Dementia and other cognitive disorders have a significant impact financially, physically, and emotionally on families as well as on society. Financially, the direct and indirect costs of dementia exceed $148 billion annually. Dementia and related disorders place a monumental strain on Medicare, Medicaid, and other health care institutions. The cost is also great in regard to the physical and emotional burden placed on families. Although dementia and other cognitive disorders are caused by physiological factors, it is helpful to think of them as conditions that also affect the psychological and social functioning of both the individuals affected and their caregivers.