Studies reveal that having ADHD can lead to significant financial losses, often referred to as the ADHD 'tax'. Helen Dewdney, also known as The Complaining Cow, shares her personal experience and expert advice on mitigating these costs.
The Financial Impact of ADHD
Women are increasingly diagnosed with ADHD later in life, as happened to Dewdney at age 56. Many self-describe as being bad with money, forgetful, or disorganised. However, the ADHD tax imposes a considerable cost even on financially literate individuals. A YouGov study found that people with ADHD lose an average of £1,600 per year due to missed deadlines, forgotten cancellations, and auto-renewals.
Dewdney recounts her own mistakes: signing up for free trials and then paying for months of unwanted subscriptions, having two insurance policies simultaneously, and losing hundreds of pounds from a TikTok video because it was half a second too short for creator payments.
Real-Life Examples
Money and business coach Maddy Alexander-Grout, who specialises in neurodivergent finances, knows the cost firsthand. At 15, she developed a spending addiction after her parents' divorce. At university, she accumulated six credit cards, two overdrafts, and two loans, totalling £65,000 in credit. She ignored statements until a bailiff arrived. With her mother's help, she paid off all debts in five years.
Maddy has faced numerous ADHD tax hits: four parking tickets in a week for forgetting to update her permit, double-booking gigs, and buying 24 pairs of the same earrings. Her first business failed during Covid because she hadn't understood her insurance cover.
Psychological Reasons
Clinical psychologist Dr Marianne Trent explains that future consequences feel distant to those with ADHD, leading to 'affective forecasting'—assuming more time or patience later. Decision fatigue also plays a role, where too many choices cause disengagement. Impulsivity and optimism bias lead to paying higher fees for longer.
Strategies to Reduce the ADHD Tax
Maddy recommends small, sustainable changes:
- Set as many alarms as needed
- Use a Fitbit or phone for reminders
- Use sticky notes and make things visual
- Place important bills in clear sight
- Use online bank 'pots' for savings
- Have a 'what if' fund with automatic transfers
Maddy herself uses pots for everything, including an 'ice cream fund'. She advises not being hard on yourself. Dr Trent suggests reducing shame and breaking tasks into smaller chunks: for example, search for insurance quotes for just five minutes, then set a reminder to continue. Rewards for completing mundane tasks can also help.
Reframing Mistakes
For those diagnosed late, it explains a lot. We aren't 'bad with money'—our brains are overwhelmed. Recognising patterns and implementing measures is the first step to reducing the ADHD tax bill.
Helen Dewdney is consumer expert The Complaining Cow.
