How to Save Money, Budget, and Invest for Single Parents

Posted on March 07, 2021 by Alyssa Hodges, One of Thousands of Family Coaches on Noomii.

Becoming a single parent can present unique financial challenges.

You suddenly find yourself paying all of the expenses alone – and you have a child (or children) relying on you! It can be overwhelming and you might feel like you’re in survival mode. If you’re a new single parent, my advice is to simplify.

First, figure out what your NEEDS are, versus your wants. Gather your credit card and bank statements. Write down each item you’ve spent money on over the past several months and categorize it as a “need” or a “want.” Cut out the wants – this may be things like TV subscriptions, non-essential shopping, and $5 coffees from Starbucks. You’re a single parent now – the needs have to come before the wants!

Second, start an emergency fund. This is a “just in case” fund you don’t touch unless you absolutely need it – you get sick, your child(ren) get(s) sick, or you have a major unforeseen expense like your car breaking down. A good rule of thumb I’ve heard is saving three to six months’ of your living expenses.

Third, start paying off your debts. Hopefully, the “needs” included your credit card minimums to keep your credit score in good shape. Now that you’ve got your emergency fund, you can start increasing the payments you make on your credit cards or other loans and get those paid down.

Fourth, you can invest for your family’s future. Investments might include retirement accounts, real estate, starting a business, etc. It’s important to contact an accountant and/or financial advisor regarding investments. If you can’t afford either yet, start with “Money: Master the Game” by Tony Robbins. It’s full of advice from financial giants who share the principles they’d leave their children with if they couldn’t leave them money.

Being a single parent can present unique financial challenges, but you can overcome those challenges by being responsible with your money and prepared for anything life throws your way.

You can watch my YouTube video on this topic and find other free resources by searching the title of this article on YouTube.
As always, though I am a family law and estate planning attorney in Missouri, I’m not your attorney unless we have a signed engagement agreement. This advice is intended to be educational, not legal, in nature.