Kids, jobs and carpool struggles are at the top of the list for most single parents, but we should add savings plans for single moms to the list. So many women find themselves parenting alone without much or any assistance from their children’s father. In these cases having an emergency fund set up and savings accounts are seriously important. From minor incidental things like car repairs, dental procedures or having to use up all of your sick leave with a sick kid, single moms often find themselves scrimping and pinching pennies just to get by. A good savings plan for single moms is imperative to their long term financial success.
Savings Plans For Single Moms
Use an automatic savings account draft. This is one of the easiest ways to have money taken out of your account without it really hurting your overall budget. There are many banks and outside savings plans you can set up to take out specific amounts daily, weekly or monthly. There are also options to have your account autodraft into savings change amounts up to the next whole dollar when you use your debit card. So, if you spend $1.75 at the gas station on your debit card, your bank will debit your account $2 and put the extra $.25 into your savings account for you. These pennies here and there can add up fast.
Don’t have that option? Sign up for Digit!
Digit is a FREE automated savings program that pays attention to your spending habits, then finds small amounts of money from your checking account and determines how much you can save and transfers it to a savings account for you. It does this every.day.
I’ve been signed up with Digit for 5 months now and they have put aside over $1800 for me so far! (my savings from Feb 15th-May 1st) Check out more details on Digit HERE
Ask your employer to direct deposit money to a savings account. Sometimes having the savings amount go directly into your savings account instead of transferring it there yourself can make a huge difference. Having an automatic amount drafted into your savings account each week can help you to build up savings without having to think about it. For those living paycheck to paycheck even $5 or $10 a pay period can add up over time.
Use cash only for groceries and put extra budgeted money into a savings jar. The envelope method of paying for household expenses is very popular. This is a similar method where you will pay only cash for your grocery purchases. Whatever is left at the end of the month doesn’t get carried over to next months grocery budget, but instead is put into a savings jar (or account).
Savings plans for single moms will be varied and must match the individual moms needs and abilities. However they are an important part of any moms financial planning. This is something that shouldn’t be overlooked or set aside, but should be made a priority as soon as possible.