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13 Financial Tips for Single Mothers

13 Financial Tips for Single Mothers PhotoYou might have lost your loved one, or he’s not man enough to face his responsibilities. Either way, you’re officially a single mother.

“As of 2011, 11.7 million families in the U.S. were headed by a single parent, 85.2% of which were headed by a female”, according to the U.S. Census Bureau.

With the increasing prices of market goods, it’s becoming hard to budget for a family – especially if you’re a single parent.

Your income plays a major role in how your family will fare in the coming years. Here are some tips on how to save as much as you can for your family.

Track your income and expenditures

Face it. You’re having financial problems and you need to budget everything wisely and tightly.

Write down all of your expenses for a month to track where money is going. Budget everything, keeping in mind to always put something for savings, insurance, and retirement plan.

Be insured

Be sure you have life insurance and health insurance to save you and your family for probable unexpected losses.

Get a life insurance from highly rated insurance companies. Choose one that will be suitable for your budget.

Plan for the future

Since your income goes to many other things like bills and food for the children, you might think that. Experts suggest that single parents should contribute monthly to retirement and college plans for the children.

Don’t buy on impulse

You have your children depending on you, so your income is precious. Avoid buying unnecessary things.

If possible avoid getting near fancy shops and boutiques.

Cut off some luxuries

Drinking soda, coffee from Starbucks and other beverages can be counted as luxury. Drink water instead to save some money. Plenty of water is good for your health too!

Clear out debt

As much as possible, don’t loan money from anything or anyone.

If you still have balance in your credit card, see to it that you pay it all at once.

You can’t invest in anything if you have debts to worry.

Be honest with your children

Tell them honestly about your financial situation. They’ll understand the circumstances and they’ll help the whole family by saving the best way they know of.

Go for tax exemptions

There are tax exemptions for your situation like child-care tax credit.

Several other tax credits are available for claiming. Maximizing the potential of these credits could cut a good chunk off your payable taxes and save you more money.

Build an emergency fund

Aside from insurance policies, having extra cash that you can readily get your hands on in case of emergency is really valuable. You should have at least six months’ worth of salary reserved as contingency money.

Buy big

When you buy for supplies, buy the big ones.

This strategy will save you money and will also prevent you from ordering take-out which is more expensive.

Buy generic labeled food

They are way cheaper than branded ones. They have almost the same ingredients so more or less they’ll taste just the same.

You might see resentment from kids when they don’t have their favorite brand on their plates. It just takes time to get used to it. In a couple of weeks, they won’t know the difference.

Buy used cars

If you ever plan to buy a car, go for the second-hand ones. They’re way cheaper that brand new ones.

Just make sure the seller is an authorized dealer.

Ask for help

If all are becoming too much for you, ask help from your parents. They could take care of your child while you’re in work.

They can also help in some of your expenses.