Tips for Financial Planning for Single Parents
When planning their finances, single parents should budget and track expenses, monitor all accounts, learn about various tax credits, future-proof their finances, and learn how to navigate tight finances. While these sound easier than they are, learning about these tips can help you create a solid financial foundation to give you more financial peace of mind. In this post, we’ll discuss financial planning for single parents in more detail.
How Single Parents Can Create A Financial Plan
1. Budget And Track Expenses
The severity of your financial situation differs depending on how you got here. You may be used to paying for everything on your own, but those coming from a two-income situation or needing to find their own source of income need to buckle down on finances.
Set up a budget that establishes your needs while still setting aside money for recreational activities and occasional expenses. Tracking your expenses can help you look at what you need and what you’re expected to pay for. This gives you the best idea of what charges occur when, and you may even find areas to cut out or cut down.
Use whatever budgeting format works best for you. Apps are a popular choice now because they are automated, but it may be easier to visualize if you put everything into a spreadsheet or calendar. Look into the envelope method if you overspend often.
2. Monitor All Accounts
Every account you’re responsible for should be monitored carefully for overspending, fraud, and late fees. This includes:
- Savings accounts
- Checking accounts
- Credit (mortgage, credit cards, loans, vehicle loans)
This is especially important if you do not have the funds to cushion these accounts or allow for automatic payments. Overdraft fees and late fees are enough to devastate a budget.
3. Educate Yourself On Tax Credits
Single parents often qualify for tax credits for each child, depending on their income. These credits reduce the dollar amount you owe in taxes every year, and they can provide more value than deductions (which reduce the amount of your taxable income).
Other tax-related information to keep in mind: child support payments you receive are not taxable. Only one parent can claim a child as a dependent. If you receive alimony, you are responsible for paying taxes on it.
4. Make Future Planning A Priority
Once you’ve locked in your budget and understand what expenses occur each month, you can start setting savings goals. These are essential for a secure future, and they come in handy in emergency situations such as:
- A lost job
- Long-term illness
- Car or home repairs
Once you’ve established several months of income in savings, you can move on to precautionary products such as life insurance for you or your child.
5. Learn How To Work With Tight Finances
Working with little income and/or tight finances is no effortless task, but it's doable. Look into assistance programs in your area. They help provide financial help or free services, such as:
- Food stamps
- Cell phone service
- Internet plan discounts
Working in line with your budget is especially important with tight finances to limit overdraft fees or late fees.
While it may take longer, establishing emergency savings can save you from getting into a tricky situation and paying more in the long run for emergencies. It’s always better to handle these situations as quickly as possible but planning ahead is preferred.
How Loans Help Single Parents With Financial Issues
Even if you have everything laid out perfectly, it takes one emergency to derail your finances completely. This can devastate at any point, but especially early on in establishing savings and setting up your finances.
A title pawn or a payday loan online can help you get the money you need to address unforeseen issues. At Alabama Title Loans, Inc., you can start the process online, so there is no reason to rush out and spend hours at the bank. These are a great option for all levels of credit–good or bad.
A representative will reach out to you to check over all the information you’ve provided and answer any questions you may have. They’ll set up a time for you to come in and finish the process and remind you to bring in the necessary items.
For a title pawn, this includes your ID, a lien-free title to your vehicle, and the matching vehicle for collateral. Online payday loans in Alabama require the ID, your social security card, a recent bank statement from your checking account, your most recent pay stub, and a blank check from an active checking account in your name.
Once everything is finished, you are free to use the money for your emergency situation, including home and auto repairs, medical bills, or covering rent and utilities.
Get Started Today
Financial planning for single parents is difficult, and if you face an emergency situation, do not hesitate to reach out for assistance. Check out your options and get started with Alabama Title Loans, Inc. to address these concerns as soon as possible. And if you feel like being ready to apply for cash advance loans with us, just fill out and submit a short inquiry form on our website.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.