smart spending

Financial planning tips for single parents

Tip No. 5: Save for emergencies
Tip No. 5: Save for emergencies © Alon Brik/Shutterstock.com

Bad things happen -- the roof needs to be replaced, you lose your job. Deal with these problems not after they happen but through prior planning. "You have to take responsibility," says Ten Haagen. "You have to think about the finances of raising a child."

He recommends sitting down with a financial planner as you go through major life changes and "getting real." This means before marriage, before you have children, before you go through a divorce and after a death. "You have to think the consequences through. A Certified Financial Planner professional can help you sort through the decision-making."

Cullinane suggests that bucket budgeting (see Tip No. 3) can help you reach savings goals. She cites a study showing that when people were asked if they could save 20 percent of their income, most said no, but when people were asked if they could live on 80 percent of their income if they had to, most said yes. "So, be aware of how you frame questions to yourself. You might be surprised how it can change how you think."

advertisement

Show Bankrate's community sharing policy
          Connect with us
MORTGAGE HOME EQUITY AUTO CDs CREDIT CARDS
Product Rate Change Last week
30 year fixed, 0 point 4.41%  0.03 4.44%
15 year fixed, 0 point 3.33%  0.02 3.31%
5/1 ARM 3.34%  0.21 3.55%
 
View Rates in your area Search
Product Rate Change Last week
30K FICO-based HELOC 4.75% --0.00 4.75%
50K FICO-based HELOC 4.51%  0.01 4.50%
100K FICO-based HELOC 4.24% --0.00 4.24%
 
View Rates in your area Search
Product Rate Change Last week
60 month used car loan 2.86%  0.23 3.09%
48 month used car loan 2.79%  0.42 3.21%
60 month new car loan 2.94%  0.04 2.98%
 
View Rates in your area Search
Product Rate Change Last week
1 Year CD 0.89%  0.01 0.88%
2 Year CD 1.01%  0.02 1.03%
5 Year CD 1.59%  0.01 1.60%
 
View Rates in your area Search
Product Rate Change Last week
Balance Transfer Cards 15.71%  0.01 15.70%
Cash Back Cards 16.36% --0.00 16.36%
Low Interest Cards 10.91% --0.00 10.91%
 
Search
advertisement
FRUGAL NEWSLETTER

Discover new ways to cut costs and save more every day. Reduce your spending, not life’s pleasures. Delivered weekly.

advertisement
Partner Center
advertisement

Connect with us