Why Adults with ADHD Should Reconsider the Word “Budget”

For many people, the word "budget" evokes images of rigid rules, strict limits, and a constant feeling of restriction. This sentiment can be especially true for adults with ADHD. ADHD often makes it difficult to stick to structured routines or follow detailed plans, so the traditional idea of budgeting can feel overwhelming. In our recent podcast with personal finance expert Eryn Schultz, we dove into why she dislikes the word "budget" and how ADHD-friendly alternatives can make managing money less stressful.

Eryn, the founder of Her Personal Finance, shared that she avoids the term "budget". Instead, especially those in the ADHD community, can focus on a "spending plan" or "cash flow plan." These terms are less restrictive and more flexible, helping ADHD adults approach their finances with a growth mindset rather than a fear of doing something wrong.

For individuals with ADHD, the constant pressure to stick to a budget can feel like an impossible task. ADHD symptoms like impulsivity and difficulty with delayed gratification make it harder to follow a strict financial plan. Traditional budgets, which tend to focus on rigid categories and spending limits, may lead to frustration when unexpected expenses arise or when someone feels confined by the rules. Eryn's solution? Rethink the whole approach.

Instead of adhering to tight spending limits, Schultz recommends identifying your financial priorities and working around those. For example, if saving for retirement is important, set aside a fixed amount for savings before determining how much is left for discretionary spending. This gives individuals more flexibility to spend on what matters most to them while still achieving long-term financial goals.

ADHD adults can benefit from using technology to simplify financial tracking. Apps like Mint or YNAB (You Need A Budget) help by automatically categorizing transactions and providing a clear overview of cash flow without needing to log every purchase manually. This kind of automation reduces the burden of constant monitoring, a task that can be particularly difficult for those with ADHD.

Schultz's approach not only simplifies financial management but also promotes self-compassion. Adults with ADHD often feel like they're failing when they can’t stick to a budget. But by removing the negative connotations associated with traditional budgeting, Eryn offers a more ADHD-friendly path to financial health. A spending plan provides flexibility and allows for the realities of life—because, let’s face it, unexpected expenses happen, and it’s okay to adjust accordingly.