Being a single parent, particularly a single mom, sounds challenging. And it is true. Family financial life changes significantly after the divorce, and statistics show that single moms struggle the most. Children generally stay with them, and moms need to pay for expensive child care and other additional costs.
But how to survive financially as a single mom and even improve your financial situation? Keep reading the blog post and find the answers to all these questions!
How to Be a Single Mom With No Help?
I am a happily married woman with two amazing daughters. My spouse and I live in a small American city and have been married for over ten years. However, not all women in the U.S. have the same situation, and the percentage of single moms facing financial difficulties is overwhelming. For this reason, many stereotypes about single parents constantly appear. For example, people believe they are drug addicts, alcoholics, and generally bad parents. Of course, these are just stereotypes.
The problem is that they need to have time both to earn money and to raise children, which is complicated without help from their other half. Such a situation negatively impacts the financial life of the family and the quality of time spent with the child.
Although we actively discuss the issue of gender equality in the country, the majority of single parents are women. That is why I have prepared 20 financial tips for single moms that can help them deal with a difficult money situation, build wealth, and improve their and their children’s quality of life.
1. Save Money on Bills
As I have noticed, many women have problems covering everyday expenses they didn’t pay attention to when they were married. One of my main tips for single mothers is to start saving on bills. If you have a difficult financial situation, check whether you pay too much for basic things like car insurance and broadband. You should compare different websites and find better and cheaper options, which can help you start saving money in your bank account.
2. Upgrade Your Medical Insurance
Single parenting may force you to save money on particular expenses. You will not suffer by paying less for your mobile Internet or other non-essential costs. However, there are several things you should not skimp on. One of them is medical insurance.
The healthcare system in the U.S. is complex and expensive for low-income families. Covering treatment costs may be impossible without good insurance. Therefore, paying more for insurance monthly and saving money on medical bills in the future is better.
3. Buy Life Insurance
Regardless of your age, consider buying life insurance. You never know what might happen to you, so insurance can protect your children from potential financial struggles. Furthermore, it can be an inheritance for them. If you are a single mother without assets to pass to your heirs, you can write them as life insurance beneficiaries.
4. Cut Expenses
Spend time analyzing your expenses and determining which are not vital. Try budgeting every dollar to understand how much you need to pay for the most important things. You may even be surprised how much you spend on unnecessary things! Your expense analysis is easier to do with the help of a mobile application managing your budget. Or you can write your costs on paper or in programs like Word, Google Docs, or Excel spreadsheets if you prefer more traditional ways.
You can significantly cut costs in specific areas when you see your expenses and what you pay the most.
5. Plan Ahead
Financial planning is one of the most essential things that can help single moms survive financially. Low-income families should be prepared for every emergency. Therefore, try to make a financial plan and decide what you will do in the specific situation.
6. Put Money Aside
To be prepared for unexpected expenses, you should put aside a specific monthly amount. Try to take 20% of your income for emergency savings. However, even such a sum may be too difficult for a single mother to save, so try to spare whatever you can afford.
7. Change Your Mindset
Financial tips for single moms don’t always have to relate to physical actions. Your mind also plays an essential role in building wealth. To create a better life, you need to imagine that you already have it. Don’t believe the stereotypes that single-parent families are constantly struggling. You can be a successful mom and woman even after divorce.
Don’t be afraid of money. Single mothers often consider money as a threat. Instead, focus on opportunities that you can get from increasing income. Recognize your previous mistakes in your personal finance management and draw conclusions from them. Learn from your experience, don’t repeat your mistakes, and begin your new money journey!
8. Set Financial Goals
One of the most important financial tips for single moms is to set financial goals. Earning money is simpler when you know your purposes. It should be both short-term and long-term goals. For example, in 3 months, you are going to repay a debt, and in 2 years, you have to finish your home repair.
9. Consider Money-Saving Alternatives
One of the most valuable tips for single mothers is to save on basic things. For example, if you are used to having dinner at a restaurant, try to cook more at home. You will see how much it can save you money. You can buy second-hand clothes or buy them on sale or in a thrift store.
When you go to the supermarket, pay attention to its own-brand products, which are typically cheaper. Such simple steps are very useful for single moms struggling financially.
10. Apply for an Emergency Loan
Facing emergencies outside your financial planning is always unpleasant. It may be especially stressful if you are a single mom. If you have difficulties surviving financially and need extra cash, applying for a loan may be the right option. Many direct lenders offer loans for single moms needing support to care for their young kids. The advantage of such financing is that single mothers can get funds in their bank accounts even with no job. They can prove their monthly income from government programs, alimony, or other sources.
Unlike other forms of single moms’ support, such as grants from federal programs, you need to pay back the loan amount borrowed. Depending on the loan type, you can face a high-interest rate. Therefore, read the loan agreement carefully before signing.
11. Check Your Credit Score
Unexpected expenses can appear at the worst moment. If you need to take a loan, every dollar matters. Good credit borrowers generally have loans on better terms and with lower interest rates. An excellent credit score can also be helpful when you apply for a job because your employer may want to check it. Therefore, look over your credit report regularly, and if you notice any mistake, contact immediately the credit bureau that made it.
12. Increase Your Single Mom Budget
If you are looking for a way to survive financially as a single mom, one of the best financial tips is increasing your income. There are various options to do it, so your choice will depend on your free time and opportunities.
Change Jobs
The family’s financial life always changes after divorce. Single parents can’t afford as much as they used to. Therefore, looking for a new job with a higher salary makes financial sense. The new employer may also offer better, more flexible work conditions that will increase your net worth. Don’t be afraid of changing something in your life. You will see how positively it can affect it!
Find a Remote Work
Are you a single mom who wants to spend her spare time earning cash? In such cases, consider job options that allow you to make money online. A great idea is to find a freelance job. There are many various freelance jobs today that are not related to IT.
For example, consider freelance writing. If you have strong skills in this area and don’t have problems with grammar and punctuation, being a freelance writer can be a great option to get extra cash in your bank account!
If you are interested in creating content, have excellent communication skills, and have the ability to manage time as your strong point, think about the virtual assistant position. Virtual assistance allows you to work from home and survive financially as a single parent.
You can make such remote work your main or additional source of income. You can start working in the evenings and in the future make it your full-time job. Freelance is an excellent choice for single parents because it allows them to spend more time with their children and make money at any moment.
Ask Your Boss for Better Pay
If you like your job and feel comfortable in your work environment, you can change the quality of your life without living your current position. Have you worked at the same job for many years but don’t see any income growth? Divorce is an excellent chance to talk with your boss about a raise. If you show great results and have strong knowledge in your field, why not ask for a salary increase?
13. Build a Support Network
A support network can help if you are struggling financially as a single mom. Understanding that you are not alone will positively affect your mental health. You can get support from your family members or friends. For example, they can take care of your child when you are at work, so you don’t need to pay for a nanny. When you have help, you can spend more time on self-care, which is vital for a single mom. You will feel much better, and it will impact both you and your children.
Additionally, don’t hesitate to contact other moms. You can meet them outside or in various Facebook mom groups. You can build a great local support system by communicating, advising, and helping each other!
14. Manage Your Debts
Start by repaying your debts when you don’t know how to survive financially as a single mom. If you have borrowed money using loans or credit cards, it may be challenging to return several debts at the same time. You can consolidate them into one place and pay an interest rate on one overall sum.
Paying off the entire debt may seem overwhelming, so choose one of the following debt management strategies.
Debt Snowball
According to the debt snowball method, you need to repay your debts from the smallest to the largest. After you return your smallest debt, you put funds toward the next-smallest balance. This cycle repeats until you repay all funds. However, while you are paying for your small debts, the amount of those bigger ones constantly rises. Consider this aspect before choosing this strategy.
Debt Avalanche
The debt avalanche strategy means you repay the loan with the highest interest rate first and then with the next highest interest until you are done. This method allows you to save money by repaying the most expensive loans. However, paying back such debts may take too long and make it challenging to stick to the plan.
15. Establish an Emergency Fund
An emergency fund is an excellent option for a single mom to be prepared for an emergency. It protects you from taking high-interest loans in case of unforeseen expenses or job loss. Try to have 3-6 months’ worth of costs on your emergency fund. This money should be kept in a separate savings account to avoid using it for daily expenses.
16. Learn About Your Tax Situation
For your whole life, you have paid a fixed tax amount. However, the situation changed after the divorce. As a single mom, you will pay a different tax rate than when you were married. Taxes for a single-parent family are lower, which will help you to save more money. Moreover, you can use Taxcaster to further ensure you are optimizing your new tax situation.
17. Start Investing
Investing can help you survive financially as a single mom. Having more than one income source is always great, but working at two or more jobs is not always an option. Therefore, investing is an excellent way to get extra money and increase the monthly budget for a single mom.
It differs from typical saving money because it makes money work on you, so you achieve financial independence.
18. Financial Assistance for Single Mothers
The top place among financial tips for single mothers is to take financial support from the government or federal agencies and local organizations. If you don’t know how to be financially stable with a low income and need more money for childcare, apply for various support programs. They will help you with issues such as:
- Accommodation;
- Paying utility bills;
- Buying groceries;
- Paying for high education;
- Purchasing a house.
Every single mom in the U.S. can apply for the “Supplemental Nutrition Assistance Program,” also known as “food stamps.” This program positively affects their well-being and helps people with low-income pay for food.
19. Find Affordable Housing
If your rent costs don’t match your financing planning, consider moving to a cheaper location. It can be another apartment, a neighborhood, or even a city. If you don’t have to work downtown daily, finding more affordable housing in the suburbs will save you money. However, covering daily road costs can be more expensive than renting an apartment outside the city if you work in the central area.
Additionally, there are rent offers for single moms with a low income. Consider such options if you are looking for cheaper accommodation.
