The ADHD tax: paying the price of neurodiversity

This morning, I got a notification on my banking app: my teenage son had just spent £6 buying food before school. He’d forgotten to take his ADHD medication until the last minute that morning, and it wasn’t until he tumbled out of the car in an un-ironed shirt that he’d remembered he also hadn’t had breakfast. So he had to stop off at the shop for a nutritionally dubious alternative - the cost of which could be attributed to the so-called ADHD tax.

Attention Deficit Hyperactivity Disorder (ADHD) is a condition that affects an estimated 2.6 million people in the UK*. While it’s widely recognised for its impact on concentration and hyperactivity, there’s a hidden financial burden with ADHD - the so-called ADHD tax.

What is the ADHD tax?

It’s a term for the financial loss incurred by people with ADHD as a direct result of their neurodiversity. People with ADHD may not even be aware that they’re financially disadvantaged, but it seeps into several areas and can have a profound effect.

Impulsive spending: Impulsivity is a common symptom of ADHD and can lead to unplanned or unnecessary purchases. People may not be able to take the time to find the right product or service for them, leading them to spend more than is necessary or to have to spend more later getting what they actually need.

Late payment of bills: It can be hard for people with ADHD to do time-bound tasks or those that take organisation and focus. That means that they are more likely than neurotypical people to incur late fees and suffer financial penalties.

The cost of disorganisation: Like my son’s breakfast, lack of focus can cost you more. Buying another umbrella when there’s a perfectly good one at home but you didn’t check the weather. Getting a spare key cut because you’ve lost it - again. Taking a taxi to the appointment because you didn’t leave enough time for the bus. It all adds up.

Not getting deals: People with ADHD can find themselves outside the discounted period for a loan or service (like a phone contract or mortgage) without even realising. Or they may realise but not be able to maintain focus when comparing deals or get around to organising a new contract, and so end up paying higher costs.

Under-researching: It can take time and focus to make good investment choices. Not being able to focus may also mean people don’t read the full details of a product or service and end up paying more than expected. Some people with ADHD also have dyscalculia, so it may be harder for them to process what the numbers mean in real terms.

Challenges in getting qualifications: When studying, there’s a risk that some people with ADHD may not be able to complete coursework at the same pace as their peers or may struggle in an exam setting. There can also be extra costs such as tutoring or extended studying. Not being able to gain qualifications can affect the jobs that people get and lead to lifelong income loss.

Job-related losses: ADHD - especially when undiagnosed or unsupported - can create challenges in productivity at work. People with ADHD sometimes miss out on promotions as a result or find it more difficult to progress in their chosen career. It can even result in job loss or frequent job changes. All of this can reduce earning potential.

Outsourcing household tasks: Home and life management can be tricky for a lot of people, and especially those with ADHD. The cost of outsourcing these items may be a necessity but it all adds to the ADHD tax.

Medical costs: In the UK, ADHD diagnosis comes with a long waiting list. Some people resort to private healthcare, which of course has a substantial cost for both diagnosis and ongoing treatment. Medication and therapy can both be considered part of the ADHD tax.

It’s not just people with ADHD either. Executive function can become a problem for all kinds of people during their lives for various reasons, such as advanced age, a period of intense stress, bereavement or an illness. 

What can individuals do to avoid the ADHD tax?

Recognising the impact of the ADHD tax can be both validating and frustrating. If you have ADHD, it’s hard to fully mitigate the impact, but there are things you can do to help.

Make the robots work for you! Anything that takes over the job of focusing or remembering away from a human with ADHD is likely to be helpful. Automation is your friend. Use timers, notes, calendars, alarms and time-blocking apps.

Fidelity’s tools and calculators can help take the time and hard work out of financial planning. And if you can sign up to any quick-fire finance education, like our Workplace Workout, even better. We’re working with Plain Numbers to make any calculations easier to understand too.

Mobile finance apps, including Fidelity’s PlanViewer, can help to track investments without having to do anything, and you’re less likely to lose track of your pension if it’s right there in your pocket. Ditto budgeting apps.

You can also set up automated savings - meaning a certain amount could go into an ISA, pension or other savings vehicle automatically as soon as you get paid. You could find yourself saving every month without having to think about it. But remember, the value of investments can go down as well as up, so you may get back less than you invest.

Work in focused bursts followed by short breaks to maintain focus and avoid burnout. Intervals of 25 minutes followed by 5 minute breaks are used in the Pomodoro technique and you can download Pomodoro apps to time your activities. Build in lots of extra time to your deadlines and don’t over-promise or assume you ‘should’ be able to do it in a certain time just because others can.

Practice self-compassion: Recognise that ADHD can be challenging and it’s ok to seek help or use tools to improve your financial outcomes. During ADHD awareness month, it’s a good time to educate others about the effects of ADHD and what they can do to help support you.

*ADHD UK charity: https://adhduk.co.uk/about-adhd