers. The first year of driving presents heightened dangers, but with proper preparation, including coaching, technology, and smart insurance, families can mitigate these risks and promote safety.
Why the First Year Behind the Wheel is the Most Dangerous: Data Shows Teen Drivers 3 Times More Likely to be in Fatal Crash
(Feature Impact) The driver’s license photo may be slightly awkward, but the milestone is unforgettable. For families, a newly licensed teen means independence, busy schedules and a new set of responsibilities.
Motor vehicle crashes remain one of the leading causes of death for U.S. teens, according to the Centers for Disease Control and Prevention (CDC). Data from the National Highway Traffic Safety Administration shows drivers ages 16-19 are nearly three times more likely to be involved in a fatal crash than drivers 20 and older, per mile driven.
The statistics are serious, but they’re also manageable.
“With the right preparation, teen driving doesn’t have to feel overwhelming,” said Susan Irace, manager, divisional claims at Mercury Insurance. “Experience is what young drivers are building. Parents can help shorten that learning curve with structure, technology and smart coverage decisions.”
Why the First Year Matters
Federal safety data shows crash risk is highest in a teen’s first year of independent driving. Night driving, teen passengers and distracted driving increase that risk – while seat belts, graduated licensing laws and supervised practice significantly reduce it.
In 2023, more than 2,800 teens ages 13-19 were killed in motor vehicle crashes nationwide, according to the CDC. However, teen crash rates have declined over time thanks to safer vehicles, graduated driver licensing programs and greater awareness of distracted driving.
Ways to Reduce Teen Driving Risk
The experts at Mercury Insurance encourage families to focus on preparation rather than panic.
1. Coach Early and Often
Log supervised driving time in different conditions – highways, rain, nighttime
Create a simple written driving agreement outlining expectations
Limit teen passengers during the first year
Make seatbelts non-negotiable
2. Let Technology Help
Choose vehicles with safety features like automatic emergency braking and blind-spot monitoring
Use telematics or safe-driving feedback tools to reinforce good habits
Activate smartphone “Do Not Disturb While Driving” settings
3. Review Insurance Before the Keys Change Hands
Add teens to your insurance policy promptly
Revisit liability limits to protect family assets
Ask about good student and driver training discounts
“Insurance is about preparation, not fear,” Irace said. “When families combine active coaching with the right coverage, they’re setting their teen up for safer miles ahead.”
Preparation Turns Risks into Confidence
The first solo drive is a milestone, but preparation determines what comes next. By pairing common-sense coaching with today’s vehicle safety technology and thoughtful insurance planning, families can support independence while managing risk responsibly.
Our Lifestyle section on STM Daily News is a hub of inspiration and practical information, offering a range of articles that touch on various aspects of daily life. From tips on family finances to guides for maintaining health and wellness, we strive to empower our readers with knowledge and resources to enhance their lifestyles. Whether you’re seeking outdoor activity ideas, fashion trends, or travel recommendations, our lifestyle section has got you covered. Visit us today at https://stmdailynews.com/category/lifestyle/ and embark on a journey of discovery and self-improvement.
Preparing Students: Automation, AI and societal economic changes are affecting the workforce and making a significant impact on the employment prospects of future generations. Consider this guidance to put students on the path toward greater earning potential and economic mobility in a rapidly changing economy.
(Family Features) Automation, AI and societal economic changes are affecting the workforce and making a significant impact on the employment prospects of future generations. More than one-third of today’s college graduates are “underemployed,” meaning they work jobs that don’t require a college degree and may pay less than a living wage, according to data from the Federal Reserve Bank of New York. At the same time, a World Economic Forum report explored how advances in AI are threatening to negatively impact access to entry-level and even mid-level jobs for millions of Americans. Looking ahead, research by Georgetown University indicates that by 2031, 70% of jobs will require education or training beyond high school. However, data from the National Center for Education Statistics indicate only one-third of high school graduates go on to complete a college degree with many of those being in fields that are not in high-earning, high-growth professions. These challenges are not lost on today’s students. In a survey by Junior Achievement and Citizens, 57% of teens reported AI has negatively impacted their career outlook, raising concerns about job replacement and the need for new skills. What’s more, a strong majority (87%) expect to earn extra income through side hustles, gig work or social media content creation. “To put students on the path toward greater earning potential and economic mobility in a rapidly changing economy, students need proactive education and exposure to transferable skills and competencies, such as creative and critical thinking, financial literacy, problem-solving, collaboration and career planning,” said Jack Harris, CEO, Junior Achievement. This assertion is consistent with findings from the Camber Collective. This social impact consulting group identified four key life experiences students can consider and explore that positively affect lifetime earnings, including:
Completing secondary education
Graduating with a degree in a high-paying field of study
Receiving mentorship during adolescence
Obtaining a first full-time job with opportunity for advancement
Students aiming to equip themselves with the skills and experience necessary for the future workforce can seek:
Learning opportunities that are designed with the future in mind. For example, learning experiences offered through Junior Achievement reflect the skills and competencies needed to promote economic mobility.
Internships or apprenticeships that provide hands-on experience and exposure to a career field that can’t be found in a textbook.
Volunteer or extracurricular roles that develop communication and leadership skills. Virtually every career field requires these soft skills for growth and greater earning potential.
Relationships that provide insight and connection. Networking with individuals who are already excelling in a chosen field, as well as peers who share similar aspirations, offers perspective from those who are where you wish to be and potentially opens future doors for employment.
Courses that offer introductory insight into a chosen career path. Local trade or technical schools and other training organizations may even offer certifications that align with a student’s area of interest.
To learn more about how students can pursue education for what’s next, visit JA.org. SOURCE:
Tighter Budgets Haven’t Stopped Travel. They’ve Changed How Americans Plan
Tighter Budgets Haven’t Stopped Travel:Tighter budgets are altering American travel plans, but most still prioritize vacations despite financial concerns.
Tighter Budgets Haven’t Stopped Travel. They’ve Changed How Americans Plan
(Tiffany Miller for ALG Vacations) The flight search is open, but many travelers are pausing before they book. Prices feel higher than last year, headlines are heavy and budgets are tighter. Still, the question isn’t whether to take a vacation, but how to make it work.
A November 2025 survey from ALG Vacations of U.S. adults planning to travel in 2026 shows that financial pressure is reshaping how people approach vacations, not whether they take them. While 81% say they have at least some concern about their household finances in the months ahead, 92% say they would still travel even if tighter finances required scaling back.
Financial pressure shapes decisions, not demand That shift shows up in the small moments of planning. Travelers are taking longer to compare prices, reconsidering timing and adjusting expectations before they book.
Inflation and rising prices top the list of concerns, cited by 61% of respondents, reinforcing why travelers are rethinking destinations, trip length and overall costs.
Concerns about global events and safety follow at 39%, with broader political and economic instability close behind at 38%.
Still, those worries rarely lead travelers to walk away from travel altogether. Instead, many describe pulling back in measured ways, scaling down plans, rethinking details and making trade-offs that keep a trip possible, even if it looks different than originally imagined.
Experience changes how travelers move from planning to booking Not all travelers navigate those trade-offs the same way. For some, uncertainty slows the process. For others, familiarity helps clear the final hurdle.
Among respondents who have previously booked a packaged vacation through a major vacation brand, 80% say they plan to take an international trip in the next year, compared with 46% of those without that experience.
That confidence carries into spending decisions as well. Sixty-seven percent of packaged-vacation travelers expect to spend more than $2,500 on their next trip, compared with 47% of those who have never booked a packaged vacation.
Taken together, the findings point to a confidence gap, with prior experience linked to greater comfort committing to international travel and higher spending.
Professional guidance plays a larger role when planning gets complex For many travelers, planning no longer stops at picking dates and destinations. Rising prices, shifting availability and higher expectations have turned vacation planning into a series of decisions that feel harder to navigate alone.
That complexity shows up most clearly among travelers with prior packaged-vacation experience. Ninety-four percent say they plan to use a travel advisor, compared with 81% of those without prior packaged-vacation experience.
The gap suggests that familiarity with structured travel planning often leads travelers to seek expert guidance. As trips become more layered, getting the details right matters as much as the destination itself.
Travel remains a priority, even as decisions slow The findings suggest that travel is still very much on the table, even as decisions take longer to make. Travelers are weighing trade-offs, seeking guidance and leaning on experience as they plan, rather than walking away altogether.
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The flight search may stay open a little longer this year. But for many Americans, the trip is still happening.
Methodology ALG Vacations commissioned Atomik Research to conduct an online survey of U.S. adults planning to travel and travelers with prior packaged-vacation experience in the United States.
The survey included 1,000 adults planning to travel and a subsample of 502 respondents who had previously booked a packaged vacation through a major vacation brand.
The margin of error is plus or minus 3 percentage points for the full sample and 4 percentage points for the packaged vacation subsample at a 95 percent confidence level.
Fieldwork was conducted in November 2025. Atomik Research, part of 4media group, is a creative market research agency.
Ian McDonough, Associate Professor of Psychology, Binghamton University, State University of New York This article is republished from The Conversation under a Creative Commons license. Read the original article.
