Juggling family finances can be a challenge for any household, but making money work in your favor can be especially daunting for single parents. Among the 73.7 million children in the U.S. who are younger than 18, around 23 percent live with a single mother, according to the U.S. Census Bureau’s report on America’s Families and Living Arrangements.

Single parents already have experienced the unexpected. It’s important to ensure your children will be provided for if something happens to you. Life insurance policies can provide for your children financially, pay off your mortgage or designate money for college. Carefully research the options, but invest in this safety net.

It’s also important to create a trust, or an estate plan, to legally designate how and when your assets will be distributed to your children, as well as who will act as their guardian.

Single parents face financial challenges that are unique to their situation, but there are a number of resources that are easily accessible. In addition to local banking professionals, online resources such as Mint.com and Level Money can help track income, spending and saving.

Long-term planning, daily management, updating budgets and seeking guidance from financial experts are successful strategies that can pay off for single parents and reduce the stress of most money matters. Living on a single income takes planning and discipline, but it is manageable. The first step to success is to create your own road map for saving, spending and the unexpected.

Budget

• Create a realistic budget after determining how much money is coming in, and exactly where it goes.
• Earmark mandatory monthly expenses such as rent, utilities or childcare, but do not include luxuries such as gym memberships, cable tv, etc.
• Budget for a realistic savings plan.
• Budget for food last. Grocery store outings can often derail a spending plan.
• Automatic bill pay options can help keep the budget on track and avoid late fees.
• When income changes, so should the budget.

Savings/Emergency Fund

• Every family needs an emergency fund. Regardless of how much can be saved on a monthly basis, the key is to save consistently and practice a hands-off approach, unless there is a true financial emergency. Aim to be able to cover six months of living expenses.
• Consider unexpected health care costs when determining how much to save.
• Direct deposit from paycheck to savings account is the best approach for consistency.

Spending Plan

• Work diligently to pay off outstanding debt, such as credit cards or loans.
• Identify “wants” versus “needs.”
• Cut costs everywhere you can. Clip coupons, join rewards programs, buy generic brands, shop resale. Two-for-one or “kids eat free” nights are available at many restaurants.
• Look for opportunities for free “stuff” or entertainment. There are numerous options for spending quality time together, without spending money.
• Talking to children openly about the spending plan will help them understand the family goals and create good habits of their own.

Retirement vs Education

• If forced to choose between retirement savings and money for college – choose retirement. It’s critical to save early. Your earning potential will reach a limit at some point, so retirement savings need to be strong when it does.
• Your child’s college education can be financed through a grant, scholarship or loan.

Also see: the Little Rock Family Single Parent Resource Guide