ADHD and Money: How to Regain Control and Stop Overspending
Struggling with ADHD and money management? Learn proven strategies to stop overspending, control impulses, and build financial stability with your ADHD brain.
ADHD and Money: How to Regain Control and Stop Overspending
If you're reading this with a pile of unopened bills on your desk or feeling that familiar knot in your stomach after yet another "quick" online purchase or impulse buy, you're not alone. For adults with ADHD, managing money can feel like trying to catch water with your bare hands—no matter how hard you try, it seems to slip through your fingers.
The relationship between ADHD and money management isn't just about willpower or being "bad with money." Research shows that adults with ADHD are significantly more likely to experience financial difficulties, with studies indicating they face twice the rate of bankruptcy and credit problems compared to neurotypical adults. But here's the good news: understanding why your ADHD brain handles money differently is the first step toward building a financial system that actually works with your brain, not against it.
Why ADHD Affects Money Management and Spending Habits
Your spending patterns make perfect sense when you understand how ADHD affects the brain. Several key ADHD traits directly influence financial decisions:
Impulse control challenges: ADHD affects the brain's prefrontal cortex, which plays a key role in delaying gratification. When you see something you want, it can feel nearly impossible to resist that "quick online purchase" in the moment.
Dopamine-seeking behaviour: Shopping triggers a dopamine release, and since ADHD brains often have lower baseline dopamine levels, spending money can provide a temporary mood boost that feels irresistible.
Executive function differences: ADHD affects long-term planning, prioritisation adn organisation - skills that help with budgeting and financial decisions.
Strategies for ADHD Money Management
While ADHD presents unique financial challenges, there are specific strategies that work exceptionally well for ADHD brains. You can:
Automate Everything You Can
Set up automatic payments for all essential bills—rent, utilities, insurance, minimum credit card payments. This removes the mental load of remembering due dates and prevents late fees that can derail your budget. Also automate transfers to savings the moment you get paid, before you have a chance to spend that money elsewhere.
Use the "Spending Buckets" Method
Take advantage of ADHD apps and tools, to divide your money into separate accounts for different purposes: one for bills, one for daily expenses, and one for fun spending. Many banks offer multiple savings accounts at no cost, making this system easy to implement. When your "fun money" account is empty, you're done spending—no mental math required.
Create Strategic Spending Friction
Make impulse purchases slightly more difficult by removing saved payment information from online stores. Use apps that require extra confirmation steps before purchases. The few extra seconds this creates often provide just enough pause for your rational brain to kick in.
Build Your ADHD-Friendly Budget Visualisation
ADHD brains respond well to visual information, so make your budget impossible to ignore. Use colourful charts or budgeting apps like that show spending patterns graphically. Print your budget and post it somewhere you'll see it daily—your fridge or work-from-home desk.
Master the "Wishlist Strategy" for Impulse Control
When you want to buy something non-essential, add it to a wish-list instead of your cart. If you still want it after a week, then consider the purchase. This simple delay tactic short-circuits impulse buying while still allowing you to enjoy the "shopping" experience of browsing and saving items.
Build Accountability Without Shame
Share your financial goals with a trusted friend, family member, or ADHD coach. Join online communities like ADHD money management groups on Reddit or Facebook for peer support. Before making purchases, ask yourself: "Am I buying this to meet a real need, or to change how I feel?" If it's the latter, try a non-financial dopamine boost like going for a walk, calling a friend, or listening to your favourite playlist.
Set Short and Long Term Financial Goals
Having clear financial goals is an excellent strategy to help in reining in stressful purchases. Give yourself a goal to work towards by either developing short term and long term goals. Saving toward a particular target, whether it is to pay off a debt, save an emergency fund or save toward a vacation has the benefit of redirecting frivolous spending to more meaningful goals and much healthier ones as well.
Practice Self-awareness
Increasing self-awareness and mindfulness is essential for controlling impulsive spending. Be mindful of the feelings, ideas, and triggers that cause you to make rash purchases. Observe the circumstances, settings, or feelings that frequently precede impulsive purchases. You can use techniques to refocus your attention and make more deliberate decisions by identifying these tendencies. You should also strive to stay away from circumstances that increase your impulsivity whenever possible.
How to Manage Impulse from ADHD
Steer Clear of the Impulse.
Try to stay away from places like the mall, flea market, or your favourite internet merchant where you might make impulsive purchases. Consider whether you are more prone to make impulsive purchases in-person than online, and pick the method of buying that will save you the most money. Unsubscribe from email lists for retailers where you frequently spend too much money.
Make Plans for the Impulse.
Make a shopping list in advance of when you need to make a purchase. An online price guide can be used to assist with budgeting. Ask a family member or trusted friend to keep an eye on you during or after your shopping trip, and share your shopping list with them. When you go to the store, take only the money you need for the items on your list. You also can try taking a budget-conscious friend on your shopping trip.
Control your Impulses.
Credit cards make it easy to spend money impulsively. Instead of using your credit card, utilise cash if you have it available. Consider taking out a certain amount of money each week to spend. You can keep your credit cards in a secure location that is hard to get to in the meantime. You might think about asking a friend or partner you can trust to keep them.
Put a sticker or write a savings goal on your credit card. Every time you use your credit card, this sticker will remind you of your financial objectives, such as a particular present, a new outfit, or a trip. It may be possible to control your impulsivity in the moment by pausing to consider this objective.
Implement "Cooling Off" Periods for the Impulse
For larger purchases, set a mandatory 24-48 hour waiting period. Set a phone reminder, and when it goes off, reassess whether you still want the item. Often, the initial excitement will have passed, and you'll make a more rational decision.
When to Seek Professional Help for ADHD Financial Challenges and Spending
Needing help to get your finances back on track isn't a sign of weakness—it's a smart strategy. Consider professional support if you're experiencing:
Regular overdrafts despite efforts to budget
Growing debt that you can't seem to pay down
Money issues affecting your relationships
Feeling completely overwhelmed by your financial situation
Types of financial professionals who can help:
Financial counsellors provide free or low-cost guidance. Checkout Moneysmart Australia to learn more.
ADHD coaches who specialise in money management can teach you personalised systems and strategies
Financial planners help create long-term strategies for achieving your financial goals
Frequently Asked Questions
Why do people with ADHD overspend?
ADHD affects the brain's impulse control and dopamine regulation. Shopping provides an instant dopamine boost, making it harder to resist purchases and delay gratification.
What's the best budgeting method for ADHD?
The spending buckets method works best - divide money into separate accounts for needs, wants, and goals. This creates clear visual boundaries without complex tracking.
Should I use cash or cards with ADHD?
Cash is generally better for impulse control as it feels more "real" and creates natural spending limits. If you lose things often, use a debit card with daily limits.
When should I seek professional help for ADHD money problems?
If you're experiencing regular overdrafts, growing debt despite efforts to pay it down, or money issues affecting relationships, seek professional help.
Moving Forward: Your Next Steps
Dr. Thomas Brown, a clinical psychologist and avid ADHD researcher mentioned that “financial challenges in patients are not due to lack of knowledge, rather they are due to difficulty in consistently applying that knowledge in everyday decisions.”
Managing money with ADHD isn't about fighting your brain—it's about working with it. The same traits that create financial challenges can become strengths when channeled effectively through the right systems.
Start with one small change today. Maybe it's setting up a single automatic payment, or removing your credit card information from your favourite shopping site. Small, consistent actions compound into significant changes over time.
Remember: Your brain works differently and you simply need systems and strategies that work with your unique ADHD brain. With the right approach, financial stability and peace of mind are absolutely achievable.
If reading this made you think "this sounds like me," it might be time to explore whether ADHD is part of your story. Get started with us today.
Disclaimer: Nothing in this article constitutes financial advice or medical advice. The content is provided for general information and educational purposes only and does not consider individual personal circumstances. You should seek independent professional advice before making any financial or health-related decisions.