Glossary: Compensatory Strategies
Compensatory Strategies for Personal Finance
In Everyday Terms:
Compensatory strategies are the clever workarounds and life hacks you create to help yourself manage challenges—whether it’s setting alarms for everything, using sticky notes all over your house, or relying on a friend to keep you accountable. It’s about finding ways to work with your brain instead of against it, turning potential struggles into manageable routines that help you stay on track and get things done.
Clinically Speaking:
Compensatory strategies refer to the adaptive techniques and tools individuals use to cope with cognitive, emotional, or executive function challenges. These strategies help individuals manage difficulties related to organization, memory, focus, and self-regulation. Commonly used by neurodivergent individuals—such as those with ADHD, autism, or executive dysfunction—compensatory strategies can include external reminders, structured routines, environmental modifications, and technology-based supports. While compensatory strategies do not "fix" underlying challenges, they provide practical ways to navigate daily life more effectively.
How Compensatory Strategies Affect Personal Finance
Managing money requires planning, organization, and consistency—skills that can be challenging for neurodivergent individuals. Compensatory strategies can provide structure and support to help individuals stay on top of their financial responsibilities and long-term goals.
Automating Financial Tasks
Using automatic bill payments, savings transfers, and budget tracking apps can help reduce the cognitive load of remembering due dates and managing finances manually. Automation acts as an external support system to prevent missed payments and late fees.
Breaking Financial Tasks into Smaller Steps
Large financial tasks—like budgeting, tax preparation, or debt repayment—can feel overwhelming. Breaking them into smaller, manageable steps can make them easier to tackle without triggering procrastination or avoidance.
Visual and Tactile Reminders
Using sticky notes, financial checklists, or setting reminders on a phone can provide regular prompts to stay engaged with financial goals. Visual cues help keep important financial tasks top of mind and reduce forgetfulness.
Creating “Financial Routines”
Establishing consistent routines, such as reviewing bank statements every Sunday or setting aside time monthly for budgeting, can help maintain financial organization. Routine-building helps bypass decision fatigue and reduces the mental effort required to stay financially responsible.
Accountability Partners
Working with a trusted friend, family member, or financial coach can provide motivation and support in managing finances. Having someone to check in with can add external accountability and make financial goals feel more achievable.
Compensatory strategies are essential tools for managing financial responsibilities in a way that works with individual strengths and challenges. By embracing personalized systems—whether it's automation, routines, or external support—individuals can gain confidence and control over their financial well-being while reducing stress and overwhelm.
