Financial Checklist for Single Moms

Author Lisa Alther summarized it best when she said, “Any mother could perform the jobs of several air traffic controllers with ease.”

Managing work and raising kids can feel like the world’s greatest juggling act for single moms. Tossing in a bowling ball illustrates the pressure of staying on top of finances on one income with only 24 hours in the day.

For Mother’s Day, we wanted to give single moms a little bit of time back. Here’s a checklist of 5 financial priorities that everyone, especially single moms, can use to start building financial stability today.

1. Pay off High-Interest Debts

It can be tempting to take out payday loans or max out credit cards to get through the day. Unfortunately, these services also come with high costs that can take a long time to pay off. Avoid payday loans and pay back your credit card bill in full by the due date.

Some debts, like mortgages or student loans, are necessary to grow your wealth. Be cautious whenever you take out a loan and make sure that you can afford the terms and interest rates that come with them.

If you have a lot of debt, build a budget that works for your family with room to pay back your debts as quickly as possible. Payactiv offers free 1:1 financial counseling in our app available in the Apple App Store and Google Play if you need support or assistance with your finances.

2. Build an Emergency Fund

Financial emergencies can happen anytime and often cost $1,000 or more. An emergency fund is a great way to keep your emergency savings safe. Financial experts suggest keeping at least three months of expenses. If you’re self-employed, work seasonally, or your schedule changes frequently, consider doubling your savings goal to six months of expenses.

Tip: The Payactiv Visa® Card* comes with optional goal-based saving to help you put money into your emergency fund automatically on whatever schedule you choose. Set up Direct Deposit and get paid up to two days early1. 

3. Increase Your Income

• Ask for a Raise: When was the last time you got a raise at work? Ask your manager to set up a formal meeting or a yearly review. Bring a list of significant accomplishments and how you provide value to the company. There’s never a guarantee that the boss will say yes, or has the power to promote you. But it rarely hurts to try.
• Get a certificate or more education: It’s never too late to go back to school and grow your income opportunities. You might even be able to do it for free. Your unique life experience can help you win scholarships, so it never hurts to apply to as many as you’re able. Companies that want their employees to stay as long as possible often pay for education or training expenses. Talk to your manager about what options are available to help you grow vertically without changing employers.

Tip: Scholarship.com has a long list of scholarships available to single mothers that’s worth checking out if you’re a single mom thinking about going back to school. Community college classes are inexpensive and a great place to start if you’re unsure about what you’d like to study.

• Find a New Job: Studies have shown that changing jobs every three to five years can lead to the highest lifetime income. Some company loyalty is a good thing. But too much can be costly.

4. Invest for Retirement

If you have extra income after paying off debts and saving three months of expenses in an emergency fund, it’s time to put some of that money to work in investments. Investing in an employer-sponsored 401(k) account is a wise idea. If you don’t have that at work, open an individual retirement account (IRA) at the investment brokerage of your choice.

Tip: Find an inexpensive book or podcast on investing from an expert you admire. We have a few Dave Ramsey fans who work at Payactiv (this author included!). 

5. Build good money habits

If you ignore your finances or procrastinate checking your bank statement, you could miss an opportunity to improve your lifestyle. Set a timer for a few minutes a week to create a simple budget and check in on your finances. Building the habit of thinking about your finances can help you and your family for years to come. If you struggle with feeling motivated to budget, try rewarding yourself with something fun to help rewire your brain.

Tip: The SmartSpend feature calculates a budget for you. To use it, link your existing bank account to your Payactiv account, and SmartSpend will tell you how much is safe to spend. 

As a single mom, it’s essential to be kind to yourself and feel proud of your accomplishments to date. Instead of focusing on the past, focus on the present and how you can reach your ideal financial future. Your goals will help guide your financial decisions and motivate you to own your finances. When you stay in control of your money and stick with a plan, everyone benefits.

You’ve got this!