Money Matters: Finances in Everyday Life of Adults with Attention-Deficit/Hyperactivity Disorder (ADHD)

A vast amount of research demonstrates that income inequality, socioeconomic status, financial stress, and/or changes in income affect our mental health, including a greater risk of depression, psychosis, and alcohol use. Within this context, it is crucial not to overlook the reverse: Our mental health can also have a significantly negative impact on financial capability and financial well-being, creating a vicious and potentially harmful cycle. Individuals with attention-deficit/hyperactivity disorder (ADHD) are particularly vulnerable in this regard due to an increased risk of developing ADHD with a lower parental income, while ADHD hampers financial capability and financial well-being. Indeed, research has shown that adults with ADHD often have lower monthly incomes and fewer savings and more frequently need financial support from parents or family than adults without ADHD. Additionally, adults ever diagnosed with ADHD are more likely to incur new arrears, have less knowledge of their own income, and face greater difficulties in setting long-term financial goals and comparing medical insurance plans than adults never diagnosed with ADHD. Furthermore, compared to their counterparts, adults with ADHD exhibit a decreased awareness of bill arrival and a higher tendency to make impulsive purchases. The aim of the present chapter is to elucidate the associations between personal finances and mental health, provide an overview of what financial capability entails, and examine the impact of ADHD on financial capability and financial well-being. Ultimately, several suggestions will be offered on how the vicious cycle between (parental) income, ADHD, and financial capability might be broken.