Many newly-single parents are blindsided by the financial aspects of raising a child. However, following a few basic principles can help any parent develop a fail-proof plan of personal finance management.
Organize priorities. Decide what is most important and arrange your schedule based on that. As with most families, no matter their structure, paying the bills for basic needs like housing, food, utilities, and transportation are the most pressing concerns. Make a list of monthly expenses, along with those that occur less often, like car maintenance or school clothes. See how much discretionary income remains for non-essential but valuable expenses, such as recreational activities.
Set up a budget. Single-parent households must be extra careful to balance needs with wants, since there is no second parent to help with expenses. There are many software applications that can help you develop a realistic budget that can be easily followed and updated.
Maintain employment stability. Don't give up a current job unless you have found another, except for true emergencies. Do your best at work to create a professional image and willingness to learn. Those kinds of employees get noticed by supervisors and may be offered raises, bonuses, or promotions. Their quality work performance earns top-notch annual review, and that helps to ensure job security.
Child support and alimony. If you receive child support, remember that any change in your ex's financial situation may impact your income as well. If the child's father gets a raise, you may be entitled to an increase in child support.
Plan for the future. Child support will eventually end when the children come of legal age, so you will need to revise your household budget when that happens. Downsizing to a smaller home or condo may help to offset loss of income. College expenses for a child should be considered, too, and both parents should plan for that.
With a minimal investment of planning and effort, single parents can learn to become successful money managers to meet their family's budgetary needs now and in the future.
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