The ADHD Tax: Hidden Costs & How to Avoid (For Black Women)
Living with ADHD can be a daily challenge.
For Black women, these challenges can be magnified by societal pressures and systemic biases.
As a project/programme manager and the host of the Divine Enigma podcast on neurodivergence in the workplace, I've seen firsthand how ADHD can have a significant financial impact. This phenomenon, often referred to as the "ADHD Tax," includes the hidden costs that come from ADHD-related mistakes, such as late fees, overdraft charges, and other financial penalties.
Let's delve into what the ADHD Tax entails and explore strategies to minimise its impact.
Understanding the ADHD Tax
The ADHD Tax refers to the extra financial costs incurred due to the symptoms of ADHD. These can include:
Late Fees: forgetting to pay bills on time.
Overdraft Charges: Losing track of account balances.
Impulsive Spending: Making unplanned purchases.
Missed Opportunities: Missing offers and chances for promotions due to overwhelm.
This affected me not only as a woman with ADHD but also as a dyslexic woman. A time that comes to mind is when I could not find the address of a company I had a job interview with; I walked up and down the street, followed Google Maps, the building images, everything, and could not find the location! I lost that job opportunity due to my difficulties navigating directions.
These financial pitfalls can accumulate, creating a significant burden over time for ADHDers.
Unique Challenges for Black Women
Black women often face additional layers of complexity.
Cultural expectations and societal biases can exacerbate the stress of managing ADHD.
Particularly the strong black woman trope.
Being the eldest daughter (despite having an older sibling or brother(s), but still expected to take on the 'second mother' role)
And having to work twice as hard to prove their worthiness in business and the corporate world in comparison to their white counterparts and/or other minority groups.
The stigma associated with mental health in Black communities can also make it harder to seek help or talk openly about ADHD. Although, this is getting better and black people are becoming more open to therapy. With an increase of black therapists providing this service to their communities, black people are more happy to seek a therapist, and it is not being stigmatised as much.
I am still sceptical about therapy due to a recent court case I saw in the news. Ella Janneh, a black woman who received therapy, has filed a High Court case against her ex-therapist, Michael Lousada, accusing him of assault. This makes me question whether there are truly safe spaces for black women to get support. There is a lot of nuance around therapy being a place where you can let your guard down, and this is my personal opinion; for some, therapy is an extremely helpful tool to help express your feelings and emotions, but I’m still a bit unsure about it. Still, I digress, as we can have a whole blog post about this.
Strategies to Minimise the ADHD Tax
As a project/ programme manager, I use various tools and strategies to keep projects on track, and these can be adapted to manage personal finances effectively. Here are some tips to help minimise the ADHD Tax.
Set up automatic payments for recurring bills. This ensures that you always pay all due dates and avoid late fees. So key bills like rent, mortgage repayments, council tax, utility bills and broadband are always paid via direct debit. I have two separate bank accounts, one for payments (salary & contracts work, etc) and one for direct debits.
Pay yourself first. This is critical because people tend to think you need to pay your bills and other actions 1st, but you must pay yourself 1st as if you lost your job or something went wrong, you have invested in yourself and not others. It also takes a mindset shift, as I think as ADHDers, we tend to put others before ourselves, particularly more so as black women. This might be unconventional, and people might disagree with me, but I believe you should pay yourself 1st before your credit card debt. Yes! You might be in a season of debt; however, paying yourself less is better than paying yourself last; once you get to your goal of clearing your debt, you will have a better sense of achievement as you have savings and have also cleared the credit card debt.
Budget or have a spending strategy. I hate the word budget, so I rephrase it to spending strategy, and this means working out how much you are spending each month and looking at your finances each month. I have multiple accounts, and each one has a purpose. I also mix paper budgets with tech apps and spreadsheets, but find out what works for you and have a body double to help you.
Using Technology Budgeting Apps are really helpful like*:
I also use reminders or calendar alerts (Apple/Google Calendar) for bill payments and other financial deadlines. I also create visual cues. I have a whiteboard in my front room, which gives me visual cues on what actions I need to take, including my finances.
Access to Work Grants can provide you with free tools and access to an ADHD Coach. I am currently going through this process and will potentially put together a vlog/blog post on it. If people love this article and want to see me go through my access to work application, let me know, and I will put a vlog/blog post together.
I recently got into some credit card debt due to business expenses, holidays, etc., so I am heavily prioritising paying that back. At the same time, I’m building up an emergency savings pot for myself and my husband; however, I will pay first in the emergency savings (pot) and then pay more towards the debt.
I know I want to pay, for example, £100 per month towards my debt and then £50 per month towards my savings, so I will make higher payments towards my credit card debts and reduce my savings. Once I have cleared my debt, I will increase my savings overall to £150, as I have cleared my debt. I will also determine how long it will take me to clear my debt. For example, if my debt is £1000, I know it will take about 10 months to clear, paying £100 monthly. Also, if I get extra money from contract work or self-employment, I make extra payments towards my debt. I will also consider that if there is interest to pay on the credit card, I will check for any balance transfer offers to reduce my debt as much as possible.
The target is to get 12 months worth of emergency savings to take my foot off the gas of working so hard and have a cushion to kick back and relax in case I lose my job or my husband loses his job; either one of us gets sick, or my business venues do not work out.
Living by Faith: A Pursuit of Unconventional Dreams
As a Christian, I pray for success in all areas of life. However, nobody knows tomorrow, so I continue striving to trust God to provide my daily bread. "The wise store up choice food and olive oil, but fools gulp theirs down."Proverbs 21:20 NIV
I live by that scripture, and it helps me not trust in the world but in God. I know I need to be a good steward of the things that God has blessed me with.
One of my goals is to be a homeowner, but on my OWN terms, I want to be essentially debt-free within ten years (no mortgage) and live a nomadic lifestyle. I aim to have two children, despite being 40 years old, and have my children homeschooled and learn about the world with my husband. This might seem impossible to others, but it's what I dream of, and I hope, God willing, it will happen. I know others may have different personal religious beliefs and spiritual doctrines. Still, no matter how hard life can get, it is important to be hopeful and imagine a better future for yourself rooted in your personal beliefs.
The 48-hour rule
I am naturally impulsive, and one method that has worked for me is the 48-hour rule. This rule states that if I want to buy a product or service, I'm still determining whether I want or need it. I will wait 48 hours, and if after 48 hours I'm still thinking about it, I will purchase it.
This happens typically when online shopping, for example, leaving items in the virtual basket for the next 48 hours before I decide to purchase them.
If not, There is another method that I believe Martin Lewis uses.
Do you need it? And can you afford it?
Do you want it? And can you afford it?
Do you want it? And can't afford it?
Or do you need it? And I can't afford it.
These are the questions you need to ask yourself and be honest!
Building Routines
Schedule a specific time each week to review your finances. Make it a routine to review your budget, pay bills, and assess your financial health.
Accountability Partner: Find a trusted friend or family member to be your accountability partner. They can remind you of upcoming payments and help you stay on track.
I use the body doubling sessions with ADHD babes on Sundays; however, right now, I need to find an accountability buddy, so please holla at me, as I need a friend.
Morning Rituals
Incorporate a quick financial review into your morning routine, like checking your account balances and upcoming payments. I check my account daily in the morning and afternoon to ensure my bills are paid.
Seek Support
Financial Advisor
Consider working with a financial advisor who understands ADHD and can provide personalised strategies. This can be hard to find; however, here is a link to accredited financial advisors in the UK: Unbiased
Ask if they understand and if they can support you with your ADHD. Also, Karen Burke, who works with ADHD Babes, can help you manage your finances. Contact ADHD Babes for more information.
Self-Compassion and Advocacy
Understand that mistakes happen and forgive yourself when they do. Use them as learning opportunities rather than sources of self-criticism.
Don't hesitate to call your bank or service provider if you incur a late fee or overdraft charge. Explain your situation and ask if they can waive the fee, and they sometimes do. Also, if you forgot to cancel a subscription service when the first month was free, contact the company for a refund.
Conclusion
The ADHD Tax can be a significant burden, but with the right strategies, it can be minimised. For black women, it's essential to acknowledge the unique challenges faced and leverage resources and community support by automating finances, using technology, creating visual cues, building routines, seeking support, and practising self-compassion.
Coming soon! I will be working with the Black dyspraxic Tumi Sotire on Overcoming the Black Neurodivergent tax: Financial Toolkit.
If it interests you, click the link to join the waitlist .
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* Although this article contains affiliate links, this doesn’t affect my opinions on the tools I have recommended!