ADHD Symptoms and Financial Distress[Behavioral problems and competencies reported by parents of normal and disturbed children aged four through sixteen]

We examine the effect of attention-deficit/hyperactivity disorder (ADHD) on individual-level financial distress. ADHD is the most common mental disorder among children and is characterized by behaviors such as inattention, hyperactivity, and impulsiveness that interfere with school and home life. In a representative panel, we find that individuals with more severe ADHD symptoms during childhood have more difficulty paying bills and are more likely to be delinquent on bill payments in adulthood. Further, those with more severe symptoms are less likely to have precautionary savings and more likely to have to delay buying necessities. These effects exist across the full range of ADHD symptom scores and are not driven by the most severe cases of ADHD; this is consistent with recent evidence that ADHD symptoms occur on a continuum. Preliminary evidence suggests that medication for behavioral issues may mitigate the effect of ADHD symptoms on financial distress.