11 Best Ways To Survive Financially As A Single Mom

Itishree Parmar
January 31, 2022
11 Best Ways To Survive Financially As A Single Mom
11 Best Ways To Survive Financially As A Single Mom

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Imagine a world where single mothers could confidently navigate the financial landscape, free from the burdens of poverty and uncertainty.

A world where they could embrace their role as providers for their children without fear of financial hardships holding them back. Today, in 2024, the world is within reach, and we’re determined to make it a reality.

As the statistics paint a grim picture of the challenges faced by single mothers, with a staggering 80% of single-parent families headed by single mothers, it breaks our hearts to learn that approximately 1/3rd of these families live in poverty.

But we refuse to stand by idly and let these mothers bear the weight of their struggles alone.

We, at Penny Calling Penny, understand the incredible strength and resilience that single mothers embody.

That’s why we’re here to extend a helping hand, to provide you with a comprehensive guide that empowers you to thrive financially.

In this blog, we’ll share invaluable insights, tips, and strategies that will empower you to thrive financially as a single mom.

11 Ways To Survive Financially As A Single Mom

(1) Building A Strong Financial Foundation

First things first, let’s work on your mindset. It’s crucial to believe that you can achieve financial stability and success. Banish any thoughts like “money isn’t important” or “I’ll always struggle.” Instead, focus on the possibilities and opportunities that managing your finances can bring. Embrace the fact that you have control over your financial future by identifying your short-term, mid term and long-term aspirations.

(i) Short-Term Goals: Enjoying the Present

Now that we’re geared up with the right attitude, let’s set some short-term goals. These are the ones you can achieve within the next few months to a year. For example, plan a well-deserved vacation or a fun outing for you and your kids. Remember, enjoying the present is as important as securing your future. Allocate some funds and set a timeline to make these goals a reality.

(ii) Mid-Term Goals: Milestones and Savings

Next up, we have mid-term goals. These are the significant milestones that might take a few years to achieve. For instance, if you have student loan debt, it’s time to strategize. Consider aggressive repayment methods or explore refinancing options to lighten the burden or, start saving for a down payment on a house, so you can provide a stable home for your family.

(iii) Long-Term Goals: Securing Your Future

Now, let’s focus on long-term goals, which are all about securing your financial future, especially when it comes to retirement. Setting up an Individual Retirement Account (IRA) is a wise move. Research different options like Traditional or Roth IRAs to find the best fit for your circumstances. If you’re unsure, don’t hesitate to seek advice from financial professionals.

(2) Creating A Realistic Budget

Now let’s talk about creating a realistic budget, which is a crucial step in managing your finances effectively as a single mom. By carefully tracking your income and expenses, you can gain control over your financial situation and make meaningful progress towards your goals.

(i) Separate Your Finances

It is important to separate your finances from your partner. If you are a recent divorcee or separated single mother it is important to make sure that you separate your finances from your previous partner. This way you will have more control over your finances and will be better able to manage it.

(ii) List Your Income Sources

To start, make a comprehensive list of all your income sources. This includes your salary, freelance work, rental income, or any other monetary inflows you receive. By having a clear picture of your income, you can better plan and allocate your funds.

(iii) Categorize Your Expenses

Next, categorize your expenses into fixed and variable categories. Fixed expenses include items like rent or mortgage payments, utilities, and insurance, while variable expenses cover groceries, dining out, entertainment, and other flexible costs.

Best Budgeting Apps For Easy Money Management

Consider rethinking your spending by evaluating subscriptions and other non-essential expenses. Adjust your budget accordingly to prioritize necessities and save more effectively.

(iv) Explore Budgeting Methods

Familiarize yourself with various budgeting methods to find one that suits your needs and preferences. Some common budgeting techniques include –

  • 50/30/20 budget (allocating 50% to needs, 30% to wants, and 20% to savings),
  • Zero-based budgeting (assigning every dollar a specific purpose), 
  • Envelope budgeting (allocating cash into envelopes for different expense categories). 

Each method has its own advantages, so choose the one that resonates with you the most.

(v) Utilize Budgeting Apps

Consider using budgeting apps or printable templates available online to help you organize your budget effectively. These tools often provide categorized sections for income, expenses, savings, and financial goals, making it easier for you to track and manage your finances.

Apps like Pocket Smith, You Need A Budget (YNAB), or Goodbudget can be helpful in this regard.

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(3) Build A Budget And Emergency Fund

Life is full of unexpected twists and turns, and having an emergency savings fund is your financial safety net. Aim to set aside three to six months’ worth of living expenses in a separate savings account. Start small, even if it’s just a few dollars each week, and gradually increase your contributions. This fund will protect you from unforeseen circumstances and provide peace of mind, knowing you have a cushion to fall back on.

(4) Protect Your Loved Ones With Life Insurance

As a single mom, it’s essential to have adequate life insurance coverage to protect your loved ones in case of your untimely passing. Life insurance provides financial support to your family and can cover expenses such as mortgage or rent, education costs, and daily living expenses.

Evaluate your insurance needs and consider obtaining coverage that is approximately ten times your annual income. Explore different types of life insurance policies, such as whole life or term life insurance, to determine which one suits your circumstances best. Consult with a qualified insurance professional to understand the options available and choose the right coverage for you and your children’s future.

(5) Start Investing As Early As Possible

Investing is an effective way to grow your wealth over time and secure your financial future. Start investing as early as possible to take advantage of the power of compounding. 

Consider opening a retirement account, such as an Individual Retirement Account (IRA) or a workplace-sponsored 401(k). Take advantage of any employer matching contributions, as this is essentially free money towards your future. 

(6) Start Debt Management

Dealing with debt can feel overwhelming and suffocating, but don’t lose hope! You have the strength to take control of your financial situation and pave the way towards a debt-free future. It’s time to start your journey to debt management and reclaim your financial freedom.

First, gather all your debts and face them head-on. It’s important to acknowledge the weight they carry and confront them with courage. Write down every debt you owe, from credit cards to loans, and any other financial obligations that have been burdening you.

Now, it’s time to develop a strategy to tackle your debts effectively.

Two popular methods to consider are the debt avalanche and snowball methods.

(i) Debt avalanche method – Debt avalanche method involves prioritizing your high-interest debts. Start by directing extra payments towards the debt with the highest interest rate while making minimum payments on the rest. Once that debt is conquered, move on to the next one with the highest interest rate. By focusing on the high-interest debts first, you’ll save more money in the long run.

(ii) Snowball method – Snowball method allows you to gain momentum by tackling the smallest debts first. Begin by paying off the debt with the smallest balance while making minimum payments on the others. As you eliminate each small debt, the sense of accomplishment and motivation will grow, propelling you forward to tackle the larger ones.

(iii) Debt consolidation – Consolidating your debts into a single loan or credit account can simplify your payments and potentially secure a lower interest rate. This approach allows you to focus on one monthly payment, making it easier to track your progress.

Penny Tip: Don’t hesitate to reach out to your creditors and explore the possibility of negotiating lower interest rates or more manageable payment plans.

(7) Generating Additional Income Streams

The rise of the gig economy has created numerous opportunities for single moms to earn extra income on their terms. Consider freelancing, consulting, or offering services in your area of expertise.

Platforms like Upwork, Fiverr, or TaskRabbit connect freelancers with clients seeking specific skills. Embrace the flexibility and autonomy of the gig economy to boost your income and gain financial independence.

Penny Tip: Leverage social media platforms to showcase your skills and attract potential clients. Establish yourself as an expert in your field by sharing valuable tips and insights.

(8) Explore Government-Funded Assistance Programs

As a single mother, it’s essential to explore the various government assistance programs, 

Such as Child Care assistance Program, Energy Assistance Program designed to help individuals in your situation. These programs can provide valuable support with housing, healthcare, childcare, education, and more. 

Begin by conducting extensive research to uncover the available support systems. 

Checkout this blog “Best grants for single moms” to familiarize yourself with the eligibility criteria, application processes, and any required documentation to make the most of these valuable resources.

Alongside government programs, consider seeking guidance from local support groups or nonprofit organizations that specialize in assisting single mothers. These community resources can provide additional emotional support, practical advice, and connections to valuable services.

(9) Understanding Tax Benefits And Credits

Navigating the intricacies of taxes as a single mom is a unique journey, one that sets you apart from married individuals. 

As a single mom, your tax situation diverges from that of others. Take, for instance, the Head of Household (HOH) status you can claim on your W4 if you contribute at least 50% of your household income. This distinction can yield advantages, granting you a lower tax rate and a more substantial standard deduction compared to single individuals or married couples filing separately.

(10) Affordable Housing

One of the most significant expenses for any individual or family is housing. As a single mom, finding affordable and suitable housing options becomes crucial. Here are some tips to help you manage housing costs effectively:

(a) Explore Government Assistance Programs: These programs provide rental subsidies or affordable housing options, helping to reduce your housing expenses. Research and apply for these programs to potentially receive financial assistance.

(b) Roommates and Co-Parenting: Sharing housing expenses with a roommate or considering co-parenting arrangements can be beneficial in reducing the financial burden. By splitting rent, utilities, and other housing costs, you can free up more of your income for other essential expenses.

(c) Downsize or Consider Alternative Housing: Assess your housing needs and consider downsizing to a smaller, more affordable home or apartment. Alternatively, explore alternative housing options like shared housing, tiny houses, or manufactured homes, which can offer cost savings compared to traditional housing.

(11) Practice Frugal Living

Practicing frugal living is a key aspect of surviving financially as a single mom. By adopting smart spending habits and making conscious choices, you can stretch your income further and achieve financial stability. Here are some frugal living strategies to consider:-

a) Meal Planning and Grocery Shopping: Plan your meals in advance and make a grocery list to avoid impulse purchases. Look for sales, use coupons, and consider buying in bulk to save money on groceries. Additionally, cooking at home rather than eating out can significantly reduce your food expenses.

b) Reduce Utility Costs: Be mindful of your energy and water consumption to lower utility bills. Implement energy-saving habits such as using energy-efficient appliances, turning off lights when not in use, and adjusting the thermostat to conserve energy. Consider using public transportation or carpooling to reduce transportation costs.

c) Thrift Shopping and Secondhand Items: Embrace thrift shopping and explore secondhand options for clothing, furniture, and other household items. You can find quality items at significantly lower prices, helping you save money in the long run.


In addition to all the valuable insights we’ve explored thus far, there is a crucial factor that deserves our attention: changing your financial mindset. It’s time to shatter the misconception that single mothers are always destined to struggle financially. It starts with rewiring your mindset, shedding the belief that financial hardships are inevitable. You are capable of rewriting your financial story.

Remember money is not your enemy but a powerful tool that can help you create a better life for yourself and your children.

Take bold steps to educate yourself about personal finance, seek out resources, and surround yourself with a supportive community. Your financial future is within your grasp, and with every stride, you pave the way for a brighter tomorrow. You are capable, you are deserving, and you are unstoppable. Believe it, embrace it, and soar to new heights.


Yes, many government assistance programs are available to support single moms in need. Eligibility criteria vary, so it’s essential to research the specific programs available in your area.

Improving your credit score involves paying bills on time, reducing debt, and using credit responsibly. You can also consider using secured credit cards and keeping credit utilization low.

Frugal living involves budgeting wisely, cutting unnecessary expenses, shopping for deals, and exploring cost-effective options for housing, transportation, and entertainment.

Planning for retirement includes saving regularly in retirement accounts, such as IRAs or 401(k)s, and investing for long-term growth. Additionally, diversifying your investments can help build a secure retirement fund.


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