Single Parenting on a Budget Advice
Are you struggling to create or manage a budget? If so click the button above to watch the video of the #CreditChat conversation I had with the Experian team.
We discussed everything from creating a stable financial future, establishing budgeting best practices, staying on top of your credit, starting an emergency fund, and choosing the right insurance.
You can download the Budget Sanity Saver worksheet to get a head start with creating your budget automatically. You need Microsoft Word to use it.
Chat Q & A
Here are the questions that were asked during the conversation and my answers:
Q1: What are the first steps a single parent should take when creating a stable financial future for his/her family?
Access where you are, decide where you want to be and create a written plan. Ask for help. check out Financial Planning Days for free financial planning in your area.
Q2: How should a newly single parent establish a budget? What are best practices? Write all current expenses like rent, food, car, etc. Subtract those expense amounts from your income. Best practices: Live below your means. Budget each paycheck before you spend. Pay yourself first.
Q3: What steps should single parents take to ensure they are staying on top of their credit? check your credit report regularly. Your bank may offer free monitoring. Get your annual credit report from AnnualCreditReport.com. Spend only what you can repay immediately. Pay your bills on time or at least make arrangements to pay.
Q4: What financial documents should newly single parents review when creating a financial plan? Review your bank statements to see the history of your spending.
Q5: Are there any tax credits or deductions that can help reduce the amount of taxes single parents pay? earned income credit. child care credit. Student loan credit.
Q6: What are best practices for establishing an emergency fund? Pay yourself first in each paycheck. Add most or at least half of your tax refund. Sell items you don’t really need and put it in the fund.
Q7: What insurance considerations should single parents take? Term life seems to be a good policy to have since it covers you for a specific period of time while your children are still in your home.
Q8: What should single parents know about creating an estate plan? Talk with a financial planner who has information and/or an attorney. Get your will made so your family and the state knows what to do with your property and your children in case of your death
Q9: What advice do you have for a single parent who is struggling financially? If it feels like you are drowning stop the leaks. Take a deep breath. Remember it is temporary. Create an action plan to slow your spending, increase your income, focus on what you have instead of what you do not have.
Q10: Do you have any final financial tips for single parents? You have the power to become financially free. Learn all you can about money management. Focus on increasing your income rather than cutting everything from your life. Get the kids involved and teach them the value of money but more importantly the value of life and family.
Resources mentioned in the video:
National Foundation for Credit Counseling (NFCC) – Credit and Debt Advice