Managing money and creating a budget: Is there anything that screams “adulting” more? Financial responsibility takes knowledge, an honest look at your lifestyle, and, of course, discipline. Handling family finances, though—that’s tricky for a whole different set of reasons. There are more mouths to feed, activities to pay for, desires to fulfill or deny. And when you’re a single parent, the cash flow is often much drier. Keeping your head above water might feel like an impossible task, but it’s easier to attain stability with your family finances when you know what mistakes to avoid.
Do you know some of the most common financial pitfalls for single parents? Here are 8 financial traps to look out for.
1. Leaning on Credit Cards
While credit cards may seem like an easy way to fill in the gaps of a decreased income, avoid using them as much as possible. It’s just too easy to miss a payment or to say that “I’ll pay the interest just this once” and end up snowballing it into a heap of debt.
2. Shopping When Depressed
Many people like to go shopping as a way to cheer themselves up. But the hit to your budget or added debt you’ll incur from your shopping spree will only make you feel worse later. If you just need to get out of the house but you know you’ll be tempted to spend money, leave your credit card at home. And if you think you might really be struggling with depression, read this.
3. Inadequate Child Support
Unfortunately, nearly 50 percent of child support is never paid. If you find that you’re not receiving payments, consult a professional on how best to handle the situation. Many churches or community centers have pro bono legal services for single parents.
4. Giving in to the “Gimmes”
Don’t let your children’s wants cause you to exceed your budget. Emotions like guilt cause many single parents to overindulge their children, even if they can’t afford it. When you teach your kids how to separate wants from needs, you’re giving them an important life skill. Often, mindful spending comes from watching you and learning from your example, but iMOM’s Ask Why Before You Buy free printable is a great visual tool.
When you teach your kids how to separate wants from needs, you're giving them an important life skill. Click To Tweet5. Trying to Maintain a Higher Standard of Living
Unfortunately, many parents will need to make lifestyle adjustments after a divorce or death of a spouse. You may need to consider moving or changing your spending habits. It can feel like adding insult to injury to have to make adjustments like this, but financial peace is worth the sacrifices.
6. Unexpected Expenses
Put aside a little bit of money from each paycheck to set up an emergency fund. Car repairs, broken refrigerators, and trips to the doctor always seem to happen when the checking account is drained. Without savings set aside, you may be tempted to get further into credit card debt.
7. Being Afraid or Embarrassed to Ask for Help
There are many nonprofit organizations and churches with programs specifically designed for single parents. And many single parents find that family, friends, and neighbors are willing to pitch in when needed. But if you don’t seek help, they may never realize what your needs are.
8. Vulnerability Traps
Sometimes when you’re emotionally vulnerable, it’s easy to fall for “something for nothing” scams or quick money-making opportunities. You might say yes to a risky proposal because you dream of the best case scenario and how much that would help you and your children. There are people who will try to take advantage of your situation, but don’t fall for it. Slow and steady wins the race is the best approach, especially when you have mouths to feed.
Taken with permission from Larry Burkett’s Financial Guide for Single Parents Workbook
Let’s help each other out. What other pitfalls have you stumbled into?
