Innearly 90 percent of children lived with two parents.
Sticking to a family budget is easier with a goal in mind. Figure out your monthly income, including any child support you receive, and tally your fixed monthly expenses. And be realistic about the food total: Lay it all out. An Excel spreadsheet is an easy-to-read option to keep a running tally of expenses.
You can also try a special budgeting program, like You Need A Budget. Many moms swear by a hands-on method: Having to touch the money can reduce the urge to spend. Try the buddy system. Know someone — a neighbor, coworker or mom pal — who always seems to have her money act together?
Being accountable to someone you respect and like can help keep you on track. Make sure to investigate the following. A credit is Single parent finances subtracted from the amount you owe in taxes, while an exemption is deducted from the total income the amount you owe is based on.
Avoid IRS woes by deciding who it will be in advance. The Earned Income Tax Credit. Single parents with low incomes often qualify.
The Child and Dependent Care Credit. The Child Tax Credit. This is intended to offset the expenses of adopting a child. Prioritize coverage in this order: Health insurance Uncovered medical expenses will put your financial security progress on hold and can even send you into bankruptcy faster than anything else.
If your employer offers coverage, get signed up now. You can also find a reliable broker to do the legwork for you check out the National Association of Health Underwriters for more information about brokers. Remember, single parents can pare down medical costs by taking advantage of community and state-based programs that provide checkups and low-cost immunizations for minor children.
Before you shop around, check your benefits through your employer some companies offer life insurance to employees at affordable rates — just remember that the policy almost always goes away when you leave that company.
If not, start the process by figuring out how much you need.
The traditional rule of thumb is to buy 10 times your annual income in life insurance. While that may sound like an awful lot, remember that the point is to replace your lost income for years to come — at least to see your child through high school, if not college.
A term life insurance policy is most economical. Shorter term policies five years vs. Disability policies are offered in short- or long-term.
If you have to choose, go with short. This is another benefit that many big companies offer employees; if not, a life insurance broker can also set you up with disability insurance.
And everyone needs to do that, especially single parents.As a single parent, it's important that your children be provided for should something happen to you or your ex-spouse.
Life insurance is an inexpensive way to take care of this.
Steve Stanganelli is a Certified Financial Planner with Focus Capital Wealth Management in Bedford, N.H. Finances can be especially tricky for single parents. Here are a few steps to lead you down the path to financial harmony. Steps to Financial Freedom in the Single Parent Home Teaching Your Teen Money Management; Steps to Financial Freedom in the Single Parent Home; Series About: Managing Money.
It's an easy trap to fall into. .
Apr 25, · Single Parent Finances: How One Single Mom Of Three Gets By On $40, A Year Shutterstock Raising kids as a single parent is no easy feat, especially when it comes to paying the bills.
The single parent may feel overwhelmed by the responsibility of juggling caring for the children, maintaining a job and keeping up with the bills and household chores.
And typically, the family's finances and resources are drastically reduced following the parents' breakup. Single-parent finances can present some unique challenges to planning for tomorrow — but meeting your financial goals isn't impossible. By learning to balance current finances with long-term planning, single parents could work .
As a new parent, it’s normal to feel both overjoyed and overwhelmed. And especially if you’re newly single, finances can compound your worries. Fortunately with a game plan in place, money matters will be manageable — and you’ll feel much more in control.