Single mothers running the household with a single-income might fall short in fulfilling their wishes of creating a secure future for kids and family. Read to know more.
Single moms are like a bee who can be the busiest woman in the room.
However, a bee justifies its commitment by gathering enough honey which is not the case with a single mom. She can falter with poor savings and low-income opportunities.
We live in a world that runs on two-income households and single mothers should create maximum revenue generations to run their respective families smoothly without worrying a lot about money shortages.
Here are a few financial tips for single mothers to focus on the right points.
- Manage Your Finances – Don’t Let Them Manage You!
The safety net for a single mother is always a liability and hence to overcome it you need to set boundaries and sustain within a budget.
For a single mother, affordability can be a luxurious affair and so being honest when you cannot afford something should be an instant action whenever you are pushed into deciding whether you should be really spending or not.
Send out a message by letting friends and family know that you would let go of things that interfere with your budgeting plans. You’ll be surprised at how many people really feel the same way but never expressed it openly, and you may even be a trendsetter!
2. Inflate Your Income
Think big when it comes to income sources. Single moms normally have to restrict their working hours if they have new-borns or kids who are too young and need the mother around. But that is a temporary phase and you need to decide what jobs you can take up before and after the parenting ends.
Stop hesitating in investing yourself especially if it helps you generate more money.
3. Shield Your Kids With Life And Disability Insurances
The future is uncertain especially at times when things like pandemics are shutting down the world activities.
If you stumble upon something through colleagues or work on how to obtain the best medical aid including vision and dental plans that you can afford then never ignore it as they can come to your rescue when you need them the most. In fact, try purchasing an appropriate amount of life and disability insurance to protect your kids.
Keep in mind your valuable and biggest asset maybe the money you haven’t earned yet, so do everything and anything you can to safeguard your dependents from your earning power and possible loss of you.
4. Don’t Procrastinate Savings For Your End Days
When protecting your children’s future, never go easy on looking after yourself and your own needs. After slogging and working for years while fulfilling responsibilities towards your children, you deserve to retire tension-free and leave financial worries behind. Even if you think that your grown-up children will take care of you, it makes good sense to have your own financial back-up to fall back on.
However, you need to lay the foundation for that today. Create and manage a separate account that pays interest and start diverting some fund towards it.
Something is better than nothing and likewise investing even a small amount of fund is better than not investing at all.
5. Smart Shopping
Limit your entertainment expenses as they are like a ‘whirlpool for expenses’. Always be on the lookout for promotional offers, use discounts, and customer reward points at your local stores. Bulk shopping is advisable rather than making several outings to reduce your expenditure. Develop the habit of bargaining and keeping an eye on the quality of the items purchased as they form the basics of budgeting.
You can also save some money by buying used items such as storybooks and toys for your kids. Single parenting provides you the opportunity to take a couple of notches above when it comes to becoming more responsible in bringing up your little one. Proper financial planning guarantees that your child is raised up with minimum concerns and gives you the freewill to enjoy single parenthood.
6. Control What You Owe
When you are the head of the household, it’s up to you to ensure your entire family’s commitments and needs are met. To accomplish that, you need to be extremely dedicated when it comes to money management basics (take the help of an emergency fund). Your singularity is either an accident or destiny but you must plan for it and work towards it. Get a book and keep track of everything that you spend, invest, and blow your money on. This financial data is a treasure that can educate you on your spending trends and habits.
7. Be Stingy And Frugal
Nobody has the right to point out that you are stingy in spending money, and who cares as long as it is for your children, their future, and your own well-being. Change your attitude to suit your current financial situation because it is now that you have to become frugal and wade through your life and live within your means.
It’s not practice but discipline that makes you perfect. Try to make purchases with only cash as it keeps a constant check on your spending, with your mind constantly telling you how much you have in hand before it is exhausted.
8. Financial Literacy Is Compulsory For Your Children
It really hurts when you try to explain your financial circumstances to children but that is something every parent regardless of your income and marital status has to explain and follow strictly.
Make them accept the ground reality as it can maintain a consistent model with good fiscal behavior. The goal is to keep your family financially focused on what is important, what is real and affordable. In the process, you’ll also be raising financially literate children with sound skills and knowledge that they can freely tap into during their adult lives.
Also, don’t forget that someday you will need to be able to rely on your own savings to take care of yourself in retirement without becoming a painful burden to your children and others.
Start small and then increase the tempo on what you save monthly. As your financial situations improve and your children become independent, use new and extra found cash to increase your contributions to investments, and build your net worth.
Be a role model for your children as they learn the importance of money and look up to their parents, especially when they see their parents saving, investing, and handling money in their day-to-day life with discipline. As a single mother, it is your responsibility to educate your kids about financial planning from an early age.
Teach and engage them to differentiate between wants and needs so children will understand and learn to spend wisely. Explain and make them realize what hard-earned money is? What are the sacrifices you make? And its real value in society. Allocate a monthly budget for your children so that they learn to manage their small expenses independently. Moreover, educate them about online banking, apps, and how they can use these judiciously to secure their savings and access them when the need arises.
9. Awareness Matters A Lot
The rule of thumb is how aware you are of the financial requirements to raise your children. The key to effective single parenthood is being perfect and precise. Single parents often get emotional and tend to get carried away to ensure that their children do not miss the presence of the other parent by buying expensive clothes and gifts and fulfilling all their wishes. Remember that your goal is to save some money for the offsprings and not spend lavishly as it can take a heavy toll on the financial balance and push you to a debt trap.
Expressing your love and affection need not necessarily be buying them everything. It is fine to satisfy their demands once in a while which in turn would pay off in the long run. Therefore, make sure to create awareness about your financial limitations to your children at their early stages.
Single moms are like superwomen who can juggle several tasks at once. When it comes to reaching your financial goals, there are no rules but you create the rules and only you decide on the best ways to spend, budget, and invest your money. The plan should not be complicated instead keep it simple and the bottom line is to create a robust financial plan by making informed decisions. Keep working out ways to pay off your debts because it is a stinger so make some solid savings. As you get down to business seriously you automatically become an inspiration for your children who will eventually follow in your steps.
By Karthick V