Dorien Bangma

FDM CAPABILITY OF PATIENTS WITH MCI, AD AND PD | 113 Introduction and Methods We make many financial decisions in our everyday life, ranging from relatively simple decisions, such as buying products at the supermarket, to relatively complex ones, such as taking out a mortgage or insurances. By making financial decisions we can meet our own (and if necessary other people’s) basic needs, e.g., buying food and providing a roof over our head. Adequate capability to make financial decisions is also necessary to our independence or autonomy (i.e., our self-reliance and ability to decide for ourselves what needs to happen). It comes as no surprise, then, that loss of or reduction in that capability often has major consequences for both the person concerned and those around them, and can result in serious financial problems. The capability to make financial decisions is defined as successfully managing (or guiding the management of) a person’s own financial resources in line with their needs and goals (Appelbaum et al., 2016). As shown schematically in Figure 5.1, ‘financial competence’ and ‘financial performance’ underlie the capability to make financial decisions. Financial competence refers to financial skills, which we can measure in a controlled setting and Financial judgment Financial competence (controlled setting) Financial knowledge Financial performance (everyday life functioning) Capability to make financial decisions Contextual factors Figure 5.1. Conceptual model of financial capability (based on figure S-1 in Appelbaum, et al., 2016).