In today’s world, non-traditional families are almost as common as traditional families. Single parents, especially, tend to have fewer financial resources, higher debt, and lower credit scores. So what can you do? There are some simple things that anyone can do, but that are especially important for single parents who want their children to have similar financial advantages as two-parent households.
First, keep a notebook and write down how much you spend and what you’re spending it on. Leave room so you can later go back and label these expenses as “wants” or “needs”. There is a positive effect just from writing down what you’re buying—it brings consciousness. And when you have time or when a page is full, go back and identify whether purchases were wants or needs. Once you’ve done that, maybe you’ll see areas that you can easily cut back on or eliminate altogether.
Second, be honest with yourself. If you don’t have the money to buy something outright, with cash, you probably can’t afford it. Buying things on credit should only be for absolute emergencies. Nobody enjoys the title of “liar” so think of that when you’re thinking about buying something that you really can’t afford and don’t actually need. Don’t lie to yourself.
Think about bartering for services you need. Sometimes daycares will cut their rates if you volunteer to work some hours for them. Or if your kid(s) go to private schools, there are sometimes a difference in tuition prices depending on if you commit to a certain number of volunteer hours per school year. If you have a friend who works in automotive services and you have a skill that his or her business requires, perhaps you can work out a deal of free exchange of services.
Finally, if worse comes to worse and you find yourself behind on payments or in collections, know the policies regarding Fair Debt Collection.