There are many challenges that come with managing personal finances, many of which are exacerbated in an economic climate that sees costs of living rise while pay remains well behind, and for those living with a condition that can make focus difficult to come by even at the best of times, those challenges can be all-consuming.
Attention Deficit/Hyperactivity Disorder (ADHD) is a neurodevelopmental disorder that can cause issues with regulating an individuals attention or focus, executive function and emotional regulation, according to the Centre for ADHD Awareness Canada (CADDAC), a not-for-profit organization providing leadership in awareness, education and advocacy for ADHD across Canada. CADDAC states that ADHD occurs in at least four percent of adults and five percent of children worldwide, and that while some may find symptoms decreasing over time, at least 60 percent of children diagnosed with ADHD continue to be impaired by symptoms in adulthood.
Despite the word ‘hyperactivity’ in its name, those living with ADHD are commonly agreed to fall under three different categories; Hyperactive, Inattentive and Combined, which is the most common. While misconceptions remain surrounding the condition, namely that those diagnosed with ADHD are loud, cannot sit still, cannot pay attention and are the stereotypical “problem” children in a classroom, individuals with ADHD, particularly Inattentive or Combined type, can often be quiet and seen as lazy or unmotivated, owing to their difficulty in regulating their attention. Indeed, CADDAC notes that those with ADHD can often be found to over-focus and have difficulty breaking that focus, when the subject is interesting or stimulating to them, as much as they may have issues with under focusing.
Because ADHD affects executive functioning in those living with the condition, which includes working memory, organization, time management, and remembering lists, routines and details, individuals with ADHD can also run into considerable difficulties in managing their finances. It’s difficult to pay a bill when your ability to remember that bill or when it is due is impacted. Additionally, because ADHD has been shown to impact the levels of dopamine (the chemical messenger that works to give individuals feelings of pleasure, satisfaction and motivation) taken in by the brain’s receptors, those living with the condition are often seen to be impulsive with their money and spending habits, according to a study published in the medical journal Neuropsychiatric Disease and Treatment in 2008.
While managing personal finances with ADHD can be frustrating or overwhelming, there are small tips that can be taken and applied to everyday life that can help to take some of the load off. Children and Adults with Attention-Deficit/Hyperactivity Disorder (CHADD) is a U.S.-based organization that works to empower those affected by ADHD by providing evidence-based information, as well as by advocating for equity, inclusion and universal rights. Their organization has provided a number of helpful tips and recommendations that, though they cannot do all of the work for an individual, can give them some relief and help to set them up for a better financial future.
Use technology to your benefit
CHADD recommends making the best possible use of technology to help manage your finance with apps, as well as the features built into many banks’ electronic banking services.
For example, CHADD recommends setting bills to auto-pay directly from your bank account in order to avoid missed payments and late fees or penalties. You can also set automatic payments for your credit cards to help pay down the balance week over week. If uncomfortable with auto-pay, then using your phones calendar and reminder apps can help to keep those bills in check as the due date approaches, which is even easier if the bills are consistently due at regular intervals. For those who are more “out of sight, out of mind,” a financial calendar kept in a highly visible spot around the house can also help provide a visual reminder of when bills might be coming due.
Another consideration is to open a second bank account dedicated only to paying bills, and setting an automatic transfer that will take a preset amount each payday and move it into the bill account before you have a chance to even think about spending it, helping to keep important funds where they need to be while also visually showing how much money is left in your primary account for other expenses. App stores also provide a number of programs that specifically help track your bills in order to avoid losing any in the midst of life, such as Intuit Credit Karma.
Keep track of your spending
One or two big purchases per month are easy to keep track of, but savings can often be found in the dozens of smaller charges that might be thoughtlessly racked up throughout the week, which can then add up to larger sums than the one or two “big” buys combined. CHADD recommends those with ADHD keep visual track of their purchases by using a notebook or memo app on their phone to manually log each purchase as it is made, then going back through at the end of the month to see where they have spent their money, and where they might be able to cut back in order to save. For every fixed expense per month like rent or a phone bill , there are dozens of variable expenses that could be eliminated or significantly reduced if kept track of, rather than spending mindlessly.
On that note…
Crunch down on impulse spending
Everyone knows the thrill of getting the Amazon package for which they’ve been waiting weeks, but those with ADHD may feel that rush more strongly, which can see their spending habits spiral out of control. It’s difficult to eliminate impulsive spending, as it is, by definition, done on impulse, but CHADD has a few recommendations to give your better judgment a fighting chance of catching up and stopping the impulse in its tracks, such as identifying your weak spots and working to stay away from them as much as possible, or by unsubscribing from retail email lists that are primarily designed to bring you to a website and spend your money. Other tips for stomping down on that impulse spending is to make it harder to spend money in the first place. CHADD suggests waiting 24 hours before making a big purchase to temper your impulses and give more time to consider whether it is a thing you really need as opposed to one you just want. Going a bit further, consider leaving debit and credit cards at home when going about town to limit yourself to a set amount of spending cash, as well as creating shopping lists for the weekly grocery run and sticking to it, rather than being tempted by the box of cookies you just noticed are on sale. It can also be beneficial to make a list of the items that make you think “I could use that / I need one of those,” writing them down as you think of them and then checking that list again after a month or two; if you haven’t thought about those items in the time since you put them there, then chances are you don’t really need them after all.
If all else fails to curb the impulse spending, or you just really want to go the extra mile, consider this advice given by a long-time banker and financial advisor (and echoed by CHADD). Grab a Tupperware, or whatever brand of plastic container you prefer, then fill it with water. Once full, take your credit cards, put them in the container, and then toss the whole thing in the freezer. When the next time comes you feel the urge to make a big credit card purchase, you’ll have to wait for the container to thaw out before you can retrieve the cards, which might give you the time you need to really consider whether the purchase, and resulting debt, are really worth it. (Additionally, you can place a sticker of an item you’re saving for directly onto your credit card so you have a visual reminder of your long-term goals staring back at you every time you take out your card to make an impulse purchase.)
Managing personal finances is not easy for everyone, and it can be doubly difficult for those living with a condition like ADHD. While the condition itself adds plenty of stress onto an individual’s life, it can also be co-morbid with depression, anxiety or other learning disabilities, which only makes dealing with something like your own financial situation even harder. Even so, there is help available in the forms of organizations like CADDAC and CHADD, and the tips they provide on their sites can help to take some of that stress off an individual’s shoulders when it comes to multiple areas of their lives, not just financially. Financial advisors at your bank can also help to set financial goals and strategies for reaching them. Additionally, therapists and counsellors who specialize in ADHD can help to provide helpful guidance in navigating difficulties of modern life.
There’s no easy answer to managing personal finances when living with ADHD as it takes plenty of organizational skills and self-restraint, famously not two of the strengths of the condition, but by taking your own personal weaknesses and strengths into consideration, and leaning on the options and assistance available in tech and helpful organizations, you can take most of the fear and anxiety out of looking at your bank balance in the future.
