Supporting Neurodivergent People in Personal Finance

People with learning disabilities are part of a neurodiverse community, which refers to the diversity and variation of cognitive functioning in people. Some learning disabilities are dysgraphia, dyscalculia, dyslexia, language processing disorder, auditory processing disorder, visual perceptual/visual motor deficit and other nonverbal learning disabilities.

Financial tasks, such as budgeting, investing and calculating money, can be difficult — both doing and understanding the tasks. To help neurodivergent people, start with developing their independence on how living on their own will be like. Introduce what needs to be paid first — such as bills and mortgage/rent payments — and common financial concepts and terms — such as how credit card interest work or how quickly debt can accumulate over time if not paid off.

Learning disabilities run the gamut from trouble processing language and math to auditory and visual deficit disorders. Dysgraphia, dyscalculia, dyslexia, language processing disorder, auditory processing disorder, visual perceptual/visual motor deficit and nonverbal learning disabilities are the most common learning disabilities.

One in 10 people has dyslexia, which is the most common — and commonly known — learning disability and is a language-based learning disability. People who are dyslexic can have trouble reading, spelling, writing and with word recognition.

According to the International Dyslexia Association, dyslexia is defined as being “a specific learning disability that is neurobiological in origin. It is characterized by difficulties with accurate and/or fluent word recognition and by poor spelling and decoding abilities. These difficulties typically result from a deficit in the phonological component of language that is often unexpected in relation to other cognitive abilities and the provision of effective classroom instruction. Secondary consequences may include problems in reading comprehension and reduced reading experience that can impede the growth of vocabulary and background knowledge.”

Another type of learning disability is dysgraphia, which is when people have trouble with writing, such as handwriting, typing and spelling. People who have dysgraphia might write more slowly than others and have trouble expressing themselves via the written word. These challenges typically are caused by motor skills impairment as fine motor skills are necessary for holding writing tools and for writing and spacing letters properly.

But these challenges can affect the way a dyslexic or a dysgraphic understands their finances as well by paying more than something is worth, not understanding how credit works or incorrectly estimating the costs of groceries.

Dyscalculia refers to learning disabilities related to mathematics and people who have dyscalculia have a hard time reading clocks to tell time, counting money, seeing patterns, solving math in their heads and struggling with numbers and reasoning.

Learning disabilities like dyscalculia, dyslexia and dysgraphia can make managing finances and financial literacy difficult for people. Not understanding how to create (and track) a budget, overly relying on family members for help in financial matters, being victims of fraud and not understanding the terms of loans and credit can be real financial challenges for people who have learning disabilities.

According to the 2018 academic paper “Financial capability and functional financial literacy in young adults with developmental language disorder,” some young adults with developmental language disorder lack functional financial skills and require support to successfully manage their finances: “Compared to typically developing age matched peers, young people with developmental language disorder report less extensive engagement with financial products and lower competence in functional financial literacy.”

Managing finances can be one of the biggest challenges for neurodiverse people, especially for people who have dyscalculia. But, without learning the ins and outs of finances, you’ll be unable to budget effectively and live within your means, purchase a home, a car or save for retirement.

There are some key steps to take toward becoming a savvy financial consumer: understand your needs versus wants, build good money habits and better budgeting, learn how to save and invest, keep your money safe and embrace technology.

When looking at your finances holistically, the first step is to identify your needs and wants so you can build a budget. One effective tool to start thinking about how to divide up your money is to utilize Elizabeth Warren’s 50/30/20 rule, which stipulates that 50% of your net pay should go to your needs, 30% to wants and 20% to savings or paying off debt.

According to the National Disability Institute, people who have disabilities must build healthy money habits just like anyone else. Their financial toolkit has resources like worksheets for tracking weekly spending, building budgets, vetting banks and creating shopping lists. Tracking daily spending through a diary is a great way to help people with learning disabilities manage their finances by seeing how they spend their money.

Building a budget you can stick with helps people who have learning disabilities manage their money effectively. There are several options: a pen-on-paper budget, building a Excel or Google Sheets spreadsheet or using an app or software like Quicken’s Simplifi or Fudget. The pen-on-paper method is the cheapest option and apps typically have nominal costs. However, the best budget is the one you’ll stick with.

And while keeping cash in envelopes is a good option for people who don’t mind doing quick calculations, it might not be an effective budgeting tool for someone with a learning disability who has a hard time calculating quickly in their head.

The first thing you’ll want to do to create a cushion for yourself is open a savings account. Traditional savings accounts typically offer a very small level of return – around .05% – but transferring money out of your checking account is an effective way to save. One thing to consider here is which bank to open your account with – consider banks that offer a higher return on investment in terms of a higher interest rate.

According to the Consumer Finance Protection Bureau, neurodiverse individuals are at a higher risk for identity theft, financial exploitation, fraud or financial abuse.

“Financial exploitation is the illegal or improper use of an individual’s funds, property or assets. This can occur through fraud or scams, or when caregivers, family members, or others improperly use an individual’s financial resources,” the CFPB report said.

There are several ways people who have learning disabilities can secure their finances: using apps to track accounts, enabling biometrics on banking apps, appointing a trusted contact, monitoring their credit, avoiding scams and shredding important documents.

Saving for retirement is important for everyone. On average, a person needs 70% of their annual pre-retirement income for each year of retirement.

According to FINRA’s 2019 report “Investors in the United States: A Report of the National Financial Capability Study,” individual stocks (74%) and mutual funds (63%) are the most commonly owned investments. Notably, 61% of neurotypical investors let a professional choose their investments and 65% discuss investment options with a professional advisor. There are some other ways you can invest in your future, including utilizing your employer’s contributions, diversifying your portfolio and contributing extra to your retirement.

Assistive technology tools can help people who have learning disabilities process information in an innovative way. For example, auditory processors can listen to audiobooks rather than reading text.

Neurodiverse people who have writing challenges can dictate messages and emails into their phones and tablets or use support tools that read text aloud and proof written work. Browser extensions like Grammarly can help dyslexics and dysgraphics check text for spelling and grammar, as well as tone and syntax.

The challenges of becoming financially literate are twofold for neurodiverse people. Firstly, someone with a learning disability’s family might have handled their money for them in an effort to help them instead of educating them about how money works. Then, when it comes time to emancipate, neurodiverse young adults haven’t had as much experience as others in making change, sticking to a budget, paying bills on time and understanding cash flow.

Financial advisors might not understand the additional challenges that clients who have learning disabilities face. Neurodiverse clients might need additional check-ins and more consistent monitoring from financial advisors as well as very clear communications on the clients’ goals and risk tolerance.

Consumers should be wary of credit counseling services. According to the Federal Trade Commission, most reputable credit counseling companies are nonprofits, but they can be unscrupulous. Seek recommendations from friends or family for companies that offer in-person services, which typically are free, at military bases, credit unions, universities, housing authorities and U.S. Cooperative Extension branches.

One way to go about finding a financial advisor is to first locate your community’s independent living center through the Administration for Community Living’s Independent Living Services (ILS) Program to seek guidance prior to hiring a financial advisor. Make sure to meet with several advisors prior to hiring one. It might give you additional peace of mind to name a person as a trusted contact and have them accompany you to any financial meetings. They can act as an advocate on your behalf if needed.

There are federal and state programs to help neurodiverse individuals find and afford housing and assistive devices. Social Security Disability Insurance and Supplemental Security Income may help financially, and you can review eligibility requirements to see if you qualify.

The following resources can provide help in finding financial assistance for assistive devices and housing for people with disabilities:

• Administration for Community Living’s Independent Living Services (ILS) Program: Search for your local center for independent living here, which can assist with financial programs and advice.
• Alternative Financing Program for assistive technology: You may qualify for a federally- funded Alternative Financing Program that provides affordable financing to purchase assistive technology. Contact your local Department of Rehabilitation or visit the U.S. Department of Health and Human Services, Administration for Community Living website for details.
• Department of Housing and Urban Development’s (HUD) Housing Counseling office: For details about public housing and eligibility, call the HUD Housing Counseling Office at (800) 569-4287.
• Financial help for assistive devices: If you need help to pay for assistive devices, call the Administration for Community Living at (202) 401-4634 or visit the website or Administration for Community Living for support and information about assistive technology alternative financing programs.
• Governmental programs that help with bills: For assistance with medical bills, review state and federal programs available online.
• State and local housing resources: See what aid is available in your particular state or local government.

There are many resources available to help neurodiverse individuals understand financial matters, including topics on accessibility, ways to protect your identity and find legal services.

• Consumer Finance Protection Bureau: The Consumer Financial Protection Bureau is a U.S. government agency that makes sure banks, lenders and other financial companies treat people fairly. Submit a debt collector or bank complaint at cfpb.gov/complaint.
• Federal Trade Commission: The FTC has an online toolkit that includes a detailed guide for protecting your personal information with instructions and sample letters to help spot and respond to identity theft.
• Legal Services Corporation: Find out if you are eligible for legal assistance and services.
• MoneyGeek’s Compound Interest Calculator: This tool shows how savings and investments grow over time.
• National Foundation for Credit Counseling: For assistance with debt management, call the National Foundation for Credit Counseling toll-free at (800) 388-2227.
• Section 504 of the Rehabilitation Act: Section 504 is a civil rights law that prohibits discrimination against people who have disabilities and ensures equal access to education. Learn more about this law and what it covers.
• The Understood Podcast Network: Four podcasts featuring real talk and personal stories from people who learn and think differently, brought to you by Understood.org.