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Raising a child — or children — is an incredibly rewarding experience.
It can also be a very expensive one — and doing it alone can be a major source of financial stress.
Being a single parent means you have to become a pro at making your money stretch and establishing your own financial safety net.
We spoke with three financial professionals — who have personally experienced life as a single parent — to get the best tips on how to budget and save money when raising children alone.
10 Money Management Tips for Single Parents
These strategies and advice will help you create a workable single mom budget (or single dad budget).
1. Know Your Cash Flow
First things first — you’ve got to know how much money is coming into your household and how much is going out. This is especially important if you recently separated from or lost a partner who used to handle all the finances.
“The first thing [to do] is to face the reality of the situation,” said Molly Warda Certified Financial Planner with Equitable Advisors and a single mom of three. “Knowing that you really have little and that things are tight isn’t as scary as not knowing [where you stand financially].”
If you don’t have awareness of your cash flow, you could end up easily spending more than you make. Ward recommends establishing a regular time — weekly or monthly — where you sit down and review your finances.
You can also check past bank statements to get a better idea of money habits you might have.
Don’t just focus on your spending. Make sure you’re clear on your sources of income, including any child support or alimony.
2. Create a Values-Based Budget
“Once you know where your money is going, it’s time to make hard decisions,” said Kumiko Love, an Accredited Financial Counselor and founder of The Budget Mom. “Is your spending honoring you and what you want to accomplish?”
Your budget should reflect what you value most. For example, if you…
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