Financial capacity is critical to independent functioning in society. Older adults with cognitive impairment are at great risk for impaired financial capacity, and declining financial skills are often the first functional changes occurring in persons with Alzheimer's Disease and other dementias. This article presents early warning signs of declining financial skills in older adults, and outlines steps that families can take in response to such warning signs. Early identification of impaired financial capacity and prompt intervention are vital to protecting older individuals and their families from the financial hardships and catastrophes that can result from Alzheimer's Disease and related disorders. Copyright © 2012 American Society on Aging.