For some single parents, financial management can be difficult. If you’re a single parent and money is tight, create a plan of action to maintain and secure financial peace of mind for you and your children by following these general tips:
Tip #1: Set a Budget and Stick to It
Realize that you are heading a one-income home. Set a realistic budget and make sure you follow it closely. Make a list of priorities that may include:
- Mortgage/rent and utilities
- Household expenses
- Child care
- Vehicle expense
- Savings
- Insurance
Depending on your income, you may not be able to save or splurge like a two-parent home. Shop around to find the best deals. Also, see if you can find neighboring stay-at-home parents who might be willing to act as day-care providers, or try going to ChildCareAware to find more options.
Write down all income that comes in, and note what goes out, so you know where you can cut back. Make sure that you are living within the means that your budget provides.
Tip #2: Learn to Say No to Your Children
Parents generally desire to see their children content, but children have many needs that must always come before wants. If you are a newly single parent, saying no may be difficult for you. Learn to compromise with your children by allowing them occasional personal treats over frequent ones.
To help the family cut back on spending, have an honest discussion with your children if they are old enough to understand the family’s financial situation. If children are equipped with the responsibility and capacity to separate their needs from their desires, then when they come to you with a request, it will probably be a need.
Tip #3: Ask for Help When You Need It
Do not be too proud to ask for help if you find yourself in a tight situation. Borrowing or asking for help is better than falling behind on bills. Sometimes the biggest problem is not the finances, but stress from worrying about the finances.
Family members and friends may be good resources for help with babysitting and providing extra money to make ends meet. Other networks and associations can also help to give you more of a buffer, so that all of your assistance does not come from one particular place.
Networks such as Parents Without Partners exist to help other single parents. Some neighborhood associations and churches also create networks and groups made up of single parents who can offer support.
Tip #4: Look for Affordable Housing
Make sure that you can afford to live where you choose to live. If you are newly single and find that you must downsize, instead of keeping the home that you once shared with your partner or spouse, it is better to do so than to risk the financial security of your family. Try finding a roommate to avoid downsizing if you really do not want, or can’t, sell your home. However, do not attempt to maintain dual-income housing if you cannot afford it.
If you receive government assistance or have low income, you may be eligible to receive housing assistance. Contact USA.gov for more information.
Tip #5: Scrutinize and Cut Back on Expenses
Save money by checking out free books and videos from your local library. Also try coupon clipping for grocery expenses. You can find savings by grabbing a daily or Sunday paper and clipping away for your regular grocery needs. Accept hand-me-down clothes from family and friends for your growing child, and shop at thrift stores for work clothes for yourself if possible. Try to purchase clothes that can be washed at home to avoid dry cleaning bills.
Tip #6: Manage Your Legal Matters Wisely
Look out for tax breaks. As a single and working parent, you may qualify for child-care tax breaks. Check out the Internal Revenue Service website for more information. If your ex-spouse or partner owes you support but is not willing to provide financially for you and your children, know your legal rights when demanding child and spousal support. Contact your state’s attorney general or the United States Department of Justice for more information.
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