When Bre Cain was in their 20s, their finances were hard to manage.
There was a lot of impulse buying, including ordering food and clothes that they couldn’t afford, to seek comfort.
Cain also said they were signing up for subscriptions they already had but had forgotten about.
But after being diagnosed with attention-deficit/hyperactivity disorder three years ago, Cain, now 30, started to understand the reasoning behind those financial actions and began to put in some financial “bumpers.”
Traversing finances with ADHD can require some adjustments, including getting over the potential shame of not having control over your spending, or ignoring the need to make a better financial plan, often called the “ostrich effect,” said Cain, who shares about their ADHD financial journey on social media at Money for Misfits.
“Money is emotional and incredibly psychological,” said Cain.
“The thing I wish I had understood sooner is that most of my spending wasn’t about the thing I was buying,” Cain said. “It was about regulation. My brain was looking for stimulation, relief, or reward, and spending was the easiest way to get it quickly.”
Once Cain understood that, “I stopped treating it as a discipline problem and started treating it as a systems problem.”
In some cases, ADHD can make managing finances more challenging, though not all those who have ADHD will struggle with money. People without ADHD also struggle with staying on a financial track.
What Is ADHD?
ADHD is a brain disorder that starts in childhood and can continue into adulthood, said Dr. David Goodman, an assistant professor in the department of psychiatry and behavioral sciences at Johns Hopkins School of Medicine.
Symptoms can include being easily distracted, difficulty keeping track of time and impulsivity. Other symptoms can also include impaired judgment and lack of organizational skills, he said.
These symptoms can impact finances and show up in overspending, falling behind on bills, overdrafting on an account or general credit rating problems, said Goodman.
Left unchecked, it can “become a downward spiral and it’s hard to get out of it,” until other resources step in, said Goodman.
Stress Can Accompany ADHD and Finances
Patients with ADHD can have a range of challenges with their finances, including frequently late or missed payments, though not necessarily for large amounts, said Christine Hargrove, a clinical assistant professor and assistant director of the Love and Money Center at the University of Georgia.
There are also often self-reported problems with “budgeting,” or what may be attempts at planning that don’t set realistic forecasts of costs to come, said Hargrove, who is also a certified financial therapist and president-elect of the Financial Therapy Association.
Hargrove suggests people experiencing these issues break up financial tasks instead of trying to do them all on the same day. They can also take advantage of apps that sync with your accounts to simplify tasks.
“I have been simplifying and automating as much as I possibly can,” said Cain.
Additionally, if a patient is on medication for ADHD, budgeting and paying bills when the medication is most active during the day could be more effective, she said.
Hargrove said another good tip is “leave future you a note on where you left off and what’s next” when working on money issues.
Here are some other tips from Hargrove:
- Put bills on auto-pay (make sure you have a sufficient margin in your account).
- Use an app that helps you see what costs are coming up.
- Remember that money management is a skill to be honed – no one is born knowing how to do it well.
- Watch out for bi-annual and annual large expenses like car insurance and taxes.
- Loop in help and search for a financial professional who you feel is a good fit for you.
- Don’t rely on debt except in absolute emergencies − especially high-interest loans.
- Pay your future self first by way of automatic investments in a 401(k) or Roth IRA. (And make sure those deposits are actually being invested rather than sitting as cash in a retirement account).
- Don’t let yourself hyperfocus on money – separate the phases (information gathering, organizing, analyzing, and problem identification/solving).
Small Steps Can Be Victories
There are a lot of “well-meaning” people who will have a lot of advice, said Hargrove, whose research has centered on ADHD.
But Goodman suggests seeking professional help if, despite your best efforts, you still find disorder in your finances. That can include education, going to resources such as CHADD — Children and Adults with Attention-Deficit/Hyperactivity Disorder, and support groups.
Otto Rivera, a certified financial planner in Orlando, Florida, understands the challenge of organizing your finances when you have ADHD.
There’s often a challenge of just getting started, said Rivera, who was diagnosed in his 40s.
“It could be from shame or it is too overwhelming and creates a paralysis,” Rivera said. “Getting started is particularly difficult and they’d just rather keep watching.”
Some people also may be more wired to focus on short-term financial goals instead of envisioning those far in the future, like retirement, Rivera said.
He said it’s a good idea to start slow and celebrate the small victories.
Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at [email protected] or follow her on X, Facebook or Instagram @blinfisher and @blinfisher.bsky.social on Bluesky. Sign up for our free The Daily Money newsletter, which breaks down complex consumer and financial news. Subscribe here.
This article originally appeared on USA TODAY: Is your ADHD making money management feel impossible? Here’s what to do.
Reporting by Betty Lin-Fisher, USA TODAY / USA TODAY
USA TODAY Network via Reuters Connect
