Raising kids is no easy feat. And if you’re doing it alone as a single parent? That is completely admirable.
There’s no doubt that handling finances as a single parent is a major challenge. But one major plus of handling finances alone is that you make all of the financial decisions. There is no bickering or comparing budgets.
Still, keeping your family’s finances healthy as a single parent is no easy task. In fact, according to a recent report by the U.S. Department of Agriculture, the average cost of raising a child from birth to the age of 18 is $233,610. With such high expenses, single parents can struggle just to get by. And saving money? All too often, saving is placed on the back burner due to other pressing financial priorities.
It may not be easy, but single parents can put money in the bank with a little help. Here are a few tips on how to save money as a single parent.
Create a plan to pay the bills
If you’re struggling to find enough money to pay the bills, this is your first order of business.
Create a schedule of when each regular monthly bill is due. Compare that to your paychecks. When will you have enough money to pay it?
It’s pretty impossible to schedule bill due dates to line up with your paydays. So it’s up to you to create a plan to ensure you always have enough cash for your bills.
One way to do this is to create a separate bill pay savings account. You can automatically have money withdrawn from your regular savings account and put into your bill pay account. This way, you’re automatically setting aside money to ensure your bills are always paid, and on time. Just be sure to update any automatic drafts you have setup.
Remember, bills have to be the first priority for you and for your kids. If you are continuously lacking money to pay your bills, you may need to cut back on other areas of spending.
Adopt a minimalist lifestyle
Minimalism can greatly improve your financial health. Minimalism, or living with less, means you have to seriously consider every purchase before you make it. Is it something you need? Will it be useful? Will it be worth the cost?
No, you don’t have to live in a nearly-empty house to call yourself a minimalist. By adopting a minimalist lifestyle, you can reduce your expenses greatly. You can cut out anything in your life that no longer serves you or isn’t bringing you joy. Find joy in living simply.
Prioritize an emergency fund
Everyone needs an emergency fund – and that includes single parents.
Emergency funds are absolutely necessary to protect your financial well-being. Tragic things happen – your car can break down, you can forget to pay a bill, or you could get laid off. Don’t let these events ruin your finances. Prepare by starting an emergency fund today.
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Sell what you can
If you’re unsure of how to find money to pay your bills or start an emergency fund, don’t fret. One easy way to increase your cash flow fast is to sell household items you no longer need.
This step will jumpstart your finances. Most people easily have at least a couple of hundred dollars worth of sellable items sitting around. Host a garage sale, or sell items on sites like Facebook, Craigslist, or OfferUp.
Use the money you earn to jumpstart your savings goals. And, as an additional plus, by clearing out your home, you’re already starting to practice minimalism.
Plan special, but low-cost celebrations
Between holidays and birthday parties, seasons of celebration can quickly become very costly. And if you have multiple children, the costs can wreck your budget. You could save money for a year and still struggle to pay the bills come the holidays.
I grew up in a large family. My parents lived fairly frugally so we could afford the things that mattered most. During my birthday parties growing up, I remember my parents always went all out making a homemade cake, letting us decorate sugar cookies, and they would give me one small gift. It didn’t cost them much, but they were very fun and memorable. Honestly, I don’t really remember many of the gifts they gave me, but I do remember the traditions they set in place.
Of course, every parent wants to provide their kids with the world. But if you’re struggling to save any money otherwise, you might not be able to afford spending thousands of dollars on Christmas gifts. And that’s okay.
Instead of worrying about throwing the perfect party or finding the right gifts, work on creating memorable traditions for your kids. Because truly – that’s what matters most.
Make the most of advantaged savings accounts
As a single parent, saving money might be exceedingly challenging. But make the most of what you can save by taking advantage of accounts designed for your benefit.
If your company offers any retirement account incentives, take note. For instance, say your company will match up to 5 percent of what you contribute to a 401(k). If you contribute nothing, you are leaving a huge benefit on the table. Do everything you can to receive the full match so you aren’t forgoing benefits your employer wants you to use.
And if saving money for your kids’ college fund is a priority for you, you will want to look into a 529 college savings plan. With a 529 plan, your investment earnings can grow tax-free. You are also able to take tax-free withdrawals when you use the funds on qualified education expenses.
It’s not always easy to come up with the extra cash to add to your savings. But it’s important to remember to save for the future, too – not just the present.
Increase your income
It’s safe to assume that most single parents are insanely busy people. But if you are able, a side hustle can dramatically improve your finances.
Whether you chose to babysit on the weekends or can start blogging and freelance writing, a side hustle is a great way to increase your income quickly.
And don’t forget to consider your full-time job. Is there a way you can increase your income there? Is there an opportunity for you to work towards a promotion? Or, could you potentially switch jobs to receive a higher income?
There’s only so many expenses you can cut back – that’s when it is key to look at your income.
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Are you a single parent? How do you save money? If you aren’t a single parent, what other money-saving tips do you have?
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