The ADHD Guide to Saving Money (2024)

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Savings Guide for Adults with ADHD

Most U.S. households have trouble putting money away — statistics show that Americans, on average, save only 1 to 2 percent of their family income — and those with ADHD have an even harder time saving for their future. Here’s an easy-to-followplan for finallygetting out of debt, lowering your big monthly bills, and spending less.

[How to Manage Your Money with ADHD]

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Live within Your Means

Your first goal is to live within your means — no more purchases on charge cards — while you pay off your consumer debt.

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Low-Interest Credit Cards

Transfer your consumer debt to zero-percent or low-interest credit cards.The lower the interest rate, the less you will pay each month. Typically, such offers are sent to customers with good credit, but you can also find them online. (Compare offers on www.creditcards.com and www.bankrate.com.)

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Try Online Banking

Set up automatic monthly payments through online banking. This will ensure that your zero-percent or low-interest credit card payment is never late. Log onto your bank’s website, open an account, and sign up for online bill paying. Then create monthly payments for other bills you can start paying automatically. These bills should include predictable charges, such as a mortgage payment, and payments to utility and phone companies.

Pay It Out

Add up the payments you have been making on your various higher-interest credit cardsand pay at least that total — preferably more — each month on your zero-percent credit card.

[Getting Your Finances Back on Track]

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Hand Over Your Credit Card

Keep your paid-off credit card in a safe but difficult-to-access place. You might give your card to a family member. Explain that you’ll ask for it only in case of an emergency. Another option is to place the card in your safety deposit box. Or — if you’re an extreme spender — try freezing the card in a block of ice in your freezer. By the time the ice melts, you will have figured out whether a prospective purchase is something you need or just something you want.

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Consider Refinancing

Consider refinancing your mortgage and car loans — typically, the biggest bills a family pays each month — at lower-interest rates. This will increase the amount of money you’ll be able to save.

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On the Rise

As you gradually pay off your consumer debt, your credit score will rise. This will make you eligible for lower interest rates on your mortgage. (Check your credit score at no cost through www.annualcreditreport.com.)

Pay It Off

Pay off your car loan with a home equity line of credit. Typically, home equity loans carry lower interest rates than car loans. The interest you pay each month is tax-deductible. Search for the lowest rates at www.bankrate.com and www.interest.com.

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Avoid Impulse Buys

Don’t place yourself in situations where you’re likely to make impulse purchases. For example, don’t wander through Barnes and Nobleon your lunch hour if you can’t resist magazines or Blu-rays. If you receive a lot of catalogs at home, cancel them through www.catalogchoice.org.

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Shop Smarter

Instead of “going to the mall” for fun, make a list of the items that you need and go only to the stores where you can find a good price on them. If online shopping is your weakness, make it more difficult to log on to shopping sites by not bookmarking them. Think of the Internet as a source of information, not a source of shopping entertainment.

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Put Yourself On a Spending Allowance

Calculate the amount that you can afford to spend each week on discretionary expenses, such as buying lunch, clothing, books, coffee, dinners out, movies, and so on. Go to the ATM on Friday; withdraw that amount, and don’t take out any more cash (or use a charge card) during the week.If you spend your money over the weekend, pack your lunches and don’t shop or eat outuntil the following Friday.

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Start Saving

Put money away while paying off the balance on your zero-percent or low-interest rate credit card. Figure out how much you’re saving from using this credit card, refinancing big-ticket bills, and sticking to a budget.Designate this amount for savings. Have your bank deposit that amount each week (studies show that people are more likely to save if the money is deposited automatically) into two savings accounts: Emergency fund and retirement fund.

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Start an Emergency Fund

Start an emergency fund, invested in a money market account.To find the highest-yielding rates, log on to www.bankrate.com or www.fidelity.com. You will have to fill out an application online, authorizing the money market company to transfer funds from your bank each month.

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Plan for Retirement

Start a retirement fund, invested in stocks, bonds, mutual funds, or cash.Log on to www.fidelity.comto explore mutual-fund options or www.schwab.comto set up a brokerage account. You’ll fill out an application online, and the company will take it from there, making sure that your bank transfers the funds electronically.If your company has a 401(k) plan, talk with the benefits department about having a portion of each paycheck deposited into the plan.

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A Little Goes a Long Way

Don’t tell yourself that saving just a little won’t make a difference. You’re developing a habit — the longer you save something each month, the more likely you will be to continue doing it. Increase your contributions to these accounts as you pay down your credit card debt and curb your spending habits. Congratulations! You are, finally, building wealth for your future.

FAQs

The ADHD Guide to Saving Money? ›

For short-term savings, you might try putting cash in a special jar or an envelope with a photo of whatever you are saving for glued to the outside, just as a place to hold it until you can get it to the bank. That way, every time you put money in the envelope, you'll be reminded of what you're working toward.

How to be financially stable with ADHD? ›

Managing Money and ADHD: Expenses and Goals

Keeping track of bank balances or expenses.
Organizing checks, bills, and important tax papers, and avoiding late payments.
Spending and large credit card balances.
Avoiding or procrastinating on paying bills or organizing files.
Saving for future needs or wants.

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What is the best budget method for ADHD? ›

One option is the “jam jar” method of tracking expenses. Under normal conditions this is a cash system: Cash is put into different jars or envelopes for each budget category (think gas, phone, electricity, water, etc.). It's visual and visceral, always a plus for those with ADHD.

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What is the money mindset of ADHD? ›

For those with ADHD, their money mindset may be influenced by impulsivity, a tendency to seek instant gratification, or feelings of overwhelm. Awareness and Acceptance: Start by acknowledging the challenges you face with money due to ADHD.

Why do ADHD people struggle with money? ›

Do people with ADHD have trouble managing money? Yes, adults with ADHD often face issues with managing money, as ADHD affects their planning, memory, focus, and impulse control. ADHDers may also favor immediate rewards (like an impulsive purchase) over the long-term gains of saving.

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How do ADHD people save money? ›

You might want to open a special bank account just for savings— or for one particular goal, if it's a big one—and have direct deposits automatically taken out of your paycheck. You might even choose not to have a savings debit card, to make sure you have to think twice before spending money from this account.

What is the ADHD tax? ›

The ADHD tax can best be described as an extra cost that people who have the disorder end up paying. Some examples include: Unintentionally missing credit card payments and being assessed penalties and higher interest rates. Compulsively charging and getting into expensive consumer debt.

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What is the 5 4 3 2 1 method ADHD? ›

Engaging your senses

The 5–4–3–2–1 grounding technique can be an effective way to bring your mind back to the present and reduce feelings of overwhelm. Focus on five things you can see, four you can touch, three you can hear, two you can smell, and one you can taste.

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What is the financial burden of ADHD? ›

Results: The total annual societal excess costs associated with ADHD were estimated at $19.4 billion among children ($6,799 per child) and $13.8 billion among adolescents ($8,349 per adolescent).

Who is the richest person with ADHD? ›

Bill Gates

With an estimated net worth of $92 billion, Gates has admitted to struggling with ADHD, saying he has always had difficulties concentrating and learning things. However, this did not stop him from reaching the most incredible professional heights in his life.

Why are people with ADHD so generous? ›

Basically, individuals with ADHD care about other people. They want to make the people around them happy, whether it's by sharing a lunch box or providing a shoulder to cry on. They make it a point to shed happiness and love for other people.

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Is overspending an ADHD trait? ›

Common ADHD-Related Problems

Some of the difficult or risky behaviors related to ADHD include: Trouble getting motivated or finishing tasks (either at work or at home) Being late or not following through on commitments, appointments, or responsibilities. Impulsive spending or overspending.

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Do people with ADHD love shopping? ›

An ADHD brain has fewer dopamine and serotonin receptors, which makes it harder to resist impulses like overspending on fun purchases that create fleeting feelings of happiness and pleasure. Keep in mind, however, that not all people with ADHD have trouble with impulsivity.

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Why is life so hard for people with ADHD? ›

The impulsive, fearless and chaotic behaviours typical of ADHD can make everyday activities exhausting and stressful. Although it can be difficult at times, it's important to remember that a child with ADHD cannot help their behaviour.

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Why are people with ADHD so good in a crisis? ›

Handling crises well – Green cites research that those with ADHD having more theta brain waves. These are the signals produced by the brain as it goes into sleep mode. Generally a crisis will snap those without ADHD into a brain overload condition. But the ADHD brain instead moves to a more normal mode.

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How to earn money with ADHD? ›

A willingness to take risks and think innovatively are two skills that some people with ADHD have. These attributes can help you succeed as your own boss or in fields requiring a lot of independence. Independent jobs that involve risk-taking can include: stockbroker.

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Can people with ADHD work in finance? ›

Whitney Valentine-Wafer has ADHD and never finished college. She's served as chief financial officer for several organizations and built a career as a nonprofit finance professional. Her journey includes employers like Creative Commons and the San Francisco Ballet.

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Are people with ADHD more likely to be in debt? ›

If you struggle with money management, you're not alone. A 2022 survey by Monzo in the UK showed that adults with ADHD are three times more likely to struggle with debt than their neurotypical friends. The same study showed that people with ADHD are four times as likely to impulsively spend.

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