There is a common belief that single parents are never financially strong and are often marred with debt. However, if you consider whether a married couple or single parent is better off financially in a more considerate manner you will see that it often comes down to one factor.
Ideally, it is thought that a married couple always ‘lived happily ever after’ because of the simple reason that they own a home, save more and invest more judiciously together as compared to their single parents.
However, all marriages may not always end up like a fairy tale though they have a few significant financial advantages. According to a new survey, more people are flying solo as they feel that remaining single has its virtues. However, the only area of concern for the single parent is money that can really make life of the person as well as the child potentially more difficult.
What is more surprising is the fact that surveys conducted by reliable firms such as TD Ameritrade shows that interviewing about 2,000 people of 37 years or older half of which are married and the other half single, highlighted that for both financial stress is the most significant concern in their lives. The married people even suggested and pointed out a few areas in which the singles are better off and can even level the playing field.
Data to prove
Much to your surprise the data from the survey showed that there are quite a number of single parents who are financially secure. Though the number is significantly low as compared with their married friends, this shows that the common belief that all single parents live in poverty is therefore nullified.
- Their financial status is substantiated when their bank accounts and paychecks are reviewed though even in this case the annual income of single parents as compared with a married couple is considerably less.
- On the other hand, those single parents that complained about financial stress usually spend their entire paycheck every month. They did not stock away any thing as savings though they are not alone regarding this matter. The married couples too have this habit though their rate is slightly lower than the single parents.
- When both are compared it was also seen that 27:39 is the ratio of the two that have an emergency fund dedicated as a backup in case of any critical conditions.
When it comes to home ownership, the study revealed that single parents are much less likely to own a home than the married couples which is about 58 percent to 90 percent.
Economy of scale
Whether it is buying a home by the married couples or by a single parent with the help of a partner creates an economy of scale. Partnered adults or married couples have a higher median household income as compared with the people who are going and living alone.
- Apart from that, when it comes to the energy and utility bills, it is a lot cheaper when two people split these expenses. Same goes for insurance bills, monthly payments of dues and other bills that need to be paid to live anywhere.
- This money saved by each of the partners can be redirected to other useful areas such as retirement of each. Such home runs for the single parents are hard to come by if not at all. However, not all solo flyers are so impractical because the study shows that 44% of singles are planning for retirement though the percentage is significantly higher for the married peers.
- On the flip side, there is also the fear of running out of money in retirement by both married as well as singles and once again the ratio between the married couple and singles is 38:46. Moreover, it is seen that there is a desire in the singles to retire but they still believe that they will not be able to afford it just the same way a married couple can.
When it comes to navigating the daily finances life it is much easier when there are two persons doing it as compared with the singles. Not only they can split the bills but can also enjoy the benefits of insurance discounts and tax breaks when they file for it jointly.
Change in plan
Everything is not bad in being a single parent or remaining single only if you plan it well and make a few chances in your current attitude and lifestyle. You can handle your finance with finesse by making a few changes in the system as advised by the experts. All you have to do is:
- Save for your retirement early
- Cut housing cost by living with your relative or by getting a roommate
- Cut down on your unnecessary expenses
- Set up an emergency fund today and
- Follow buddy budgeting with a friend to keep your spending in check.
These steps will not only help you save money for your retirement but will also help you manage your debts that you may have. You will not fall behind your monthly bills and not have to search for resources like nationaldebtreliefprograms.com to get some grants and benefits to get some relief from your financially stressful conditions.
Money management tips
Since the married couples have one another to discuss and consult about the finance and debt management they may not need any expert help. As for a single parent there is ample scope to commit an error being all alone.
There are several websites that offer money management tips for single parents. You can follow anyone of it to alleviate the day-to-day financial pressure of managing your family and raising your child alone. They will help you to make a proper budget and plan so that in the end every penny counts.
Make the best use of technology and get the right software program to track and monitor your income and expense. This is the first thing in managing your finances effectively but do not go overboard and spend money on software as there are several of these programs available for free in the internet.