Keys to Helping Improve Finances for Single Parents

Keys to Helping Improve Finances for Single Parents

By Trent Doty, CFP®, CDFA® On 02/26/2025

Single parents often face unique challenges, not just raising kids, but also creating a financial path toward success. With the cost of health care, food, school, and more ever increasing, being successful on one income is a huge barrier for more than 37 million parents — or roughly 30% of households in the United States.¹

While many moms and dads report struggles with finances, there are ways to help improve your finances and be proactive with your financial future in the short- and long-term.

Live within your means

No one really enjoys creating a budget, but it can help you manage your current situation with recurring expenses as well as plan ahead for unexpected costs or emergencies. Creating a budget can be stressful, but when you have one, it can help minimize stress over time.

Start with your monthly income, after tax, then plan for your essentials like groceries, gas, mortgage/rent, and utilities. Don’t forget any spousal support, child support payments, or other sources of income. Once you have those covered, branch out and look at things you want to do within your budget, like eating out, taking a trip, or buying gifts.

Make sure your budget allows for saving. Rainy days will come as well as eventual retirement down the road.

Along with budgeting, consider applying for a credit card to help establish a credit history.

Create a wealth management plan

Another key to your financial health is creating a plan to manage some of the risk and uncertainty about the challenges ahead. Start with goals, short-, medium-, and long-term. One-third of single parents don’t have life insurance or disability insurance.² These products help protect your loved ones and provide comfort should the unexpected happen.

Don’t be afraid to ask for help. Single parents may feel they have to go it alone, but financial professionals are here to help. We can help assess your entire financial situation and help provide a roadmap toward achieving your goals, even starting small with savings and investments that may grow over time.

Take time for yourself

One of the biggest keys to your financial well-being is your own mental health. Investing in yourself can be incredibly important as you invest in your family. Don’t be afraid to set aside time from work and family commitments for some “you” time. Even an hour a day, reading a book, taking a walk, or doing something you love, can pay dividends now and in the future. Taking steps over time with self-care, budgeting, and talking with a financial professional can help put you on a path toward your financial goals.

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¹ U.S. Census Data. November 2022. https://www.census.gov/newsroom/press-releases/2022/americas-families-and-living-arrangements.html

² Guardian Life Insurance Company of America, “12 Annual Workplace Benefits Study, 2023.”

Tagged with: cdfa, divorce, idfa, finances, single parent, wealth management