Glossary: Working Memory Deficits
Working Memory Deficits & Money
In everyday terms:
Working memory deficits are like having a mental sticky note that keeps falling off. You try to hold onto thoughts, tasks, or instructions, but they slip away before you can act on them. It’s that feeling of walking into a room and forgetting why you’re there, or starting something and getting distracted before you finish. Keeping track of multiple things at once—whether it’s your to-do list, conversations, or even where you put your keys—can feel frustrating and exhausting.
Clinically speaking:
Working memory deficits refer to difficulties with temporarily storing and managing information needed to complete tasks. Working memory is a core executive function that allows individuals to hold and manipulate information over short periods. Deficits in working memory are common in conditions such as ADHD, traumatic brain injuries, and learning disabilities, leading to challenges with following multi-step directions, staying organized, and completing tasks that require sustained mental effort.
How Working Memory Deficits Affect Personal Finance
Managing finances requires keeping track of multiple details—budgets, bills, deadlines, and long-term plans—all of which can be challenging for individuals with working memory deficits. Forgetfulness, disorganization, and difficulty retaining financial information can lead to financial stress and setbacks.
Forgetting to Pay Bills on Time
Due dates for recurring bills, credit card payments, and subscription services can easily be forgotten, leading to late fees, service disruptions, and damage to credit scores. Without consistent reminders or external supports, keeping up with financial obligations can feel overwhelming.
Losing Track of Spending
Individuals with working memory deficits may struggle to remember recent purchases, leading to overspending or exceeding budget limits. This can result in surprise bank balances and difficulty tracking where money has gone.
Struggling to Follow Financial Plans
Budgeting and financial planning require the ability to hold onto and process various pieces of information at once, such as income, expenses, and savings goals. Working memory deficits can make it difficult to stick to a budget or follow through with financial strategies.
Impulse Purchases Due to Forgetfulness
Forgetting what items are already owned or what has been planned for in the budget can lead to unnecessary or duplicate purchases. This can result in clutter and financial waste over time.
Disorganized Financial Records
Keeping track of important financial documents—such as tax forms, receipts, and account statements—can be a challenge. Losing or misplacing paperwork can create issues during tax season or when trying to review financial progress.
Working memory deficits can make financial management challenging, but implementing external supports—such as automated reminders, written checklists, and budgeting apps—can help reduce the cognitive load. By creating consistent financial routines and using organizational tools, individuals can build more effective money management habits.
