Easy Money Saving Techniques For Single Parents

One of the most important things you can do as a single parent is to find money-saving techniques to help you stretch your dollar. Once you calculate the cost of your home, food, groceries, childcare costs, and more, you can spend far beyond what you can afford. You will have to adopt budgeting strategies to reduce your spending, increase your savings, and make life more affordable.

In this guide from Wisconsin Auto Title Loans, Inc., we will explain some cost-cutting tips for single parents struggling to afford to pay for their whole family. We will also explain how emergency loans, such as title loans or installment loans, can help when faced with emergency expenses you cannot afford.

The Cost Of Living As A Single Parent, Explained

There are more than six million single-parent households in the United States, and the statistics about their economic status are staggering.

In a study by American Progress, they found that the average annual income for a male single parent is $57,000, and a female single parent is $40,000. The Federal Deposit Insurance Corporation (FDIC) found that 25% of single-parent households earn less than $30,000 yearly. With inflation increasing grocery, gas, and housing prices, what may have been enough to afford living in the past doesn’t cut it today.

This had led many single-parent households to turn to credit cards and loans. Over half of single-parent households report using a credit card, personal loan, or line of credit in the past year. Without the money to afford daily and monthly expenses, many single parents can’t save for an emergency fund to help cover emergency costs, like doctor’s visits, home repairs, and unexpected travel.

5 Single Parent Financial Tips To Afford Increasing Costs

The only way for a single parent to afford the increasingly expensive lifestyle in the United States is to get creative. That means reducing costs and taking advantage of savings hacks to reduce spending and increase savings. If you are in financial trouble as a parent, there are options for you to reduce your costs to help give your kids the life you always dreamed of.

Here are five ways to save money as a single parent:

1. Create A Budget

The first money-saving tip for single parents you should try is to create a budget. This is the foundation that money-saving techniques are built on. A budget calculates the cost of living by subtracting your monthly costs from your take-home pay. Write down all of your income, including your salary, passive income, and freelance money, and all of your expenses.

If you cannot afford your lifestyle with your current spending, it may be for the best to adopt a new spending method. We suggest the 50/30/20 method, which calls for you to spend like the following:

• 50% on needs (gas, rent, mortgage, food, etc.)
• 30% on wants (eating out, buying gifts for your kids, new clothes, etc.)
• 20% on saving (setting money aside for an emergency fund, financial goals, etc.)

Let’s say you take home $3,000 per month. By following this method, you can spend $1,500 on needs, $900 on wants, and put aside $600 for savings every month. While it may be hard to adjust to this new budgeting method right away, it can help in the long run by clarifying where you spend too much money and what costs you need to cut.

2. Cut Costs

Once you have created your budget, you can begin looking for ways to reduce expenses. One of the best ways to save money as a single parent is to eliminate costs you don’t need. You are likely spending money on nonessentials that don’t impact your life that much, so getting rid of these costs altogether can give you more money to spend on needs and your savings.

Here are some ways to cut costs to better afford your budget:

• Subscriptions you don’t use
• Eating out at restaurants
• Buying coffee at cafes
• Spending money on gas when you can use public transportation
• Paying for child entertainment when you can go for free options
• Reduce energy usage with LED bulbs

One of the reasons your expenses can be so high is because of childcare costs. You may have to pay for babysitters, tutors, daycares, etc. You can reduce childcare costs to keep more money for other essentials.

3. Reduce Childcare Costs

Local non-profits and government programs can help you better afford your childcare costs. For example, the Wisconsin Early Childhood Association and 4-C can help look after your kids while you work and provide food. You won’t have to pay as much as you would by hiring a babysitter, reducing the cost of childcare while you're working.

You can also see if there are any other single parents in your neighborhood who would be willing to share childcare costs, so all of your kids can get looked after.

If you need more money to afford childcare, you can get the Child and Dependent Care Credit, as long as you have earned income and paid for childcare while seeking employment. This can help pay 20-35% of qualifying expenses up to $3,000 for a single parent.

4. Cut Costs As the Grocery Store

One of the biggest expenses you’ll face is groceries. Going to the grocery store every week to feed your family can cost over $500 per month, but you can reduce these costs with a few cost-cutting tips.

First, we suggest buying in bulk. Children can go through a lot of food or products in a short amount of time, so buying in bulk allows you to get the quantity you need at a lower long-term cost. You can also buy large portions of meat, bread, and vegetables, and freeze what you aren’t going to use right away.

You can also use coupons to reduce the cost of your grocery trip. If you have access to a local newspaper, scan through and snag any coupons that you might use. Otherwise, stores like Target and Dollar General do a fantastic job of letting you add coupons to a digital account that you can use at the register. The key is to use coupons for things you buy and not to buy things simply because you have a coupon.

5. Create An Emergency Fund

Part of budgeting is planning for the future. While you may feel swamped trying to afford your current costs, not planning for the future can put you in a tricky position down the line. For that reason, you should create an emergency fund to cover urgent costs down the line.

Financial experts suggest saving 3-6 months’ worth of living expenses in a savings account, should you face financial emergencies. This can help if you go through a period of job loss or face exorbitant costs you cannot afford.

The following are some emergency expenses you can afford with a rainy day fund:

• Overdue bills (rent, mortgage, credit card payments, etc.)
• Medical expenses
• Auto and home repairs
• Veterinarian bills
• Funeral expenses
• Unexpected travel costs

We suggest starting with $1,000 and automating weekly or monthly savings deposits to keep up with your savings. However, this can take time, and you may face emergency expenses before you can build up your nest egg. In that case, Wisconsin Auto Title Loans, Inc. can help with our single-parent loans.

How To Get Emergency Loans In Wisconsin

At Wisconsin Auto Title Loans, Inc., we offer two loans for single parents facing emergency expenses: title loans and installment loans. You can get approved for both of these loans on the same day you apply and receive your funds within one business day. They are great options for fast emergency loans, as long as you plan to afford repayment.

Learn more about our Wisconsin emergency loans below:

• Title loans – This secured loan lets you borrow up to $15,000 based on your vehicle’s value. You can be approved if you have paid off your car, truck, or van in full. You will need these required items to get approved: a state-issued photo ID, a lien-free vehicle title in your name, and your vehicle for an inspection.
• Signature installment loans – This unsecured loan allows you to borrow up to $1,500 as long as you agree to repay the loan in fixed monthly installments. It’s best for those who haven’t paid off their vehicle and may need more time to afford repayment. You will need a state-issued photo ID, your most recent pay stub, and a checking account statement in your name.

Do any of these loans sound like they can help you? You can begin the process by filling out our online form, speaking to a representative over the phone, and bringing your required items to our nearest Wisconsin store to get verified and approved in less than 30 minutes.

Get Emergency Financial Help As A Single Parent In Wisconsin!

While following these money-saving tips for single parents can help you afford your monthly expenses, it may take a while to build an emergency fund. In the meantime, Wisconsin Auto Title Loans, Inc. can help when you face urgent costs with our title loans and installment loans. Get same-day funds by filling out our online loan form and getting approved at one of our branches in 30 minutes!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.