Being a single parent is no easy feat. Between balancing work and home life, you likely feel a lot of pressure and stress, and you have minimal time to yourself to unwind. The financial aspects can also be incredibly difficult to manage, given that you are living in a sole-income household.
According to the 2018 Economic Well-Being of Women in Canada report, this financial burden is especially heavy on women, with single mothers earning approximately $27,900 less per year than single fathers. However, while effectively managing your finances as a single parent is tricky, it’s far from impossible – you just need to be strategic about it. Below are three tips to help you lower your financial stress and learn how to make your money work for you as a single parent.
1. Create Savings Goals
Saving for you and your children’s future is always important, but it’s especially essential when you’re going it alone. With that in mind, create monthly savings goals for yourself and start saving as early as possible. Assess your monthly income and expenses, and determine what a realistic saving goal is for you, and then stick to it. You’ll also want to be smart about where you’re putting your savings. In Canada, you have a few options that will help you grow your savings. For instance, you can deposit your money into a tax-free savings account (TFSA) and accrue interest on the funds. If you’re saving for your child’s post-secondary education specifically, you can start a registered education savings plan (RESP) and receive additional funds from the government to assist in making your child’s educational dreams a reality.
2. Prioritize Financial Literacy
Knowledge is power, so having the capacity to understand financial terms and implement effective financial practices in your day-to-day life is going to be beneficial to you. Start by asking yourself some important questions: Are you familiar with your debt? Have you consolidated your debt? Do you understand how credit card interest rates are calculated? Do your research and familiarize yourself with the options available to you to boost your financial literacy.
3. Don’t Be Afraid to Seek Help
Being a single parent is incredibly hard, so if you need a little bit of financial assistance, don’t be afraid to seek it out. You can consider personal loans (unsecured or secured), or cash advance payday loans, such as those offered by iCash. Their flexible repayment plans give you the freedom you need to minimize your financial stress and make your money work for you. Plus, their online application process grants you an instant decision on the status of your loan, saving you time. If you’re in need of a quick loan, apply here.
Single parents face many unique challenges, particularly in the financial sphere. Although it can be difficult to effectively manage your money to support your family, there are a number of tools and resources you can use. By strategically implementing these tips, you’ll guarantee your financial wellbeing and a prosperous future for your children.
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