How neurodiversity impacts personal finances - Diana Clement

Neurodiversity can really affect personal finances. It’s a topic that needs to be brought out into the open, writes Diana Clement.

THREE KEY FACTS

• Approximately 10% of NZ’s population may be neurodiverse, facing financial challenges such as impulse spending, procrastination, and difficulties with complex financial documents.
• Technology like budgeting apps and legal frameworks such as the Responsible Lending Code offer crucial support.
• Banks are adapting by providing more inclusive services, like simplified documentation and sensory-friendly options, to better assist neurodiverse customers.

Diana Clement is a freelance journalist who has written a column for the Herald since 2004. Before that, she was personal finance editor for the Sunday Business (now The Business) newspaper in London.

OPINION

Neurodiversity can really affect personal finances. It’s a topic that needs to be brought out into the open. Too often people roll their eyes at others’ financial behaviour, which may be out of the latter’s control.

Attention deficit/hyperactivity disorder (ADHD) alone could affect 4-6% of New Zealand’s population. Add to that a range of other conditions including autism, dyspraxia and dyslexia, and 10% of the population may be neurodiverse.

Neurodiversity is not a one-size-fits-all. It is as broad as neurotypical. However, some of the issues that can arise for neurodiverse people include impulse spending, procrastination, a lack of focus, and struggling to interpret complex documentation such as terms and conditions for banking and insurance. There may be organisational and time management issues, or just a living for today approach to life.

Darrin Bull, chair of ADHD New Zealand, used a very simple analogy to explain how money personalities are accentuated by neurodiversity. He cites the example of one young man with autism, who is very rules-focused.

“He’s worked out that buying a cookie is just a waste of money. So he won’t do that. But someone who’s ADHD might buy 10 cookies.” As a result, members of the ADHD community sometimes get themselves into financial trouble.

Bull cited research that showed that adults with ADHD had greater problems with financial decisions than neurotypical people.

“That’s because their ADHD-ness can come through,” he said.

Technology is a great leveller for many neurodiverse people. Online banking, notifications, and controls and the transparency that budgeting apps such as PocketSmith provide can really help, said Bull.

New competitors that provide bank-like accounts such as Dosh, Debut and Revolut have budgeting and money management tools built in, which can be very helpful indeed for neurodiverse people.

The Responsible Lending Code and Credit Contracts and Consumer Finance Act 2003 are helping the community as well, said Bull. Buy Now Pay Later debt will also be subject to the responsible lending framework from September, which could be a real bonus for people with impulse control.

New Zealand’s banks recognise that some customers may not interact with their services as well as others. Martin King, general manager of customer assist at BNZ, is very aware of the issue of neurodiversity in banking.

The spending habits of neurodiverse people can be erratic, and that can lead to financial mismanagement and problematic debt. “But interestingly, it’s not a guarantee that says: ‘just because you’re ADHD, you’ll be rubbish with money’,” said King.

“Problematic debt is not a definite, so it’s not all people with ADHD have problematic debt, far from it. But there’s always going to be an inherent possibility that that’s going to occur.”

Some neurodiverse customers have sensory issues and now have the opportunity to hold on the phone with the music turned off. As branches are upgraded, there is more attention to lighting levels as well, said King.

Customers who are on the autism spectrum may struggle with human interaction and might prefer secure digital channels than in-person banking, said King. " That’s email and/or secure messaging.”

A growing area of focus is dyslexia, said King. “Generally in business, we love a set of terms and conditions and wordy product descriptions. But clearly that won’t work if you have difficulties with reading.

“It’s not an intelligence issue,” King added. “It is an ability to manage that information. How do you make it more accessible so they can engage in exactly the same way [as other customers]? There has been a real shift in the last five years to simpler writing.”

The bank has worked with its 5500 staff, many of whom may be neurodiverse or have children, siblings or partners who are, to better understand customers’ needs. “We’re increasing the awareness and removing the judgement. We have trained our teams and are constantly looking to uplift. Whether this is neurodiversity, whether it’s mental health, whether it’s problem gambling. How do [staff] spot those signs?

“We also recognise in all of this that we are not the experts. So whilst I’m really keen that my teams know more and do more, they’re not frontline caseworkers, [or] social workers or seeking to address wider societal problems.”

King said neurodiverse customers should not fear disclosing neurodiversity and approaching the bank to get help and support with any banking issues they face.