Financial Tips for Single Parents
Smart money management is always important, but it can take on more urgency for those who are without a partner. Whether you’re divorced, widowed, or single by choice, single parenting brings unique budgeting challenges.
Here are a few things single parents should keep in mind:
Credit cards
While credit cards may seem like an easy way to fill in the gaps of a decreased income, it’s wise to avoid using them as much as possible. RGCU has credit card options that single parents can use for emergencies. Come into one of our branches and discuss which cards are best for you.
Shopping in general
Many single parents have to make lifestyle adjustments after a divorce or the death of a spouse. You may need to consider moving or changing your spending habits. Lots of people like to go shopping to cheer themselves up, but the added debt you’ll incur will only make you feel worse. This even applies to groceries, which are an expensive part of the budget. Plan that trip carefully, too, so you can better avoid impulse buying.
Holidays
Guilt causes many single parents to overindulge their children, even if they can’t afford it. This is especially true during holidays and birthdays. Be sure to set designated amounts for gifts, and stay within the budget.
Ask for help
Check with your credit union for financial advice. There are also many nonprofit organizations with programs specifically designed for single parents.
Use your RGCU Rewards
RGCU Members accrue points for everyday purchases. Our members who are single parents can use these points to redeem gift cards, merchandise, and cash back.
Whatever your income, it’s important to give yourself a safety net, because emergencies happen. Put aside a little bit of money from each paycheck to set up an emergency fund for car repairs, broken refrigerators and other realities of life.
As a general rule, experts recommend having six months’ worth of non-discretionary expenses in an account that is separate from the one you use for daily expenses. That could be a savings account or possibly a low-risk investment account.