Everyone’s brain develops differently.
There has been a lot of discussion on neurodivergence and money in the past couple of years. And this is important because it brings different challenges to manage in terms of finances.
But what exactly is neurodivergence?
Simply put, it’s a word that describes when someone’s brain is wired and works differently to the majority of people. (People who aren’t neurodivergent are described as neurotypical.) Some common conditions you might hear associated with neurodivergence are ADHD, dyslexia, dyscalculia, social anxiety, learning disabilities and autism spectrum condition (ASC), among others.
These bring both strengths and challenges to many areas of life. But some aspects of managing finances can be especially difficult for neurodivergent people. For example, research done by YouGov and Monzo into ADHD showed that 58% of respondents reported spending impulsively, 51% struggled to budget, and 49% found saving money to be very difficult. They also found that the day-to-day struggle to manage money cost them around £1,600 per year.
Let’s take a look at 4 common challenges and how to overcome them.
- When starting out, acquiring financial knowledge can be challenging: there’s so much jargon, so many abbreviations, acronyms and conflicting advice from, often self-proclaimed, experts. One solution that one of our very own neurodivergent coaches has done themselves is to become your own expert by doing extensive research and reading. The more informed you are, the better financial decisions you’ll be able to make.
- For those who find themselves prone to procrastinating and struggle with being organised, paying bills on time can be a real challenge. This not only makes it easier to get into debt but can also harm your credit score. The key here is to automate any bills you have going out of your account. Set up direct debits for as many payments as you can so that it’s not on you to remember them – everything will just happen automatically.
- Impulse spending. This one is difficult enough at the best of times. But if you aren’t tracking your spending and planning for the future, this can really derail your finances. Don’t go shopping without a list – this will help you stick to what you need and not be tempted by other items. You can also follow the 24-hour rule (some people choose 48 hours, others even wait a week – do whatever works for you). This just means that if you want to buy something, you need to wait at least 24 hours to see if you really wanted it or if you were just tempted by it. This will give you time to remove yourself from the situation and allow that impulsive moment to pass.
- Not being able to save money. There are a couple of things you can do here. If you use a bank that offers roundups, enable this feature. This means you’ll be putting away money automatically without even having to think about it. Set up a direct debit for a certain amount of money to leave your current account every month and go into a high interest savings account. This is one less thing to remember to do, and your money will be earning interest as well. It’s a win-win!
What support is available?
With more and more people recognising that different communities have different needs, support is available. Financial institutions are increasingly willing and able to accommodate neurodiverse needs, for example by automating tasks such as bill payments and reminders. Or by providing innovative ways to categorise, visualise and manage spending, savings and investments.
Companies are also increasingly willing to make reasonable adjustments for neurodiversity, but this requires people to both be prepared to ask for accommodations, and know what works for them.
The neurodiverse community has a wide variety of needs and strengths, and that’s also true when it comes to money management. Personalised, 1-to-1 financial coaching helps neurodiverse people to understand and make the most of their unique strengths.
At Octopus Money, we work with clients across the spectrum to understand their financial situation and their individual challenges. For example, helping neurodiverse clients flesh out their desired financial outcomes and, crucially, what that means to them. We work together to create a realistic action plan suited specifically to that person. Regular face-to-face check-ins (via Zoom) really help clients stay on track and overcome any challenges or queries they may have encountered. This is particularly useful for anyone who is neurodivergent. You can book in to see how we can help here.
