Financial tips for single parents

1. What are the biggest financial challenges single mothers face? Having enough to cover their children’s needs and their own. Planning for retirement, college tuition and current financial stability can be a strain. 

2. How can single moms budget successfully, especially if they have higher expenses for childcare, lower-income, etc.? 

Every dollar needs to count. They not only need to save and budget but they also need to invest early so that their assets can help their money grow independent of their income earnings. Single mothers traverse several obstacles that they uniquely encounter due to reduced income and potentially limited child support.

3. What do single moms need to consider if they want to get ahead financially? Assessing their debts based on the amount of interest as being charged on those stats and as important and prioritizing which debts need to be handled first. Taking advantage of 401(k) plans and their employer and making sure they can receive a match from the employer allows for them to have income during retirement that’s not only fueled by their own assets but is also helped by their employer’s matching contribution. They also need to look at opportunities to generate more income and/or receive training to improve their income capacity with their current jobs or maximize earning incomes with a side hustle. 

4. What are some solutions for single moms who are struggling financially? Getting additional training to improve salary earnings is critical for moms who are struggling financially. There may be scholarships available for single moms, foundations that are willing to donate to single moms to help them be able to improve their academics to be able to earn more income to suffice their family’s needs and their own.

5. Are there any financial tools that can help? There are online budgeting tools available to help assess what needs are necessary and what needs or not.

6. How should single moms approach credit-building and debt repayment? Making sure that whatever is used on credit does not exceed what is possible to be paid back in a timely manner is critical. The moment that credit exceeds what is eligible to be earned then we end up in a slippery slope of bad credit and credit remediation. Addressing that based on their interest rates can help them prioritize which debt to pay off first. Also, finding opportunities to improve salary either through résumé reviews, new skill attainments within the current employer, or mentorship and ambassadorship or coaching from those in higher roles, can help single mothers prepare and achieve higher income opportunities within their corporation or other institutions.

Angelica Prescod, Wealth Advisor at Edward Jones in Scottsdale. She enjoys singing with her church worship team, hiking, running and spending time with her 11 year-old daughter. Angelica has a drive to not only continue building wealth for those who have already built a considerable amount, but also open doors for individuals who never had a chance to learn how to accumulate wealth themselves.