Raising a child or children is an incredibly rewarding experience.
What Is the Average Budget for a Single Mom?
The typical monthly budget for a single mom is a tricky financial situation.
Lakisha Simmons downsized her home. She sold her five-bedroom house and moved into a small two-bedroom apartment. Photo courtesy of Lakisha Simmons
Single mothers earn significantly less than married couples or single fathers.
And thats long before we consider the cost of health insurance or other insurance premiums.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help… Ward recommends establishing a regular time weekly or monthly where you sit down and review your finances.
you could also check past bank statements to get a better idea of money habits you might have.
Dont just focus on your spending.
check that youre clear on your sources of income, including any child support or alimony.
Is your spending honoring you and what you want to accomplish?
Your budget should reflect what you value most.
Use a Cash Envelope System
Creating a budgetis essential but only if youre able to stick to that budget.
Implementing acash envelope systemcan help.
I am a huge advocate of the cash envelope method, Love said.
Here are a few budgeting tips to help you find and cut back on discretionary spending.
Can you spend less in areas like entertainment, clothing or eating out?
Seeking outfree activities,meal preppingat home and exploring entertainment options at yourlocal librarycan help.
Save money byusing promo codes and coupons.
There are all kinds of justifications for spending, which could blow the budget up, Ward said.
And a lot of times, (theyll say) yes.
You dont know until you ask.
To obtain financial freedom, you may need to put a financial goal like homeownership on the back burner.
For Simmons, that meant selling her five-bedroom house and downsizing to a small two-bedroom apartment.
Simmons said she was able to shave $1,000 off her monthly expenses by moving.
Child careis another costly, but necessary, expense.
Love recommends looking intofinancial assistance programs, if youre eligible.
Employer-based child care benefits and flexible spending accounts are other ways you cansave money on child care.
It will help to alleviate some of the stress that single parents feel, Simmons said.
Here are a few proven strategies for saving regularly:
6.
Its also vital to have a will that names whom youd want to be their guardian.
If you dont have much room in your budget, its OK to start small.
Simmons focus on investing led her to retire from her career as a tenured college professor by age 41.
But its beneficial to maintain a positive money mindset.
Believe in yourself, Simmons said.
Know that you are worthy of being wealthy.
A negative mindset, on the other hand, can hold you back subconsciously.
You just have to start taking steps to get there.
I teach my children to create their own income, Simmons said.
Im teaching them to be creators and not consumers.
She assisted her 11-year-old son in writing and publishing achildrens book about divorce.
She also helps him invest the income he earns.
Love said she involves her son in her familys finances by sharing the ups and the downs with him.
I dont just share with my son all of the success and accomplishments with my money, she said.
I also share the struggle and hard decisions.
When your kids grow up, they wont remember your net worth.
Theyll remember the moments you chose to invest your time in their happiness and well-being.
Nicole Dow is a former senior writer at The Penny Hoarder.
Kaz Weida is a senior staff writer at The Penny Hoarder.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
