Money issues are a concern in most families. However, as a single parent, all concerns related to money fall directly on your shoulders. It’s also likely that you’re dealing with a vastly different financial situation than you were as a part of a married couple. In this case, Marketwatch recommends the following tips to single parents struggling with their financial outlook.
If you don’t already have a budget in place, now is the time to create one. A budget is the full total of all income minus your expenses. It’s best to dive deep when creating your budget. Try to think about all the expenses that could arise during the course of a month, even those unexpected costs that can pop up suddenly. It’s also important that you set some money aside for an emergency savings fund to account for some of these unexpected costs.
It’s best to have at least six months of living expenses stored away for future use. However, the total amount of savings you need depends on your living situation. Despite any specific factors that come into play, make sure the money you put into your savings fund remains untouched. A credit card is also useful in this case, but it should be reserved for true emergencies to ensure your credit score remains healthy.
While it’s crucial that your children’s material needs are sufficiently met, you want to stop short of spoiling them. This entails telling your kids no from time to time, especially when they make requests for high-value items that aren’t vital to their health and well-being. This is also a good way to teach your kids the importance of being financially responsible. Poor spending habits often begin early, and they can be exacerbated when parents make bad financial decisions.