Three Financial Tips for Single Moms! by Murray Newlands

Today we have a guest post from my friend Murray Newlands. Murray and I had lunch together at the Financial Bloggers Conference #FINCON12 and chatted it up about money management, blogging and... oh well, I won't bore you. In addition to blogging about finance, Murray and his company, Influence People, conduct blogger outreach for a variety of clients interested in creating a presence online. Now, on to the post!

Many hard working single mothers (do I need to even say that single mothers work hard!) across the country constantly find themselves in dire financial straights. Women still make less money than men. In 2010, the average woman made 77 cents for every dollar the average man made. The average African-American woman made only 68 cents for every dollar a working black man made, and the gap drops to 58 cents per dollar for Hispanics. This means that single working mothers need to save money wherever they can, whether it’s on auto insurance, luxuries, or even basic necessities like food and clothes.

This means that single women need usually need to manage their finances better than single men. Since they make less money, there is less room for error and they need to make sure their children see more of their paycheck every two weeks. That is why I am sharing three financial tips for single mothers:

Tip 1: Get a credit report

Getting a credit report can help you evaluate your overall financial situation and check for any fraudulent activity. Remember that you will need to order your credit score separately from the report. Knowing your score and what debts are affecting it  will allow you to strategize on ways to increase it your score.

Tip 2: Look at all your insurance options

Many workplaces offer multiple options of insurance for their workers. Many of the more expensive options are designed for large families. So, if you only have one kid and nobody else lives with you, you might be able to go for the cheaper option. Just make sure to read all the small print so that you know how much you're covered. Many insurance options have yearly caps and it can be easy to go over those caps if you select the wrong plan.

Tip 3: Cut out the little things

Cable can cost in excess of $130 per month. iPad data plans can cost as much as $30 per month. Do you really need internet on your iPad, your phone, and at home? Figure out where you go online the least and cut that plan to save money. You can then use that money to save for your kids' college tuition, buy food, and clothing. Also, food is a great place to save money on: learn about nutrition, and cut out junk food and TV dinners. Replace them with wholesome, healthy ingredients from which you can make your own meals. It might take a bit longer, but it is worth it for your kids, your health, and your pocket book!


Until next time... 
-Murray