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He's insisting his neighbors have stolen all his money. I'm his son & POA. I know no one has taken his money.

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The simple answer is, sadly enough, you can’t. If Dad’s dementia has progressed to the point that he is delusional and paranoid, you won’t be able to convince him of anything, nor should you. It will only serve to upset him more.

Finances should not be a subject that’s discussed with him. He should not have access to his checkbook or bills. He won’t understand what he’s seeing or reading. If he asks, tell him everything is fine. His money is fine and no one has stolen it. If he’s been told he’s going on Medicaid because he doesn’t have any money, he will obsess about it and become very stressed. Use the Therapuetic Fib and tell him his money is fine. Redirect the conversation to something else.
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Assuming he’s not writing any checks anymore, why would you need to tell him all his money is gone? This is where the therapeutic fib comes in. Mom and I rarely talk money, just sometimes she wonders how she’s paying for the nice place. I tell her that her pension that she worked hard for and SS are covering it. They’re not of course but she’d be very upset to know shes also on Medicaid (The Dole, in her words). But if this is something you feel you need to tell him for some reason, and it’s upsetting to him, I would even show him a fake altered checkbook showing an inflated amount. Anything to let him feel everything’s being handled well and all right.
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I tell my husband that the police called and tole me that they caught the thief and it was a case of mistaken identity.
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I agree with Almijoy: You cannot convince your father of anything. Simply assure him that you are taking care of his finances and he doesn't need to worry about anything. Tell him that it is your turn to take care of him. I have to do this with my mother also. She cannot understand numbers at this point, but often asks me how much money she has. I tell her and do not hide anything, but do not go into detail she will not comprehend. If I do, she gets confused and agitated. Think of it like you would talk to a small child: answer the questions, but keep it simple.
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My Mom would say "we have to talk". She felt she needed money for Daycare and later the AL. Since she didn't leave the facilities for outings I told her all her needs were met and if she ever needed money I would bring it to her.
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Ah, desperate and bewildered son, I see your dilemma! It is one thing to convince him he doesn't have to worry about finances, but quite another to not give him the money he wants.

Therapeutic fibs are still the way to go.

Focus on the non-financial aspects of the situation. He needs to get his strength back so he can walk again before he can leave the center. Then you can look at his finances.

Or get into his fantasy. "Let's make the plans first, and leave your money earning interest until you are ready." Can he see well enough to view enlarged screen pictures? Maybe you can view various kinds of boats online and discuss which would suit him. And then perhaps come up with some rough costs of what it would take to build one like that. Or research with him what kind of permits he would need. Or figure out where he could rent space for the building project. You're not turning him down, and you are sharing his interest, but you are not handing over non-existent money!

If he changes his mind to, say, restoring an old mill or church or something to live in, get into it with him and research all the details. Where is the nearest old building that might be suitable, etc.

With limited vision and hearing, these kinds of discussions will be challenging, but no more difficult that try to explain his financial situation, and a lot more fun.

It will do him good to be taken seriously.
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My dad has dementia and he constantly asks about his money and how is my mother paying the bills. I just tell him we have plenty of money (we don't) and not to worry about it. He just says ok. Until he brings it up a couple days later again... If I said anything more, he'd get agitated and upset.
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Jeannegibbs...perfect answer! Go along, stall. The planning will be interesting and fun. Assuage his money fears, even with doctored numbers if needed. This will be a therapeutic Plan, not just a fib. This will be a very loving project.
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I actually do this with my 10 year old grandson who is on the autism spectrum. His dream is to build a restaurant complex. He loves for me to sit with him and draw all the facets of building the restaurant, even the menu! It’s fun!
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yeah any kind of fib you can tell them is how you gotta do it. its sad but you cant talk "sensible talk". cant talk "reasonable talk"

you have to be ready to squirm out of situations. after sometime, you will be a pro!

I still catch myself trying to reason with my mom. sometimes I just stop, and say lets go for a walk! (even if person in wheelchair, if youre able to push)

if we just sit in her AL room then all kinds of uncomfortable conversations start to come up. now my moms train of thought is so broken, its gotten easier to change the subject.
at first I felt so bad telling "lies". its very unnatural to look parent in the eyes and say something untruthful.
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