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Month: April 2011

Cash Solutions for Single Parents

Cash Solutions for Single Parents

Financial expert Dave Ramsey offers some advice for single parents who are trying to build a financially stable home when there’s no one else to lean on.

Dave RamseyThere’s a sense of hopelessness in the letters financial expert Dave Ramsey has received from single moms.

Combine the financial stress with the pressures of being a single parent and it’s no wonder single moms are looking for help. Ramsey offers advice on The Early Show.

He says the most common financial mistake that he sees single moms commit is that after a divorce many women hold on to their homes, hoping to maintain a sense of normality for kids whose family has just been torn apart.

Unfortunately, Ramsey says, these women can’t honestly afford the mortgage. They pay it, but they wind up spending too much money each month on housing. Financially, many single moms would be better off moving into a smaller home with a smaller mortgage payment.

Here are the questions he received and his advice:

I am a single parent of one daughter who is 14. I am at my wits end on what to do to get out of debt. I was divorced two years ago and was left with a lot of credit card debt, and not a very high paying job. I do have a better job now, but I feel I cannot pay off the credit cards or make ends meet. I have a monthly income of $2,200 and more bills than I can list at this time. I would appreciate any advice you could give me as to where to start.

Sharon

Ramsey says Sharon needs to start with a budget. She needs to write down everything that she needs to spend money on each month, from groceries to credit card bills. She then needs to write down how much she has available to spend each month. Sharon should plan to take care of all basic necessities first. She needs to budget for food, the utility bill, etc. After setting aside that money, she will clearly be able to see that she can’t afford to pay all her bills/debts.

So how does seeing that she can’t pay all of her obligations make her feel better? She should receive a sense of accomplishment knowing that she is providing all basic necessities for her family, Ramsey says. Also, although she won’t be paying all of her bills, she will be doing so consciously, she will be choosing what to pay and not pay. In this sense, she is taking control of her debt. Additionally, having everything written down on paper will help Sharon see where she can cut her spending and spark ideas for using her money more wisely. In this way, she will slowly be able to begin putting more towards bills, etc., each month.

Michelle in Wisconsin writes:

I am a single mom trying to make ends meet. I make just over $23,000 a year, but pay $400 a month in daycare. I have $20,000 in student loans and about $3,000 in other debt. I can barely make my monthly utilities. How do I get somewhere on my other bills?

Ramsey says Michelle needs a support system. The daycare issue is a financial hardship and also can be a scheduling and emotional nightmare. Michelle needs a neighbor or an older friend at church to “adopt” her and help take care of her kids from time to time. If Michelle doesn’t live near family, maybe it’s time for her to consider moving.

Ramsey has two specific financial suggestions for Michelle. First, he believes she — and all other single moms — needs to find an “accountability partner.” One of the hard things about being a single parent is that you feel isolated, like you have to make all big financial decisions by yourself. Single parents need to find someone they trust — a sister, a friend a pastor — to discuss the family finances and to assist in decisions like buying a car or replacing a dishwasher.

“This partner has to be someone who truly loves you,” Ramsey says, “because he or she also has to be able to ‘bust you’ when you make a stupid financial decision. The accountability partner has to be willing to say things like, ‘Don’t you dare take a shopping spree and put three pairs of shoes on your credit card this month.’ “

Ramsey also says that Michelle needs to look for ways to increase her income. A temporary solution is the dreaded part-time job. But Michelle needs to look for a long-term solution, too. He believes she should take advantage of any free time by reading or taking a class because “you get paid for what you know, not what you do.”

Michelle needs to formulate a plan for making more money. If she works in a salon, she needs to really learn the business so that one day she can own the salon, for example. She needs to continue to learn and grow so she’s prepared to move up the career ladder, he says.

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10 Ways Single Parents Can Save Money

10 Ways Single Parents Can Save Money

According to the US Census Bureau, there are over 14 million single parents in the United States, and those single parents are responsible for raising more than 22 million children. More than 80% of single parents are mothers, and more than 30% percent of all single parents receive public assistance.

Single parents often struggle with buying basic necessities and paying bills, and usually live paycheck to paycheck. Single parents often do not have any savings and are in debt.  Here are some ways that single parents can save money so they can make ends meet.

10 ways for single parents to save money:

1. Buy a Used Car:

Buy or trade in your current car for a used car with a cheaper note. This will either eliminate your car note or save you $50 to $200 a month on your car payment.

2. Use Coupons:

Buy whatever items are on sale or buy items with coupons. This can save you $50 to $300 a month. There have been instances where shoppers had a total bill of $200 and ended up paying $5 using coupons and buying items on sale.

3. Buy Generic:

Buy everything generic: household items, clothing, prescriptions, toiletries, dry goods, canned goods, paper products, etc. This will save you on average $5 to $50 a month.

4. Buy Washable Clothes:

Buy clothes that do not require dry cleaning. This will save you on average $50 to $150 a month.

5. Do you own hair and nails

and buy your makeup from a drugstore, such as CVS or Rite Aid. This will save you on average $40 to $100 a month.

6. Gas:

Buy regular gas for your car unless the owner’s manual suggests otherwise. Find the cheapest gas in your neighborhood to purchase. This will save you on average $.05 to $.20 per gallon.

7. Shop at Discount Stores:

Buy household items in bulk, such as paper products, cleaning supplies at discount stores such as Target, Wal-Mart, Costco, etc. This will save you on average $5 to $50 a month.

8. Reduce Expenses:

Reduce or cancel your cable plan, cell phone or Internet service, or get the cheapest plan available. This can save you $20 to $100 a month.

9. Buy Groceries at Superstores:

Buy your groceries at superstores or wholesale stores such as Wal-Mart, Costco, Sam’s Club, etc. Buy nuts, grains, spices, legumes at wholesale or health food stores. This will save you $30 to $200 a month on processing costs charged at regular grocery stores.

10. Fun with Kids:

Check your local library or newspaper to find free activities that you can do to with your kids. This can save anywhere from $5-$100 a month.

How to Travel to Jamaica as a Single Parent with Children

How to Travel to Jamaica as a Single Parent with Children

Step 1

Plan your travel itinerary and book your flight and hotel reservations. Include visits to some of Jamaica’s child-friendly attractions, such as the Aquasol water park in Montego Bay or the 1,000-acre working Prospect Plantation, outside of Port Antonio. Include time on the island’s beaches as well, avoiding the nudist area of Negril’s Seven Mile Beach.

Step 2

Get passports in advance of your trip. Plan to visit the passport facility with your children’s other parent, bring the other parent’s notarized Statement of Consent to the facility or provide documentation noting you are the sole custodian of the children, as both of a child’s parents must consent to having a passport issued for the child, notes the U.S. Department of State.

Step 3

Visit your doctor to ensure you and your children are up to date on your vaccinations and have enough of your prescription medications to last the duration of your trip. Have your doctor write a note explaining that you, or your children, have been prescribed any medications that you plan on carrying into Jamaica with you to avoid having it confiscated, suggests the Centers for Disease Control and Prevention.

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Single Parent Support Groups

Single Parent Support Groups

Being a single parent can be a strain on you financially as well as emotionally. The demands of being a single parent means that most single moms and dads limit or completely cut out any socializing. But not investing in friendships or relationships can be a bad idea, and can cause you to become isolated and depressed. Finding and getting involved in a single parent support group can really be worth the time and effort because the group can help you cope with single parenting issues. There are a variety of things that a single parent support group can offer you such as:

Activities – Many support groups have different types of activities that single parents can participate in. Group activities are a good way to meet others like yourself who have similar single parent issues and provide support. Enjoying a group activity can also help keep depression at bay and give you something fun to look forward to on a regular basis.

Conversation – Having an opportunity to talk with people who are in similar situations can be a relief. So often single parents feel they are being judged by others who don’t understand what being a single parent entails. You also have an opportunity to listen to and get advice from other single parents who have overcome some of the issues that you may be dealing with currently, and that can be very encouraging.

Learning – Many single parent support groups invite speakers to educate the group on various relevant topics, or provide useful information in other ways. Some of the useful topics covered might be learning how to talk to teens about touchy subjects such as sex, drugs, and alcohol. Or learning how to create a budget that works for the single parent; how to make their income go farther, or how to find ways to supplement their income. Being a single parent can be frustrating and confusing if you try to go it alone, and that’s where single parent support groups can help.

Find new interests – As a single parent you want to show your kids that you’re ‘okay’, and that means keeping some of your life for yourself; and living it! Getting involved in a single parent support group can be a great way to grow and enjoy life as you meet new people and develop interests. The truth is, the kids will appreciate and respect you more if you have some boundaries when it comes to carving out much needed ‘adult time’.

Support network opportunities – The people you will meet in single parent support groups will be more likely to want to be a part of your support network because they’re looking for support also. From something as simple as knowing people who can form a babysitting co-op with you to knowing people who can help you out with various things you’ll need in life.

Make new friends – If nothing else, a single parent support group will give you an opportunity to be around people like you who are going through similar issues. The potential for making new friends will be great. And who knows; maybe when you’re ready for a deeper relationship, it just might be the place you find it.

If doesn’t matter how you became a single parent, we all know that is can be challenging. Joining single parent support groups can really help give you that extra support that you and your family need. If your not sure where to find a single parent support group in your area, check out your local church websites or do a local search on your favorite search engine.

Tips for Single Parents to get Cheaper Car Insurance Rates for Teens

Tips for Single Parents to get Cheaper Car Insurance Rates for Teens

Tips from the Teen Car Insurance Guide

It’s scary enough when your teenager begins to drive – and as a single parent, it can be a bit tricky to determine where the responsibility lies when it comes to insuring them. Whether your child is living with your former spouse or is away at school, you should talk to your insurance company to determine whose policy your teen should go on.

Here are a few questions to be prepared for when talking with your agent:

  1. Who has custody? – If you’re a single parent, some insurance companies mandate that whoever has custody while the teen is attending school is responsible for the policy. Others suggest that the parent who has the teen a majority of the time should cover them under their policy. Depending on which company your insurance is through, your teen may also need to be named on both parents’ policies.
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  3. Do you and your ex-spouse have the same insurance company? – If you’re a single parent and you and your ex both have auto insurance through the same company, your child may be automatically covered under both policies. This is because some insurance policies define “the insured” as someone related to you by blood, marriage, or adoption who is a resident of your household.
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  5. Who has the best driving history? – As a single parent this can also be a deciding factor in whose policy your child should be covered under. If you or your former spouse have a poor driving record, this could increase the cost of your premium significantly. In this case, it may be best to have the other parent add your teen driver to their policy.
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  7. When does your teen’s coverage need to begin? – Make sure you notify the insurance company at least a few weeks before your teen gets his or her license. Even if you’re still deciding which policy they should be covered under, it’s important to have them covered in the interim – not doing so could cost you quite a bit of money if they’re involved in an accident. Not listing them also gives your insurance company the right to cancel your policy for misrepresentation. Make sure their coverage starts a few days before they’re ready to drive.

After you’ve determined whose policy your teen driver should be covered on, plan a time to talk with your former spouse about coverage options, safety issues, and related costs. Although this may be an uncomfortable conversation, there are many important things you should discuss:

  1. Decide between individual vs. existing policy – Most times, adding a child to your existing policy is best, rather than getting them their own. However, if you or your former spouse has a history of accidents or an overall poor driving record, it might be best to get them an individual policy.
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  3. Check back every six months – When your policy comes up for renewal (usually every six months), take a look at other companies to see if you can get a better rate. At this point, your current company may also give you a loyalty discount if you stay with them.
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  5. Switch the insured person – Some companies let you assign drivers to a specific car. To save money, list your teen as the driver of one of your older cars.
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  7. Increase your deductibles – Single parents might think this tip is a bit scary, but it does save you money. When you add a teenage driver to your policy, consider increasing your deductible. This can significantly lower your premium, so you can use your insurance in the unfortunate event of an accident, rather than on small things that you can pay out of pocket.
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  9. Take your college student off the policy – If your teen driver is away at school without a car, consider taking them off your policy. As a single parent you don’t want to be paying for something that is not needed. Make sure, though, that they won’t drive during a break from school – if they are uncovered and in an accident, you could risk losing a lot of money.
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  11. Don’t buy a new car – For most single parents (for most parents in general) this is not an option for you anyway, but if it is you need to know this: Brand-new cars are much more expensive to insure than older models. If you intend to buy a car for your teen to drive, resist the urge to get something brand-new. Instead, purchase a reliable older car and save a significant amount of money when it comes to insurance.
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  13. Don’t report fender benders – Although insurance companies aren’t a fan of this idea, consider paying for fender benders out of pocket, without reporting it. Even a single accident can raise your premiums, so it may be more cost-effective to you to not report it and instead, pay out-of-pocket.
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  15. Choose a safe car – As a single parent, when choosing a car for your teen to drive, consider something safe – this will not only do the obvious, but will also save you money on car insurance. Sporty cars always cost more to insure, as do larger trucks and SUVs; and single parents don’t need the added expense.
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  17. Safety features are good – Along with choosing a conservative car, look at the safety features as well. Cars with airbags, anti-lock brakes, and automatic seat belts can help make a difference in your insurance premium.
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  19. Car registration – Keep the car registered under the single parent’s name that the insurance is under, instead of the teen. This is a commonly missed factor that can affect insurance rates.
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  21. Drop collision or comprehensive coverage on old cars – If your teen plans to drive an older car, consider dropping the collision and comprehensive insurance. The reason is this: Paying a month premium to maintain these may be much more expensive than paying out-of-pocket in the rare event of an accident.

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College for Single Parents

College for Single Parents

Attending school as a single parent can be difficult. Juggling schoolwork along with parental duties without any additional support may lead to students leaving college without completing their degrees. If you are a young single parent with small children, be aware that many schools recognize this problem and may provide you additional help.

  • Saint Paul’s CollegeLocated in Lawrenceville, Va., Saint Paul’s College is a private Christian educational institution which emphasizes objectivity, integrity, scholarship, resourcefulness and responsible citizenship. Saint Paul’s College also offers the Single Parent Support System, or SPSS, for qualifying single parents. Designed for single parents with two or fewer children between the ages of two months and nine years, SPSS is an educational program for on-campus residential students, which provides faculty mentoring, tutoring and counseling services, educational seminars and childcare. To qualify, students must attend school on a year-round and full-time basis, have a projected graduation date of three to four years and maintain a 2.5 GPA each year.
  • Baldwin-Wallace College Baldwin-Wallace College, located in Berea, Ohio, is a private, Methodist-related, liberal arts college which provides students with learning and career preparation. Baldwin-Wallace College also offers SPROUT, or the Single Parents Reaching Out For Unassisted Tomorrows. SPROUT is a comprehensive program for residential single parents between the ages of 18 and 23. There are several components to the SPROUT program including housing, childcare, personal development, academic concerns and financial aid, all designed to break the cycle of single parents dropping out of college due to difficulty of pursuing an education while being single parents. For more information click here.
  • Endicott College Founded in 1939 for the purpose of educating women for enhanced positions in the workplace, Endicott College, located in Beverly, Mass., is a progressive institution with a mission of instilling an understanding and appreciation for liberal and professional studies in students. The Keys to Degrees: Educating Two Generations Together program provides single parents between the ages of 18 and 24 with the opportunity to pursue a baccalaureate degree in a supportive environment. Students enrolled in the program benefit with full support services, such as childcare and campus housing. For more information click here.
  • Wilson College located in Chambersburg, Pa., is an independent college with a commitment to encourage student growth, human stewardship and ethical leadership. Designed for single mothers with children older than 20 months, the Women With Children Program at Wilson College offers students an education and the opportunity for a self-sufficient life. Students enrolled in the program receive year-round on-campus residential housing and other services such as child care, academic support and counseling. For more information click here.