My dear Friends,

I have a confession to make, seemingly forever; I struggle with almost every aspect of managing my finances.

I am constantly fighting impulse spending, and the idea of budgeting causes mental exhaustion. In the past, I often only half listened to what my wealth manager had to say. Because my brain had so many other thoughts to dive into, why focus on one.

Years ago, however, late in life, I was diagnosed with ADHD. Since receiving the diagnosis, a lot has changed. Because I now better understand how ADHD manifests and impacts my financial decision-making, or better, the lack thereof. Today I have tools in place to design ways of managing my finances that are aligned with my personality traits.

But why does being neurodiverse make finances so much more stressful for women? And more importantly, can someone with ADHD learn to manage the pitfalls?

Different, yet just normal

Being neurodiverse, respectively having been diagnosed with ADHD, is not an illness. It just means being a bit different, period.

Rather late in life, I was diagnosed with ADHD in 2016. It was a relief for me as I finally had an explanation for many things I was either struggling with or others considered “weird”.

For example, establishing routine is vital for me. If someone interrupts this routine, I immediately feel restless and it leaves me off the trolley for the rest of the day. The older I get, the worse this feeling gets.

I am lost in my thoughts

Max, diagnosed with ADHD at 30

Crowds, like too much noise, make me extremely fidgety. I love silence, probably because my brain is hyperactive all the time. Thoughts seem to run through my brain like high-speed trains.

Tidy surroundings are quintessential; I can not be in untidy places. In my private space, everything has its place and a certain order; once ruffled, I feel disquiet. Worse, I can not fathom that anybody can live in a less-than-tidy and spotless environment, and I would start tidying and cleaning before I would make myself comfortable.

Perceptions

However, there are also less fortunate traits. For example, I can be pretty erratic, especially if my routine is turned upside down. When someone or something stresses me, I end up in impulsive behaviour mode. This can affect all areas of my life, from relationships or spending money to changing previously agreed strategies within seconds.

.. it is like coming from a diffrent planet”

Judy, Diagnosed with ADHD at 47

Striving for normality and keeping up my composure is a daily struggle. Rest assured. I lead a very normal life. Actually not much different from others. However, getting there is very exhausting.

Others usually perceive me as nervous, “over-knowledgable,” opinionated, a bad listener and very talkative. But they also acknowledge my creativity, my seemingly never-ending curiosity, my level of information and my ability to be analytical.

So I guess I am normal after all, just a bit different from the rest.

Stressful finance chaos

Studies undertaken in 2019 not only found that more and more women are diagnosed with ADHD but also concluded that having ADHD profoundly impacts how successful women are in dealing with “money” issues.

This is not to say that today more women suffer from ADHD. ADHD was mainly assigned to male children. One reason could be that ADHD behaviour in men and women is profoundly different.

Gender bias may play a pivotal role in the misdiagnosis and underdiagnosis of ADHD in women and girls. Some of the characteristics of ADHD are being inattentive, shy, or impulsive. However, for a long time, this was viewed as personality traits rather than symptoms when they occur in girls and women.

Moreover, 80% of women say that money problems caused by their ADHD lead to anxiety. Only 70% of men with ADHD are worried about their financial situation. It is also likely that men with ADHD often show signs of optimism bias when it comes to investing, and women with ADHD instead refuse to get involved with personal finance altogether.

ADHD impacts money management in several ways. For one, someone with ADHD often lacks “‘executive functions”. To be more precise, the kind of thinking skills like planning, working memory, and, most importantly, inhibiting our behaviours.

Women with ADHD indulge far above the female average in impulse spending. The reason is for someone with ADHD; planning is not really a forte. In short, because there is no plan, all shopping by someone with ADHD could be labelled impulse buying. Because someone with ADHD will just go and buy anything anytime without a real plan.

Unlike women who are compulsive shoppers to combat frustrations or emotional negligence. Women with ADHD are either on autopilot or attempting to soothe themselves.

The symptoms

ADHD has three presentations: inattentive, hyperactive/impulsive, or a combination of the two.

Research commissioned by Monzo reveals that a much higher percentage of women than men think their ADHD impacts their personal finances (72% versus 56%).

They have difficulty forgetting to pay bills on time, and avoiding dealing with personal finance issues often leads to increased debt, a substantial decrease in assets and poverty in old age.

Studies found that women with ADHD are more likely to impulse spend than men. 54% say they do this frequently (versus 40% of men). They also find it harder to stick to a budget – 59% identify this as a regular issue (versus 39% of men).

“Time blindness” can be another problem– the inability to sense time’s passing or to think about the future. This goes far beyond being always late but can feed into “impulse spending” as it makes financial planning difficult. Often, women with ADHD live only in the present.

“I struggle to think too far ahead and prefer to live in the moment.”

Nadia, diagnosed with ADHD at 24

Avoid the pitfalls

Money problems caused by ADHD seem to have a greater impact on women’s mental health than men’s. According to Professor Thomas Brown, there’s evidence that women with ADHD self-report higher levels of impairment in several areas of life than men, including money management. 

The fact is those who live by impulse will also deal with financial issues by impulse. So overspending and a lack of budgeting and finance planning/management is the leading cause of poverty for women with ADHD.

“I make sure my budget spreadsheet is decked out in pretty colours and I have an aesthetically pleasing photo tied to each savings goal, like a mini vision board.” 

Hanna diagnoses with ADHD

Just as adults with ADHD may struggle to plan ahead, they are having difficulty interpreting what their balance sheets are telling them.

Here are some trusted methods designed for women who have ADHD. Notice that there are no recipes. It’s about changing how you think, feel, and behave.

dopamine control

Contain the splurge

Make a timeline

For women with ADHD, it is helpful to organize money management into a timeline that shows financial tasks and how often they need to be done. Make a weekly, monthly and annual to-do list. Stick to it. You must step out of your comfort zone to build new habits. Do not procrastinate!

It also helps to note how long you think each task will take. Sometimes, seeing that money management tasks can be completed quickly or that they don’t have to be done often can help motivate people to accomplish some or all of them.

if You Blow it

Don`t give up! It is very typical for us with ADHD to get impatient, especially with ourselves. Don’t berate yourself when you make a mistake. If yelling at yourself were effective, wouldn’t you be perfect by now? Restart your plan and forget the past.

Less stress

There is a rather simple reason why women with ADHD don’t like to look at their balance sheets: It’s often not good news. Even though we know better intellectually, we still believe it will all work out — fingers crossed. The problem, however, is we skipped over the very first rule of money management: Money loves attention!

To give money the attention it needs, start by rethinking financial planning. The word financial planning raises hackles for many with ADHD; it elicits images of scarcity and rigidity.

But a financial plan is merely a projection of what you expect to receive, what you invest and how much you want to spend—nothing more and nothing less. And there is an additional benefit – stress and anxiety dissolve into thin air.

Editors Pick

Being neurodiverse, respectively being diagnosed with ADHD, does not mean one suffers from some sort of illness.

Striving for normality and keeping up composure is a daily struggle.

Studies undertaken in 2019 concluded that having ADHD profoundly impacts how successful women deal with “money” issues.

Someone with ADHD often lacks thinking skills like planning, working memory, and, most importantly, inhibiting behaviour.

The fact is those who live by impulse will also deal with financial issues by impulse. So overspending and a lack of budgeting and finance planning/management is the leading cause of poverty for women with ADHD.

Just as adults with ADHD may struggle to plan ahead, they are having difficulty interpreting what their balance sheets are telling them.

Create a weekly/monthly/annual to-do list. Stick to the plan, form habits and do not procrastinate.

The fact is, women with ADHD don’t like to look at their finances. The problem, however is: Money Loves Attention!