Financial Tips For Single Parents
Single parenting brings unique budgeting challenges.
The U.S. Department of Agriculture reports that it costs an estimated $241,080 for a middle-income couple to raise a child to age 18 – and many single parents shoulder that responsibility alone. Even with adequate child support, it’s smart to be proactive about financial matters as a single mom or dad.
Here are tips for daily financial decisions:
1.) Credit cards
While credit cards may seem like the obvious solution for filling the gap created by a second income, they’re also the number one way to spiral into a life of debt.
Single parenting is tough. While retail therapy may be a tempting salve to pull yourself out of a funk, the added debt you’ll incur will make you feel worse. Plan all shopping carefully and avoid impulse purchases.
Guilt causes many single parents to spoil their children, even when they can’t afford to. This is especially true during the holidays and for birthdays. Set designated amounts for gifts, and keep within the budget.
4.) Ask for Help
Check with River City Federal Credit Union for financial advice.
Emergencies happen. Whatever your income, it’s important to give yourself a safety net. Put aside a bit of money from each paycheck to set up an emergency fund for car repairs, broken refrigerators and other unexpected expenses. It’s best to have six months’ worth of non-discretionary expenses saved up for emergencies.