How the brain busts the budget

By Liz Pulliam Weston

Kristen Autrey was diagnosed with clinical depression when she was 19. She battled the disease, and its effect on her finances, into her 20s.

"My depression would put me in a cycle of spending whenever a bout would come on," explained Autrey, now 30. Her spending might temporarily elevate her mood, but that effect would come to a crashing end "once I got the credit card statement."

Pati is 42 and rebuilding her credit for the third -- and, she hopes, final -- time. She recently discovered the forgetfulness and chronic disorganization that have plagued her all of her life are symptoms of attention-deficit (hyperactivity) disorder, or ADHD, for which she sought treatment a few months ago.

"I have made huge money mistakes in the past, including forgetting to pay credit cards (and) utility bills (and) ignoring important money matters," said Pati, who didn't want her last name used. She said she "only recently began filing papers so that I don't forget to file taxes on time or pay bills."

Joelle Greig couldn't explain to herself why she kept using her credit cards for unnecessary spending even though her husband was out of work and their debts were spiraling out of control. It took a bankruptcy, a divorce and the intervention of a friend before she discovered her lack of impulse control was another symptom of ADHD.

"I always thought there was something wrong with me," said Greig, 49. As she learned more about ADHD, "I was putting the pieces together."

Money and your brain

Financial troubles are known to trigger or exacerbate mental problems such as stress, anxiety and depression. What's less well known is that financial problems also can be a symptom of many common mental disorders:

• The manic or "high" phase of bipolar disorder, for example, is characterized by impulsive and often self-destructive behavior, which can include big shopping sprees, said Los Angeles psychiatrist Deborah Nadel.

• Overspending likewise can be an issue with depression, Nadel said, as those afflicted try to distract themselves and alleviate their distress with purchases. Feelings of hopelessness can make it difficult to plan for the future or to care whether the bills get paid.

• The symptoms that define ADHD -- impulsivity, inattentiveness and/or hyperactivity -- make finances a trial for many who have the disorder. Problems with planning and organizing stymie their attempts to deal with even simple money tasks, like bill paying, while lack of impulse control can result in big credit card debts, over-limit fees and bounced checks.

People who don't have mental disorders often have trouble understanding how overwhelming the symptoms can be, therapists say. The impulsivity experienced by many bipolar and ADHD patients, for example, means they're often unable to stop themselves once the thought occurs to buy something.

"There's no thinking about it," said psychotherapist Eileen Gallo, a co-author of two books about money. "It's just a response to go buy."

• Video: Diet linked to mental health

Without treatment, repeated attempts to control their finances often result in failure and feelings of worthlessness. Sally Palaian, a psychologist and coach for adults with ADHD, said her clients tend to have "tremendous problems with self-esteem."

"They have a brain that is wired differently than most of the world," Palaian said. "As adults they feel ill-equipped to function in the ordinary world of finances and have had many, many missed opportunities, or sometimes downright failures."

Continued: Diagnosis, treatment may help

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