Who doesn’t want to save money, whether it’s for a vacation, emergency planning or retirement? It may sound easy, but for people with attention deficit hyperactivity disorder, handling finances may be more of a struggle than it is for a neurotypical person.
“Managing finances can be a challenge for people with ADHD,” notes CHADD’s National Resource Center on ADHD. “The symptoms of procrastination, disorganization and impulsivity can wreak havoc on your finances.” Children and Adults with Attention-Deficit/Hyperactivity Disorder is a nonprofit organization working to “improve the lives of people affected by ADHD.”
[See: Hoarding, ADHD, Narcissism: Inside the Minds of History’s Great Personalities.]
The Role of Executive Function
” Executive function, which involves planning, organizing and learning from consequences, are skills needed to manage money,” says Stephanie Sarkis, an author and psychotherapist in Tampa, Florida. “However, these are all impaired in an ADHD individual.” Sarkis, who co-wrote “ADD and Your Money,” explains that people with the disorder may be inclined to spend too much without being mindful of the fact that the month prior, they did the same thing and ended up overdrawing their bank account. Additionally, she says many people with ADHD often don’t take advantage of their employer’s retirement plan because they tend to “live day to day and not think too much about the future.”
“The impulsive, live-in-the-moment lifestyle of the individual with ADHD makes it difficult to remember upcoming expenses,” the CHADD National Resource Center notes.
Sue West, a productivity and ADHD coach who resides in New Hampshire, fully agrees that executive functioning issues are at hand when it comes to ADHD and money management issues. “It’s a classic executive function skills puzzle,” she says. “There are lots of moving pieces such as different dates and matching up bills with when the money is available.” Things like keeping track of paper bills, what’s paid automatically versus what’s not and even the notion of having to face bills in the first place are all challenging for someone with ADHD, West explains. Add to that the responsibilities of self-employment or managing bills for aging parents or younger adults, and she says challenges with executive function skills can surge even more. She notes that there’s also “an uneven sense of time inherent in the ADHD brain,” which can be problematic when it comes to date-specific concepts such as paying bills by their due date.
The problems that can result from such mismanagement transcend merely what’s happening in the ADHD person’s bank account. West explains that it can become emotionally draining, where a person may develop negative feelings if there’s been more spending than saving or if “you’ve gotten into debt or been late on a few bills.”
It can even put a strain on relationships. In her blog, 8 Proven ADHD Money Strategies, West notes her observations of couples where differing money management styles and related expectations create stress. In one case, where one person has ADHD and the other does not, she writes about money being “boring” and expressions of not feeling in control of their financial life were often expressed by the frustrated couple.
Work Together
“Money mismanagement causes tremendous friction for couples,” says West, who has ADHD. She suggests people circumvent the problem altogether by abiding by the suggestions indicated in her blog, which include, but aren’t limited to, setting up autopay, becoming more educated about financial matters and working together. In her household, for example, she says she’s the person responsible for establishing reminders and ensuring that more is saved than spent while her partner, who does not have ADHD, is the “executive functioning pro” who is good with numbers and can do a lot of planning in her head. Drawing on each other’s strengths and working side by side to handle finances can be helpful, West says.
[See: 8 Things You Didn’t Know About Counseling.]
… But First Things First
Sarkis says that as a first step, it’s essential to seek ADHD treatment by a clinician. She points to a study in which participants were given a choice to take less money quickly or wait longer and receive more money. Those who took their ADHD stimulant medication waited longer periods of time to receive more money. The people in the study who were not taking such meds opted to wait a shorter amount of time to receive less money, despite knowing that they would have received more money if only they waited longer. This suggests that treatment with stimulants, which play a role in managing an ADHD person’s impulsivity, could potentially stave off impulsive spending habits, causing people instead to follow wiser, longer-term financial strategies. ” Get treatment,” she says. “It can help — with the most effective treatment being stimulant medication.”
She also says that another helpful treatment option may include cognitive behavioral therapy, which she says can help manage potentially damaging internal voices. In this instance, it may be that inner voice that says, “You need to buy this.”
Direct Deposit and Autopay
Both West and Sarkis are fans of direct deposit and autopay. “Get direct deposit for checks and put a certain percentage into savings,” Sarkis says. She explains that setting up direct deposit, as well as using autopay, takes the onus off the individual, so there’s less to worry and think about — and potentially mismanage.
West writes on her blog that autopay that’s scheduled through the bank is an excellent method. Rather than having to remember which bills are on autopay and which ones you personally schedule and handle, this process makes it much easier. “Simplify the pieces so it’s less difficult and/or annoying,” she writes.
Other Means of Keeping Finances in Line
It may also be worth exploring hiring a financial professional to help keep track of finances, Sarkis notes.
[See: 10 Concerns Parents Have About Their Kids’ Health.]
Whether you work with a financial professional or not, Sarkis also recommends turning to money management software or budget tools such as Quicken and to share your goals with others. Conveying your financial goals with others creates an accountability factor, she says, making people more inclined to stay on track. Another way to keep an eye on spending and saving habits? She recommends writing down goals. “That way, you’re more likely to stick to them.” When it comes to shopping, “always make a list when you go to the store, and before you pay, look in your cart,” Sarkis says. “If there’s anything in it that’s not on the list, ask, ‘Do I need this?'”
“In short,” West says of money management and ADHD, “it is a perfect storm or tsunami of executive function challenges which are all rolled into one system.” She stresses that such a system, when it encompasses wise financial practices, can help people with the disorder — and their families — live the lives they want.
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Money Management Tips for Adults With ADHD originally appeared on usnews.com
