ADHD and the “Money tax”
This is a longer version of the article I wrote for the Independent, published on 1 June 2026: I have ADHD: This is the unspoken tax we face and what to do about it.
Women, money and ADHD
Women are increasingly being diagnosed with ADHD later in life, including myself when I was 56 years old. We often self-describe as being “bad with money”, “forgetful” or “disorganised”. In fact, the so-called “ADHD tax” has cost women hundreds or thousands of pounds, even for those who are very financially literate. A study by YouGov in 2024 revealed that those of us with ADHD incurred an average loss of £1,600 a year compared with the general population.
Missed deadlines, forgotten cancellations and auto-renewals can quietly add up. What was previously seen as being “busy” or “distracted” can result in significant and avoidable losses.
When money experts get things wrong due to ADHD
Even money experts can fall foul of the “ADHD tax”. I have lost hundreds of pounds in ways that now make sense! For example, I have signed up for “free trials” and then ended up paying for months of unwanted subscription. This was due to not reading properly or missing the fact that I had replied to a “no-reply” email address. I have even had two insurance policies running at one time! I usually get most or all of the money back in those instances, but that’s because I am a consumer rights expert and throw everything possible at getting it refunded! But most people with ADHD would not necessarily know how to do this.
I also lost out on hundreds from a TikTok video by not reading the small print about creator payments. Amongst numerous videos not paying out, one video got over half a million views and should have made me hundreds of pounds but I earned nothing, simply because it was 59.5 seconds long, not the required 60 seconds. It was only when ADHD visibility, money and business coach Maddy Alexander-Grout pointed it out that I realised what I’d missed because I hadn’t read the very clear six bullet points properly!
Maddy well knows the financial cost of having ADHD.
When ADHD causes debt issues
She struggled with spending addiction from the age of 15, when her parents divorced. At university she signed up for six credit cards, two overdrafts, two loans, with a total credit limit of £65,000. She started to ignore the monthly statements. “One day there was a bailiff at my door and although my mum was cross about the debt and wasn’t going to bail me out, she helped with a budgeting plan and I paid off all the debts in five years.”
She has often been hit by the “tax”, including four parking tickets in a week because she forgot to update her temporary parking permit, double booking or forgetting gigs for which she bought tickets, buying 24 pairs of the same earrings, not refrigerating Turmeric shots… It even affected her first business which was doing well until Covid hit but could not claim on insurance because she had not properly understood the cover provided.
The psychology of why women with ADHD can struggle with money
ADHDers often run out of time to shop around for renewals. Clinical Psychologist and Host of Psychology Actually Dr Marianne Trent, says that this is because future consequences can feel psychologically distant and to avoid that people may use “affective forecasting”. She explains “This is where we assume that we will have more time or patience for a job or task in future, which of course when the time comes usually isn’t true!”
The “ADHD Tax” can crop up in a variety of ways, from not checking toll routes before you set off, forgetting to cancel recurring subscriptions and running out of time to shopping around for cheaper insurance products. Clinical Psychologist and Host of Psychology Actually Dr Marianne Trent says “Those with ADHD can often suffer ‘decision fatigue’, where the overwhelm of too many choices or not having the necessary structure or strategies mean people are more likely to disengage.” She continues “Impulsivity and an optimism bias for ‘earning more next month’ or ‘definitely planning on remembering to come back and search for a better deal’ can mean that someone with ADHD pays higher fees for longer.”
She says that future consequences can feel psychologically distant and those with ADHD can assume that they have more time or patience for a job or task in future, which of course when the time comes usually isn’t true!
How to help yourself regarding money if you have ADHD
Maddy focuses on helping neurodivergents with their money. Her book Mad About Money* shares tips about navigating life and finances with ADHD. She says “I know what it’s like to struggle. I’ve been through spending addiction, homelessness, job losses and an ADHD diagnosis that finally made sense of the chaos.”
When it comes to strategies to support neurodivergents manage their finances, small sustainable changes beat overhauling everything at once. Maddy recommends:
- Set as many alarms as you need
- Use a Fitbit or phone for reminders
- Sticky notes
- Make things visual
- Put important bills/fines on a clear desk in your eyeline, so you can’t ignore them
- Use “pots” on your online bank account
- Have a dedicated “what if” fund and make automatic weekly transfers
Maddy has pots for everything “including an ice cream fund”.
She also says do not be hard on yourself, money habits do not reflect your self-worth. Dr Trent backs this advice saying “It’s really important to try and reduce any shame you might feel for being affected in this way. It can be helpful to chunk things down into much smaller chunks. So if searching for insurance quotes fills you with dread or panic don’t aim to do it all in one sitting – maybe just have a 5 minute hunt to start with then set a phone or email reminder to support you actually coming back to finish the task.”
She also advises not being hard on yourself. Dr Trent concurs:
It’s really important to try and reduce any shame you might feel for being affected in this way. It can be helpful to chunk things into much smaller ones. So, if searching for insurance quotes fills you with dread or panic, don’t aim to do it all in one sitting – maybe just have a 5 minute hunt to start with then set a phone or email reminder to support you actually coming back to finish the job. You can build in rewards for yourself, too, when you tick off mundane tasks.”
She adds:
Personally I love the ideas from Atomic Habits whereby we stack habits so that they become paired associations. You could even build in rewards for yourself when you tick off mundane tasks – for example, when I’ve sorted my car tax renewal then I can go for a sauna / bike ride / play that game I love – whatever floats your boat!”
Reframe how we see money when we have ADHD
For those of us diagnosed late, it explains a lot. We aren’t “bad with money” or continually forgetting things, our brains are just overwhelmed and overstimulated with “stuff”! It’s important for us to reframe how we see our “mistakes”. Recognising a pattern and putting measures in place to help is the first step to reducing that “ADHD tax” bill!
It’s important for us to reframe how we see our “mistakes”. Recognising a pattern and putting measures in place to help us is the first step.
Reading from Mad about Money
This is a TikTok video of me reading a section from Mad about Money:
@thecomplainingcow @Maddy Alexander-Grout My friend (sometimes) wrote a book called Mad About Money- Managing finances and life with ADHD. And it’s got a f*ck glossary. Which is my favorite bit. If you have ADHD this book is for you, people with ADHD struggle with money for many reasons. But she talks about spending addiction , life, business all sorts of things. She has also got an audio book version coming soon! #adhdmoney #moneysaving #adhd #moneytipsandtricks #debt
