Managing finances can be especially challenging for adults with ADHD. Impulsivity, difficulty with organization, and forgetfulness can lead to struggles with budgeting, paying bills on time, or saving money. However, with the right strategies and tools, adults with ADHD can take control of their finances and develop healthier money habits. In this blog, we’ll explore practical ways to improve money management skills when living with ADHD.

How ADHD Affects Money Management

ADHD can impact financial habits in several ways, from impulsive spending to trouble keeping track of bills or managing long-term financial goals. The symptoms of ADHD, such as distractibility and poor organization, can make it harder to stay on top of day-to-day financial responsibilities.

Common Financial Challenges for Adults with ADHD

• Impulsive spending*: Adults with ADHD may make impulsive purchases without considering long-term consequences, leading to overspending.
• Difficulty budgeting*: Tracking expenses and sticking to a budget can be hard when ADHD causes disorganization or forgetfulness.
• Late bill payments*: Forgetting to pay bills on time is a common issue, which can result in late fees, penalties, and damage to credit scores.
• Trouble saving*: ADHD often makes it difficult to plan for the future, which can lead to challenges in saving money or building emergency funds.

Recognizing these challenges is key to developing a plan for better financial management.

1. Create a Simple, Automated Budget

For adults with ADHD, creating and sticking to a detailed budget can feel overwhelming. Simplifying your budget and automating as many aspects of it as possible can make it easier to manage your money without feeling stressed.

How to Create an ADHD-Friendly Budget

• Use a simple budgeting method*: Instead of creating a complex budget, try using a simple system like the 50/30/20 rule, where 50% of your income goes to needs (bills, rent, groceries), 30% goes to wants (entertainment, dining out), and 20% goes to savings or debt repayment.
• Track spending automatically*: Use budgeting apps like Mint, YNAB (You Need a Budget), or PocketGuard that automatically track your spending and categorize expenses for you. This reduces the need for manual tracking and helps you see where your money is going.
• Set up automatic payments*: Automate your bill payments whenever possible to ensure that they’re paid on time. This can help prevent late fees and reduce the stress of remembering multiple payment deadlines.

By simplifying your budget and automating payments, you can reduce financial stress and ensure that essential bills are covered.

2. Use Reminders and Alerts to Stay on Track

Forgetfulness is a common issue for adults with ADHD, especially when it comes to remembering to pay bills or stick to a budget. Setting up reminders and alerts can help you stay on top of your financial responsibilities.

Tips for Using Reminders and Alerts

• Set up bill payment reminders: Use digital reminders, such as phone alarms, calendar alerts, or notifications from budgeting apps, to remind you when bills are due.
• Enable low-balance alerts: Many banking apps allow you to set up alerts for when your account balance drops below a certain threshold. This can help you avoid overdrawing your account or overspending.
• Schedule monthly check-ins: Set a recurring reminder to review your finances at least once a month. This gives you the opportunity to assess your spending, track your savings, and adjust your budget as needed.

Reminders and alerts help you stay organized and prevent missed payments or overspending.

3. Curb Impulsive Spending

Impulsive spending can be a significant challenge for adults with ADHD, as the impulse to buy something on the spot can be hard to resist. Implementing strategies to manage impulsive spending can help you stay within your budget and avoid unnecessary purchases.

How to Manage Impulsive Spending

• Use the 24-hour rule*: When you feel the urge to make an impulsive purchase, wait 24 hours before buying. This gives you time to reconsider whether you really need or want the item.
• Limit online shopping temptations*: If online shopping is a common source of impulsive spending, consider removing stored credit card information from your favorite shopping sites or unsubscribing from promotional emails that encourage you to spend.
• Set spending limits*: Give yourself a spending limit for non-essential items each week or month. Once you’ve reached that limit, avoid making additional purchases until the next period.

Managing impulsive spending can help you save more and stay within your budget, reducing financial stress in the long term.

4. Build Savings with Automatic Transfers

Saving money can be difficult for adults with ADHD, especially when long-term financial goals feel distant or abstract. Automating your savings is an effective way to ensure that you’re putting money aside without needing to remember to do it manually.

How to Automate Savings

• Set up automatic transfers*: Schedule automatic transfers from your checking account to a savings account on payday or a set date each month. This ensures that a portion of your income goes toward savings without needing to think about it.
• Start small and increase gradually*: If saving a large amount feels overwhelming, start with a small, manageable amount (even $10 or $20 per month) and gradually increase it over time.
• Create specific savings goals*: Use savings accounts or apps that allow you to set up separate goals for different purposes, such as an emergency fund, vacation, or big purchase. This helps you stay motivated and track your progress.

Automating savings takes the pressure off manual planning and helps you build financial security over time.

5. Use Visual Tools to Track Progress

Visual tools can be especially helpful for adults with ADHD, as they make it easier to see your progress and stay motivated. Tracking your financial progress visually can help you stay on top of your goals and feel more in control of your money.

Visual Tools for Money Management

• Budgeting apps with visual dashboards*: Many budgeting apps offer visual representations of your spending, savings, and overall financial health. Use these dashboards to see how close you are to reaching your financial goals.
• Debt payoff trackers*: If you’re working on paying off debt, consider using a visual debt payoff tracker, such as a progress chart or coloring sheet, to see your progress. This can help motivate you to stay on track with payments.
• Savings goal trackers*: Use visual savings goal trackers to track your progress toward specific financial goals. This can be as simple as a graph or chart where you fill in progress each time you save.

Visual tools make abstract financial goals more tangible, helping you stay motivated and organized.

6. Seek Professional Financial Advice

If managing your finances feels overwhelming, seeking help from a financial professional can provide valuable guidance and support. A financial advisor, credit counselor, or coach who understands ADHD can help you create a personalized plan for managing your money more effectively.

How a Financial Professional Can Help

• Budgeting and debt repayment*: A financial advisor or coach can help you create a realistic budget, develop a debt repayment plan, and provide advice on managing expenses.
• Long-term financial planning*: If you’re struggling to plan for the future, a financial advisor can help you set long-term financial goals, such as saving for retirement, buying a home, or investing.
• Credit counseling*: If you’re dealing with debt, a credit counselor can help you negotiate with creditors, create a repayment plan, and improve your credit score.

Professional advice can provide the structure and guidance needed to manage your finances more effectively.

Conclusion

Managing money as an adult with ADHD can be challenging, but with the right strategies, it’s possible to take control of your finances and build better habits. By simplifying your budget, using reminders, curbing impulsive spending, and automating savings, you can improve your financial health and reduce stress. If needed, seeking advice from a financial professional can provide additional support and guidance to help you achieve your financial goals. Remember, small changes can lead to big improvements over time—start with manageable steps and build from there.