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Financial Tips for a Single Parent
The 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.
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.
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As a single parent, your income is what supports your family. If you don't earn enough to cover your expenses, you have three options to balance your budget. Cut your costs, increase your income, or get financial assistance (or a combination of all three).
Cut Costs
Food costs are a large part of most budgets. Although eating is a necessity, it's also a place where you can save a lot of money. As a single parent, finding the time and energy to grocery shop and cook meals at home can be challenging. But eating out, even fast food adds up quickly. So home-prepared meals are the most effective way to save money. Look for resources online for how to plan budget-friendly meals and prepare them ahead of time to make cooking quicker and easier.
Childcare is another high cost for single parents of young children. But there may be less expensive childcare options available. You could: • trade childcare with other parents who work on opposite schedules • find a trustworthy, stay-at-home parent open to watching your children for a lower cost • do a nanny share with other families • ask trusted family members or friends to help out, even if only part of the time to reduce daycare costs
Also, don't forget to deduct those child care costs on your annual federal tax return with the Child Care Tax Credit.
Another way to cut costs is to call your phone, cable, internet, or car insurance companies and try to negotiate a lower rate. Also, ask about cheaper options. You may be paying for options you don't really want or need. Be sure to comparison shop with other companies as well to see if they offer a better-priced plan. To cut cable costs, consider subscribing to one or two streaming services instead.
Increase your income
A quick way to increase your income is to start a side gig from home. Some ideas include turning a hobby into a paying job, teaching a specialized skill from home, tutoring, or watching another person's children.
Also, consider asking for a raise, job promotion, or look for a better paying job. If you're not sure whether you're being paid what you're worth, research the typical salary for your position or talk to others in the same role.
Ask your boss or HR department about ways you can increase your salary by taking on additional roles or furthering your education. Many certifications or classes can be completed online and count as job training.
If you don't have a college or technical degree, going back to school could lead to a higher-paying job in the long run. There are many scholarships and grants available, including ones specifically for single parents. Pell Grants are available to anyone in need, but they offer additional assistance to help support single moms. You can apply for Pell Grants through FAFSA (Free Application for Federal Student Aid) or at a
college financial aid office. The financial aid office at the school you want to attend can also help you to find other resources for your individual situation. Other organizations to check out are Raise the Nation and Soroptimist.
Get financial assistance
In addition to educational assistance, there are many programs and resources to help single parents trying to get by on smaller incomes. Benefits.gov shares resources, information, and links for financial assistance from the government in several areas.
WIC is a government program to help low-income women who are pregnant or nursing, and children under the age of five get adequate nutrition and healthcare. Sole providers, including single fathers, are also considered. Services include nutritious food provided either directly or through food vouchers, breastfeeding education and support, nutritional education and support, and referrals to other health and welfare services.
SNAP (Supplemental Nutrition Assistance Program) and TANF (Temporary Assistance for Needy Families) are two other programs available to help with food insecurity as well.
Some other federal programs for families with low income include Housing Choice Vouchers (Section 8) for housing assistance, Medicaid for health care, Child Care Assistance Program and Head Start, and the National School Lunch Program. Also, be sure to contact your state social services department for more local programs.
Another useful resource is Single Mother Grants. This website has a compiled list of grants available to help single parents, including financial support for housing, utilities, child care, medical costs, and more. You can search by state or by your specific needs.
Single Parents Alliance of America has information, programs, and resources available tailored specifically for single parents. It's free to become a member as long as you're a single parent and live in the US. It's also an excellent place to find current support for single parents, including an online community of other single-parent families.
Despite the unique challenges for single parents, the tips above can help reduce financial stress. This can improve your frame of mind so you can better enjoy the time spent with your kids and the many rewards of parenthood.
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Trending Vacation Habits in 2021
For many travelers itching to go on vacation, 2021 offers plenty of opportunities to get out and go. Whether it's heading to an outdoor escape or simply cozying up with loved ones while enjoying beautiful surroundings, vacation is on the minds of many.
To identify which trends will shape travel in the coming months, the 2021 Vrbo Trend Report includes data from its global vacation rental marketplace along with survey data from family travelers around the world.
When planning your next vacation, keep these trends in mind:
Finding Fresh Air
Heading to the great outdoors for adventure has long been a popular form of travel, and that desire will likely reach new heights in 2021. After a year of isolation and uncertainty, many families are seeking the serenity and escape of the wilderness.
According to the survey, four of the top five emerging destinations for 2021 are near lakes, rivers or streams where families can camp, hike and fish. At the top of the list, Emory, Texas is a mere 1-hour drive from Dallas where Lake Fork offers a top fishing spot for catching largemouth bass, and the area is also home to the A.C. McMillan African American Museum.
Also making the list are the Red River Gorge in Slade, Kentucky, which is near Mammoth Cave National Park, and Abermarle Sound, the gateway to North Carolina's legendary Outer Banks where bald eagles, peregrine falcons and other storied high-flyers are abundant.
