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Taking care of a family is tough, not to mention an expensive job, especially if you’re raising kids on your own. While making ends meet can be challenging, there are numerous available financial resources for single parents that can help you save money while providing for your children’s needs.
Whether you’ve recently become a single mom or single dad or have been one for quite some time, our comprehensive guide aims to assist single parents in making financial responsibilities more manageable.
According to the Pew Research Center, a single-parent household is one where a sole adult is living with at least one child—be they biological, step, or foster—under 18 years old.
Over the decades, there’s been a rise of single-parent households, with the U.S., among 130 countries, having the highest rate of children living in single-parent homes.
23 percent of children under the age of 18 live with one parent, in contrast to Canada’s 15 percent and China’s 3 percent. That’s about 11 million households in the U.S. And, unlike in other countries, there’s less likelihood of U.S. children living under an extended family setup.
In 1984, Ronald Reagan proclaimed March 21 as National Single Parent Day to recognize single parents for the amount of effort, sacrifice, and devotion involved in raising children without a partner.
Single parents face a lot of stress and can often feel overwhelmed with different responsibilities, including caring for their children and keeping up with financial obligations. Some are faced with fewer opportunities to spend time with their children.
One of the most effective ways to save money as a single parent is knowing and having control of your personal finances, including your budget for different expenses and your debt.
Understanding how you spend your money will help you get a clearer picture of your financial health and create a sound financial plan. You can prioritize the essential expenditures, such as utilities and groceries, and limit unnecessary purchases.
When left unchecked, debt can throw your financial plans into disarray. Monitoring how much you owe takes a lot of time and hard work, but it’s essential as a single mom or single dad.
Here are some financial tips that can help you keep track of your debt:
Following the snowball method, write down all of your debts, including any loans or credit card bills, from smallest to largest.
From there, make the minimum payment for these debts, except for the one with the smallest balance; use any extra money you might have to pay off the smallest balance as quickly as possible. Do the same thing for the next debt with the smallest balance on the list.
When it comes to paying off debt, there are other options available. You can opt to pay off debts with the highest interest rates first, or, if you have some extra cash, focus on one debt and try to pay off more than the minimum payment needed.
If pen and paper isn’t your thing, try using apps that can help you manage your debts, such as Debt Manager and ChangEd.
Aside from being able to pay off debt, one way to take control of your finances as a single parent is to maintain a budget.
Yes, it can be difficult to stick to a budget, especially if you have to juggle a lot of financial obligations and living expenses, but doing so can help you pay off debt and have set aside for emergencies or even for a family vacation.
Find out how much income you receive every month, including child support. A good rule of thumb for budgeting is 50-30-20.
Credit card interest rates and fees can add to your debt. Try to avoid relying too much on credit cards when spending.
If you’re finding it difficult to manage your credit card debt, the National Foundation for Credit Counseling offers free or low-cost assistance from certified financial counselors.
You can go old school and follow the ever-reliable envelope system, or you can opt to use free or affordable apps or programs, such as Mint, and Trim, that’ll help save or keep track of your budget.
For single parents, it’s important to stay on top of your finances.
Make sure that you closely monitor all of your accounts and check for any fraud or incorrect charges that may set you back. Staying informed of your financial situation is one of the best ways to save money as a single parent
Yes, single moms and dads are entitled to a retirement plan.
See if your workplace has a retirement plan set up for its employees. If there’s none available, you can set up your own retirement account and automate the deposits, much like a 401 (k) or 403 (b).
Increasing personal net worth can help single parents meet their financial responsibilities.
Your net worth is the total of what you own including any investments and assets you might have, and subtracting all the debts and loans.
One way to increase your net worth is by setting up a savings account. You can start small—try saving up to 20 percent of your income. You can also start with as little as $25 per month. The important thing is being able to set extra money aside for rainy days.
Additionally, it pays to know about the tax benefits that you’re entitled to as a single parent.
Grants and scholarships are available for single parents who are trying to get or finish their education.
One of the best money-saving tips for single moms is availing of affordable or free insurance. This includes health, life, and disability insurance.
Medicaid is a low-to no-cost health insurance that’s provided by the state. Given that it’s state-administered, eligibility requirements may vary from state to state. However, with the Affordable Health Care Act, many states have since adopted an expanded Medicaid eligibility.
Life insurance, meanwhile, provides a guarantee that your children will get financial help should anything happen to you. It helps to check with your employer if your company has existing life insurance policies for its employees.
If there’s none in place, do your research before buying a life insurance. Find out how much you need. A good rule of thumb is to go for a life insurance policy that’s 10 times your annual income. Yes, it does seem like a huge investment, but the peace of mind in knowing that you’d be able to provide for your children’s needs even after passing away is worth it.
Life insurance, meanwhile, provides a guarantee that your children will get financial help should anything happen to you. It helps to check with your employer if your company has existing life insurance policies for its employees.
If there’s none in place, do your research before buying a life insurance. Find out how much you need. A good rule of thumb is to go for a life insurance policy that’s 10 times your annual income. Yes, it does seem like a huge investment, but the peace of mind in knowing that you’d be able to provide for your children’s needs even after passing away is worth it.
Temporary Assistance for Needy Families (TANF) is a federal block grant program offered by the U.S. Department of Health and Human Services that provides supplemental cash to single parent households, provided that they meet certain financial criteria.
To qualify for TANF, single parents with children under six years old must work or participate in job training for a minimum of 20 hours per week. Those with children older than six years old should work or train for at least 30 hours or more.
Several food programs are available for single parent households:
The Department of Housing and Urban Development (HUD) offers several housing programs for low-income families via Section 8 housing vouchers provided that they meet certain criteria.
Single moms who find it difficult to pay utility costs can apply for home energy assistance under the Low Income Home Energy Assistance Program (LIHEAP). They can also apply for the Weatherization Assistance Program if they need help for repairs to minimize energy costs at home.
Transportation can get very expensive, especially for single-parent households. The good news is there are a number of programs that can help fulfill your need for basic transportation.
Communication is a necessity, but high phone and internet bills can put you off. There are a number of providers that provide discounts for single-parent households.
Grocery shopping can take up a lot of your income if you’re not careful with your expenses. For single moms and dads out there, this is one of the most challenging things to do.
You want to strike a balance between being able to provide for your family without necessarily going over the budget. We’re sharing some of our favorite money saving tips for single moms and dads below:
There are a lot of things that a family needs, but determining which ones are most crucial definitely helps. To do this, ask yourself questions such as “What items should I always have on hand?” or “What essential grocery items can I buy in bulk?” Doing this will not only save you money but also trips to the store.
Having a grocery budget enables you to spend only on what you need and minimize purchases for things that aren’t as important.
Additionally, set a schedule for grocery shopping. Find a day in the week that works for you and try to stick to that time to avoid unnecessary spending and trips to the grocery.
Having a ton of unconsumed food translates to wasteful spending. By sticking to a budget and getting only what you need, you’ll not only minimize the amount of food waste you throw out but also cut unnecessary costs.
You can opt to buy frozen goods that you can store for a long while. When getting fresh produce and other perishable food items, it’s best to buy just enough for a week of meals.
Meal planning is also a great way to save money. By knowing what you’re going to be eating for the week, you’ll be able to better plan your grocery list. Plus, you’re more likely to minimize ordering take-outs, which can bloat your expenses.
We know that looking for coupons can be a time-consuming task, but it’ll be worth it because it can actually help you save money. Here at DontPayFull, you can easily get the latest free online coupons and promo codes from top retailers such as Amazon, Walmart, Target, and Best Buy.
While it might be tempting to appease yourself with a big purchase whenever you’re stressed, sad, or eager to keep up with the latest trends, it’s prudent to carefully think about every non-essential purchase first.
When gauging whether to buy something or not, go over your budget to see if you can afford it. If you can pay with cash to avoid accruing credit card debt.
Being a single parent has its fair share of challenges. It can be difficult to raise a family on your own while trying to meet all of your responsibilities. Fortunately, there are now several resources that are readily available for single-parent households.
While doing research can be time consuming, it is ultimately rewarding, especially when you can use these resources to provide for you and your family.
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