Being a single parent means juggling responsibilities, especially when it comes to finances. Between raising children and managing a household, money can feel stretched thin. But with a few practical steps, you can gain control over your finances and reduce stress. Here are some financial tips to help you build a stable foundation:
- Create a Budget Start by tracking your income and expenses. List all fixed costs (rent, utilities, etc.) and variable expenses (food, entertainment). Aim to spend 50% on necessities, 30% on wants, and save 20%. A clear budget helps you avoid overspending and guides you in paying off debt and saving for the future.
- Increase Your Income. If your budget feels too tight, consider side gigs like dog walking, babysitting, or tutoring. Think about skills or hobbies you can turn into income while managing your schedule.
- Build a Safety Net. Aim to save at least three months’ worth of living expenses. This emergency fund can help you avoid going into debt during unexpected situations, such as medical bills or car repairs.
- Tackle Debt. Debt can be overwhelming but facing it head-on is essential. Use the “avalanche” method to pay off high-interest debt first, or the “snowball” method to knock out smaller balances for motivation.
- Plan for the Future. Set clear financial goals, like saving for your child’s education or your retirement. Prioritize your own retirement savings, as there are more options for funding your child’s education than there are for securing your future.
- Automate Your Finances. Set up automatic bill payments and transfers to savings accounts. Automation reduces the risk of missed payments and helps you save without thinking about it.
- Be Tax-Savvy. Take advantage of tax credits available to single parents, such as the Child Tax Credit and Earned Income Tax Credit. Consider speaking with a tax professional to ensure you’re maximizing your tax benefits.
Final Thoughts
Managing finances as a single parent can be challenging, but small, consistent steps can make a big difference. By budgeting, saving, and planning ahead, you can create a stronger financial future for you and your children.
Sources:
- [1] https://www.investopedia.com/ask/answers/022916/what-502030-budget-rule.asp
- [2] https://www.nerdwallet.com/article/finance/what-is-a-debt-avalanche
- [3] https://www.creditkarma.com/advice/i/what-is-the-snowball-method
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.