ADHD Tax! Spoiler Alert: It sucks.
The dreaded ADHD tax. If you have ADHD, you’ve probably heard of this tax. If you haven’t, you better read this. Even if you have heard of this tax, you should keep reading.
Here’s the tax defined:
The term "ADHD tax" refers to the hidden costs, both financial and emotional, that individuals with ADHD incur due to their symptoms. These challenges are often linked to struggles with executive function, time management, and organization.
Here's a breakdown of the ADHD tax:
Financial costs
Late fees and penalties: Forgetting to pay bills, return library books, or cancel subscriptions on time can lead to significant financial penalties.
Impulsive spending: Difficulty with impulse control can lead to buying things that are not needed or going over credit card limits.
Wasted resources: This can include food spoiling due to forgotten groceries, or paying for subscriptions or memberships that are not used.
Higher interest rates: A lower credit score resulting from missed payments can lead to higher interest rates on loans and credit cards.
Lost income or job opportunities: Challenges with organization, time management, and focus can impact job performance and career advancement.
Emotional costs
Guilt and shame: Repeated financial or organizational mistakes can lead to feelings of guilt and shame.
Stress and anxiety: The constant struggle to manage finances and meet obligations can cause significant stress and anxiety.
Compromised relationships: Financial difficulties or forgetfulness can strain relationships with family, friends, or partners.
Poor self-esteem: The ongoing impact of ADHD symptoms can negatively affect self-esteem and confidence.
The ADHD tax is a very real experience for many individuals with ADHD, impacting their financial well-being and overall quality of life.
What should be highlighted is the low credit scores. Employers are legally allowed to discriminate against applicants based on credit records. Low scores equal higher interest rates. Higher interest rates and less job availability lead to more difficulty getting out of the hole, which is depressing. (It’s no wonder they say ADHD never walks alone- with all of this, it’d be a challenge to keep depression and anxiety away).
So, what’s to do about the ADHD tax?
1. Streamline and simplify your financial management
Automate payments: Set up automatic payments for bills and subscriptions to avoid late fees and missed payments.
This is the big one. When I’m doing the intake evaluation with people who have raging ADHD, they have surprisingly managed their finances quite well. They use Autopay so they can basically set it and forget it.
Declutter your documents: Switch to online statements and paperless billing whenever possible to reduce clutter and make it easier to locate important information.
Those doom piles help no one. My clients who still manage their bills via the US Postal Service are asking for trouble. Papers get lost.
Consolidate accounts: Minimize the number of bank accounts and credit cards you use to simplify tracking and avoid juggling multiple bills.
Create a structured environment: Organize your financial documents (physical and digital) in a safe, secure, and easily accessible place.
If you insist on old school, paper bill pay, make sure to have a system, and make sure this system work,s and you’ll work this system.
Limit distractions: Set up a quiet, dedicated space for managing your finances, and minimize distractions like social media and phone notifications.
· If you’re up for reading more about this, check this out: https://www.additudemag.com/adhd-tax-financial-wellness-money-problems/?srsltid=AfmBOopF-BzyWSnNRxmlMhOjtomJHEzMweunYu7t4z0gtclwo7Sygd_f
The way I get motivated to do my finances is by making it a game.
It’s me versus the man. The man wants my money in the form of interest and late payments. If I don’t give the man jack squat, I’m winning. And this is a winnable battle.
Then, for extra credit, I try to figure out how to get the most out of the man. I use the credit card points, the fuel points, the hotel points… but that’s the extra credit level. For more about gamification, check out: https://www.tiimoapp.com/resource-hub/gamification-adhd