Parenting isn’t an easy task, especially if you are a single parent. You have to consider many things to ensure a secure future for your child. So if you are a single parent, in this article, we will discuss how you can prepare a budget for your family and secure a good future. In 2021, 40% of marriages in Canada ended in divorce, with money being the top reason for divorces, followed by cheating and other stuff. We understand divorce can be difficult to deal with and often can lead to serious traumas and makes life difficult. As a single parent, you often need to deal with a plethora of emotions, yet you have to take care of your child and tell them everything will be okay! Often at the starting, it may feel like a mountain of responsibilities on your shoulder. Still, for the sake of your child, you have to keep up with all the responsibilities and make sure you provide them with all the necessary things essential for their well-being. Moreover, you also need to take care of your health. Of course, as parents, you are self-sacrificing, but you also need to be in a healthy condition to take care of your child. We may not be able to help with other factors in your life but can surely assist you plan a budget that will help you secure your family’s future. Step-by-step process to create a budget Analyze your financial position Before starting with any budgeting, analyze your current financial standings. Understanding your current income and expenses is important to create a budget. You can write all your expenses in one place and income opposite to it and check the money flow. In accountancy, a balance sheet is often used to display assets and liabilities together, which gives companies a brief, clear idea of their finance. Below is a standard format of the balance sheet you can use to list all your incomes and expenditure.
- S.no Income/Investments Amount Expense Amount
- Increase sources of income
- Get an Insurance
- Tax benefits
- While paying taxes instead of “Single,” file as “Head of Household.” You may be able to earn a higher standard deduction if you meet the criteria.
- You can claim child benefits for each child.
- You can claim the unused tuition fee if your child is in post-secondary school.
- The goods and services tax/harmonized sales tax (GST/HST) credit is a tax-free payment that helps low- and moderate-income families balance all or part of their GST or HST payments.
- Get help