Money Management Tips for Single Parents: Simple Steps to Stay on Track

Blog Highlights

• Budget: Create a simple budget that's easy to stick to and realistically tracks income and expenses for your family.

• Save: Build daily saving practices into your everyday routine that'll prepare you for the unexpected.

• Resources: Use free counseling, online tools, and BALANCE to achieve your financial goals and secure the future for you and your family.

Simple Steps for Single Parents to Stay on Track

Good money management skills are important for all of us, but it is especially crucial for single parents/guardians supporting a family on one income. Every dollar matters and making small changes can make a big difference when it comes to finances. Here are some money and life changing habits for single parents/guardians creating a brighter future for their family.

Create a Realistic Budget 

One of the first steps to effectively managing money as a single parent/guardian is creating and following a realistic budget. It allows you to track your income and expenses so you'll know exactly what your money is allotted for each month.

• Income: List all income including paycheck, side hustles, child support or alimony, and more. 
• Expenses: Note all expenses starting with the essentials (food, housing, childcare, utilities, and transportation) then other bills such as credit card payments, insurance, and entertainment.
• Subtract: Deduct your expenses from your income. If your total is zero – don't fret – this means every single dollar is being put to work! If you have anything left over, build an emergency fund or use it to pay off debt. If expenses are more than your income, revisit your budget to find areas you can cutback on or consider ways to increase your income. 

Effective Ways to Stick to a Budget

Each budget will differ depending on income, number of children, and where you live. Following a budget takes practice, discipline, and consistency. Here are a few things you can do to make sticking to a budget easy:

• Focus: Set clear goals to prioritize food, utilities, housing, and transportation in your budget. These essentials are imperative and should be budgeted for first before anything else. 
• Save: Find ways to save money on essentials such as seeking more affordable housing (downsizing or relocating to a less expensive area) and cutting expenses wherever you can. 
• Adjust: Make regular adjustments to your budget and daily habits. Packing a lunch and coffee everyday and dedicating ten minutes to review your finances each week helps create healthy financial routines.

Smart Financial Choices for Better Living

Smart financial choices can make life more balanced and less stressful for single parents/guardians managing a household on a single income. Prioritizing a realistic budget, setting routines, and planning affordable meals and family activities can stretch resources without sacrificing quality time. 

Set Clear Financial Goals

Setting clear short- and long-term financial goals as a parent/guardian helps create stability and a roadmap for your family's future. It allows you to focus on needs, prepare for emergencies, and build a foundation of securing a strong future for you and your children.

• Prepare for financial emergencies. Having a dedicated savings account with at least six months of living expenses to fall back on when unexpected financial issues arise is imperative. Consider having automatic deposits (even if it's a small amount) made directly from your paycheck to this account every payday. 
• Save and invest in yours and your child's future. Whether saving for a home, retirement or education, it's important to begin planning today for a brighter future tomorrow.
• Plan for tomorrow. Create a will, an estate plan, and set up beneficiaries on accounts so that you'll know the future is secure. Be sure to consult with a professional or seek legal counsel to determine what will work best for your unique needs and wishes.

Build Consistent Habits into Your Daily Life

From good budgeting, tracking and spending, to making adjustments that align with your financial goals, simple money habits such as these can make a lasting impact now and in the future. 

• Meal plan using ingredients that can be used in multiple dishes. This makes your shopping list smaller, checkout less expensive and reduces dinner time stress. Check out our "How to Save Money Groceries [7 Money-Saving Tips]" blog. 
• Shop secondhand items, buy generic, use coupons, and shop sales. Shopping at thrift stores is not only trendy but can offer great deals on clothes, things for your home, and more.
• Find free or low-cost entertainment. Community events, parks, museums, and at-home activities offer affordable fun without sacrificing your hard-earned dollars.
• Use cash or a debit card instead of a credit card. Doing so gives you a realistic view of your spending patterns. If you must use a credit card, choose a low-rate option, use it wisely, and pay off balances each month to keep your credit score strong.
• Take advantage of in-store and rewards programs. Whether it's saving a few dollars at the pump, on groceries, or even earning points that can be redeemed for household items – using your rewards for things that are already in your budget is a savvy money saving move.
• Use free online resource tools to grow your financial knowledge and skills. Members of Peach State FCU have free access to financial education and resources from the industry experts at BALANCE to help you track income and spending, learn about credit, money management, and more. Take advantage today!

Helpful Tip: Enroll in our debit card Round Up Program – a simple and smart way to save that requires no effort! Every purchase you make with your Visa Debit Card will be rounded up to the nearest dollar and excess funds will be transferred to your Round Up Savings Account overnight.¹ 

Peach State is Here to Help Single Parents Build Money Management Skills for Life 

Utilizing these relatable tips that can help single parents/guardians stay consistent with their finances is a smart money move. Every small step you take now will add up to big benefits when it comes to saving for your family’s future. To learn more about how we can help you save money, budget better or reduce debt faster, contact us today! 

1 A separate club account will automatically be opened when signing up for and using the Visa Debit Card Round Up program.