Everyday Money Management

Financial Strategies for Single Parents

The Facts: According to the Census Bureau, nearly twenty million children under 18 lived with one parent in 2002. Of those, 16.5 million lived with their mother and 3.3 million with their father.

The Reality: Divorce is often hard on families emotionally and financially. Not only do you face the end of your marriage, but you may face the end of your lifestyle as you once knew it. That may not be all bad, as it can give you the opportunity to start over. But it can be frustrating, expensive, and at times draining. We’ve worked with thousands of single parents through the years and we know the challenges they face. We’ve prepared this brochure to give you suggestions for coping with the financial realities of single parenthood.

Have a Plan: For most single parents, it’s more important than ever to have a spending plan and to make sure you are setting aside money for emergency savings. While most people think of a budget as limiting and painful, it can actually be liberating to learn how to make the most of what you bring in. For a free guide to get you started visit ConsolidatedCredit.org and download Budgeting Made Easy.

Let the Kids Help: Your divorce may have been a traumatic change for your family and you may want to shield your children from your problems. You may even want to buy them things you can’t afford, thinking it will make them (or you!) feel better.

But keeping your finances in check and giving your children a chance to help the family financially will be much more productive in the long run. Depending on the ages and maturity levels of your children, you can find ways to allow them to participate in your family’s budget planning. Whether it’s something as simple as clipping coupons and helping to create a grocery list, to allowing an older child to get a part-time job to earn money, they may be more eager to help than you think.

It never hurts to give your child structure and responsibility. Giving them specific household chores to do, and an allowance for their spending money can help you and them.

See Consolidated Credit’s free publication How to Talk to Your Kids About Money for more ideas and guidelines.

Get A Handle on Debts: If you have debt that is difficult for you to pay, talk with Consolidated Credit Counseling Inc. about a repayment plan with your creditors. We’ve helped thousands of parents across the country get back on track financially. Visit www.ConsolidatedCredit.org or call 1-800-210-3481 for a free confidential consultation. Also, check out Credit Hell: how to dig out of debt by Howard Dvorkin. This book tackles difficult debt problems and provides solutions to most financial problems.

Check Your Credit: It’s a good idea to check your credit report at least once a year, and more often if you are experiencing debt problems. Make sure the information about your individual and joint debts is accurate, and dispute any mistakes. You’ll learn more in Consolidated Credit’s free booklet, Repair Your Credit.