T
he cost of raising kids is steadily increasing, according to the US Department of Agriculture. Today, it costs parents approximately $12,980 per year for each child, which can be challenging even in two-parent households. But managing these costs can be especially difficult for single parents who don't benefit from shared housing costs, among many other shared expenses. Even single parents who co-parent or receive child support or support from others can find it a struggle to make ends meet. If you previously parented in a two-parent household and are new to single parenthood, this financial change can be a real shock. Fortunately, there are several ways to stretch your money further through careful budgeting, cutting costs, and seeking opportunities for financial assistance.
Start a Budget The starting point to achieving financial security is creating a budget so you can see where all of your money is going. There are many budget apps available online and for phones that track and help in planning how much to spend on different things based on your income and goals. Or you can just keep track with paper and a pen or on a computer spreadsheet. To begin budgeting, calculate your total income for the month based on 4.3 weeks in a month. This may be more difficult if you have inconsistent income, in which case, just do your best to find the average, or better yet, budget for the low side. Write down your monthly net income, which is your total income after taxes and other costs, such as medical insurance, are deducted. Be sure to include child support payments as part of your total income if you are receiving child support as well. Next, write down all of your regular expenses. Separate essentials like housing, utilities, health care, and groceries from non-essentials like subscription services. Don't forget to account for irregular costs for extras like gifts or vacations, as well as emergencies such as medical costs or car repairs.
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Now subtract your expenses from your income. If there is any income left over, congratulations! That means you're currently living within your means and can put the extra into savings. If the result is negative, however, you'll need to make adjustments to your budget to avoid going into debt or always living from paycheck to paycheck. May/June 2021 Pocono Family Magazine © | 43
