money Archives - Constellation ADHD Coaching

Gas prices are skyrocketing. Actually all prices are climbing. And with that, our spending is rising daily.

We know we should “tighten our belts” (btw, I hate that expression – tightening your belt sounds so uncomfortable), But, what do we do if ADHD makes it so, so difficult to gain control of our money? And how do we deal with the guilt, shame, and fear that we feel when we can’t do so?

Let’s first briefly discuss WHY ADHDers have trouble controlling spending. First, buying things can make us happy. It can be a high dopamine activity, which, since ADHDers have low dopamine levels, is something we might seek out. Until the guilt kicks in. But then, we may double down to feel good again – retail therapy, am I right? This treadmill, which I call the ADHD Spending Cycle, can be difficult to jump off of.

Add in the impulsivity of ADHD, which causes action before reflection. Now we have a killer recipe for overspending, feeling out of control, getting into hot water with credit card companies and the IRS…the list goes on and on.

So…what do we do?? How can ADHDers successfully get a grip on spending??

Usually, when using my B.E.A.S.T. Method of ADHD Friendly Financial Control, I would start with the B – background. However, I’d like us to gain some traction during this chaotic time. I’m going to suggest we jump to the E and A – emotions and actions/avoidance.

It’s time for you to be a detective.

For the next five days, take note of your spending, in terms of what you are doing, and how you are feeling. So, for example, last night I was scrolling the internet, and almost bought a new pair of pants. I was feeling excited to buy them for a trip I’m taking, but also was bored while watching TV. And I was lying around while doing it.

The more we can learn about what we are doing and feeling while spending, the more easily we can see patterns. This helps us to develop better strategies to counteract our actions.

So, in the example above, maybe I should be doing my crocheting while watching TV, instead of looking for things to buy. Also, making a list of what I need for my trip can guide me as to whether I actually need something new.

See how that works?

Also, I can use a few other strategies – ones that you might find useful, and can put into practice right now:

Build in a way to change your mind – Leave items in the cart for 48 hours; leave tags on so items can be returned easily.
Find other ways to curate items – Make an Amazon list; Pinterest; bookmarks.
Budget a small amount for discretionary spending – In other words, scratch that itch, but in a controlled way.

There are countless other ways to get a grip on spending, but their effectiveness relies on knowing what is driving it.

You may feel embarrassed, or fearful, when studying yourself. So I’m going to flip the script on this. You can feel PROUD that you are working on your spending patterns. And knowing the enemy, whether it’s impulsivity or dopamine chasing, makes you MORE POWERFUL.

You can do this! More strategies next time!!

PS – Here is a link to a spreadsheet to help you take note of your spending, actions, and emotions, including an example! https://digioh.com/em/33248/200393/47wv8xr54d?demail=(email)

The ADHD tax. Have you heard of it?

Due to executive function challenges, folks with ADHD can lack organizational skills, which can in turn cause them to forget to pay bills. Add time blindness to the mix – “Oh, that’s not due for ages! I’ll worry about it then!” – and working memory issues that impact planning actions, and you have a recipe for the additional costs for goods and services, including late fees and higher borrowing costs due to lowered credit scores, that is semi jokingly referred to as the ADHD tax.

There are other ADHD related factors that impact financial stability. These include impulsivity (buying without forethought), people pleasing (gifts one can’t afford, or purchases to help one fit in or impress), and of course, dopamine seeking (shopping can boost dopamine, tracking one’s money is boring). While these don’t directly lead to the ADHD tax, the less control one has over their money situation, the more apt they are to avoid dealing with it, leading to behaviors that cost us.

If the only impact of the ADHD tax was to our wallets, while it wouldn’t be great, we’d probably just chalk it up to another ADHD problem, like losing our keys or getting lost in a project, and pay the late fees. However, there is more to the ADHD tax than dollars and cents.

The emotional cost associated with feeling financially out of control – for which the ADHD tax is an indicator – can be quite large. According to a 2020 study, ““participants who had difficulty paying bills were more likely to have high levels of depressive symptoms and anxiety compared to those who did not have financial difficulty.” Per a TIAA February 2024 report, 42% of U.S. adults say that money negatively impacts mental health.

Add ADHD to this witch’s cauldron of financial instability, and the emotional impacts increase. Per a study published by The Guardian, “…those with ADHD are twice as likely (76%) to suffer from anxiety linked to their finances compared with the general population (38%).” And even more alarming, according to a 2020 study by Beauchaine et al, “financial distress is associated with fourfold higher risk of suicide among those with ADHD.”

Suddenly the ADHD tax isn’t even remotely amusing.

You may have experienced the negative emotions that accompany the ADHD tax. Feelings of shame and embarrassment are common. One can feel hopeless – why can’t I manage to pay my bills on time like everyone else? And there can be guilt too, especially if others are impacted. These emotions can become cyclical: shame and guilt leading to avoidance of financial monitoring, or the classic “retail therapy” prescription, which can lead to more spending, which starts the cycle all over again.

So what is one to do about this?

There will be those who tell you “just use a budget app.” They may even tout an ADHD friendly budgeting system. However, that app, without any further accommodations and awareness, will sit on the shelf, gathering dust, while the emotional and monetary costs increase.

There are accommodations that can help – autopay, an accountability buddy to keep you from avoiding the issue, dopamine boosting rewards (I’m a fan of the Money Meeting – complete with coffee and cookies – with myself, weekly). If there is avoidance happening, we can dip our toes in by just checking balances for a couple of weeks. If we can afford it, maybe a virtual bookkeeper would help.

But in order for any strategy to work, we need to understand what is driving our behavior. And we need to accept the differences in how ADHD brains work, so that we are willing to stop trying to manage our finances the neurotypical way.

And for this piece of advice…no charge.

Tag: money

Spending Control the ADHD Friendly Way!

The Emotional Cost of the ADHD Tax