Have you set financial goals, but each time this occurs, you immediately have a temptation to spend?
Managing finances is daunting for anyone, but add in ADHD, and these financial challenges can be exacerbated. Many individuals with ADHD often avoid looking at their finances altogether and forget to pay their bills or manage debt.
A neurodiversity-affirming therapist or coach can support you with developing a system to keep your finances organized and effectively juggle your expenses, debt, and savings.
In this blog post, we’ll explore ADHD itself and the financial challenges faced by individuals living with this neurodevelopmental condition. Let's also delve into effective strategies to create a more manageable approach to your finances.
What Is ADHD?
ADHD is a neurodevelopmental difference and neurodivergent condition that’s primarily diagnosed in childhood, though it persists into adulthood. Consisting of inattention, hyperactive, and impulsive traits, ADHD can interfere with your relationships, work, school, and other life activities.
Types of ADHD
ADHD includes a variety of traits that can interfere with day-to-day functioning. These are broken down into the following three types of ADHD:
Hyperactive-Impulsive ADHD
Individuals with primarily hyperactive-impulsive ADHD exhibit hyperactive and impulsive symptoms as their main characteristics, with no inattentive symptoms. This may involve difficulty focusing on or initiating tasks, leading to careless mistakes and unfinished projects.
Inattentive Type ADHD
A common misconception about ADHD is that one must be hyperactive to have ADHD. In reality, primarily inattentive ADHDers display inattentive symptoms excessively, without impulsive or hyperactive behaviours.
Primarily Combined-Type ADHD
Individuals with combined-type ADHD show a mix of inattentive, impulsive, and hyperactive symptoms. To qualify for a diagnosis of combined-type ADHD, you must meet criteria for both inattentive and hyperactive-impulsive types, which requires demonstrating five out of the 9 traits as an adult from each type.
The Connection Between ADHD and Financial Challenges
The financial challenges that each individual with ADHD faces will be unique to them, but here are some common reasons why ADHD can complicate your financial situation:
Executive Functioning Difficulties
Many of the issues that ADHDers face when it comes to financial management involve challenges with executive functioning, which are the mental processes needed to plan, focus, work toward a goal, and control your impulses to act against your goal.
Individuals with ADHD may avoid making financial decisions or make them impulsively.
Here are some other financial challenges you may face as a result of executive dysfunction:
Forgetting to pay your bills or make recurring payments
Choosing short-term rewards over longer-term benefits. Instead of saving for a house or retirement, you may go on vacation instead.
Trouble organizing the paperwork needed to do taxes or pay your bills.
Losing track of your spending
Impulsivity in Spending
A core aspect of ADHD is impulsivity. This can lead to making spontaneous purchases, which can make budgeting and saving a real challenge.
For example, a sale or advertisement can trigger impulse buying, diverting money away from crucial expenses like rent or groceries.
Emotional Regulation and Stress
Individuals with ADHD may also experience emotional dysregulation. Even the thought of finances may cause sensory overload for some individuals.
Many individuals with ADHD may also react to financial challenges with anxiety or frustration, which may further hinder their ability to manage their money effectively.
Strategies for Financial Management with ADHD
Understanding the specific difficulties faced when managing finances as a person with ADHD allows for the development of effective and tailored strategies.
Here are some practical tips to enhance financial management:
Use Your Strengths to Your Advantage
Despite the challenges of ADHD, we each have our strengths. Recognizing these strengths could help you to navigate the challenges associated with ADHD. Here are some of the strengths you may have:
Hyper-focused on passions: Hyper-focusing on strengths can sometimes create outstanding outcomes. In addition, goal-directed motivation may benefit ADHDers. You can use this to link your passions to your finances in some way.
Outside-the-box thinking & creativity: You may be able to think on your feet and come up with the most innovative, long-lasting solutions to problems. You can use this to your advantage to some up with outside-the-box ways to save.
Try Body Doubling
Do you find it difficult to focus on creating a budget or paying off your bills?
If this is you, you may want to find an accountability buddy or body double that can help to motivate you so you can get the task done.
This friend will sit alongside you as you work on the tasks that you need to get done. This can keep you accountable, focused, and motivated.
Create a Structured Budgeting System
Losing track of your bills is something that is all too common for ADHDers.
You can take advantage of the digital tools that are available to you.
Make use of budgeting apps, such as Mint, YNAB (You Need A Budget), or PocketGuard, which can provide visual cues and alerts for upcoming bills or budgeting limits. This helps to simplify the process and keep you on track.
You could also schedule a specific day each month dedicated to reviewing your finances, adjusting budgets, and setting goals.
This repetition can help create a habit around financial management.
Automate Payments and Savings
We all know that your energy levels may change on a month-to-month basis.
Despite these changes in your energy levels, your bills just keep coming.
As a result, you may be more likely to miss a payment during the months you are facing lower energy levels.
You can automate payments as much as possible to reduce the possibility of late fees and ensure that essential payments go out on time.
If you are looking to save, set up automated transfers to savings accounts. Even a small, consistent amount can grow over time and make saving a less daunting task.
Break Down Financial Goals into Smaller Tasks
When financial goals feel overwhelming, break them into actionable steps. For example, instead of general savings goals, specify amounts to save weekly:
$20/week for groceries
$10/week for entertainment
Adopt the 30-Day Rule or STOP method for Purchases
To challenge impulsive spending, adopt the 30-day rule.
This means if you want to make a significant purchase, wait 30 days before buying. This time frame helps clarify whether it’s a need or a temporary desire.
If you can’t wait 30 days to make the decision, use the STOP method instead.
This STOP method involves taking a brief pause and thinking about a decision before taking any action. You are essentially reducing the risk of making an impulsive decision by doing so.
Utilize Visual Aids and Reminders
Organization is a key struggle for those with ADHD.
For this reason, I’d recommend taking advantage of systems that can support you with trying to stay organized. These could include:
A Color-Coded Calendar: A color-coded calendar can help highlight due dates for bills, payment reminders, and spending limits.
Visual Cues: Use sticky notes in visible places to remind you about financial tasks, such as filing important documents or checking listings for upcoming financial goals.
Set Boundaries for Financial Decisions
When making financial decisions, set specific time limits. This can help prevent analysis paralysis that often accompanies decision-making for those with ADHD.
Educate Yourself About Personal Finance
Consider taking online courses or reading books about personal finance that cater to your learning style.
You may also want to consider listening to interactive videos on Instagram if you need more stimulation for your learning.
@ellyce.fulmore on Instagram is a Canadian ADHDer who provides great financial advice.
Celebrate Small Wins
Recognize and celebrate even the smallest financial milestones.
Whether it’s paying a bill on time or saving a certain amount, acknowledging these successes enhances motivation and reinforces positive behavior.
Specific Strategy for Students with ADHD
Being a neurodivergent student can come with a variety of additional costs, including ADHD coaching, psychotherapy, equipment, and tutoring.
Did you know that neurodivergence may be considered a disability if it impacts your day-to-day functioning and that students with a disability may be eligible for certain financial grants? These grants are financial support from the government that you do not need to repay.
Some examples of these in Canada include the Bursary for Students with Disabilities and the Canada Student Grant for Students with Disabilities.
The BSWD is a financial aid program in Ontario, Canada, designed to support students who have disabilities. This bursary aims to help cover additional costs that students with disabilities may incur while pursuing their education.
The Canada Student Grant for Students with Disabilities is a grant that may support those who may not be eligible for the BSWD. It provides $2,800 per year of grant support that you do not have to repay.
Disclaimer: In the application process, Blue Sky Learning can provide a service provider quote for coaching and therapy for the BSWD Application facilitated by your postsecondary institution. We always recommend consulting your Accessibility Office for eligibility and application details.
Book a Free Consultation with Blue Sky Learning
If overwhelming financial challenges persist, consulting with a neurodiversity-affirming therapist or coach can provide personalized strategies for navigating your financial challenges.
Our team is here to help.
Contact us today for a free consultation and personalized guidance tailored to your unique circumstances.
Comments