While it is already so difficult for two-parent families manage their finances, it is even worst for single parent families. Finances for single parents can be a nightmare. Balancing child care and finding ways to earn enough money to put food on the table and ensuring a roof over the family are considerations which we often take for granted. How about consideration for buying cloths, transportation and insurance? You can imagine the burden a single parent has to shoulder.

Children of these single parents will find it difficult to comprehend why they cannot have all the luxury that other kids have. This is especially difficult for kids whose parents were recently divorced or deceased. Not only are they emotionally hurt but suffered a decrease in their standard of living.

Here are some money management tips on how to cope while keeping spending low:

* Communication: It is important to sit down with your children to talk about it. Explaining to them of the situation – such as the decease in household income means the required to spent less. Assured each child that is not the only one suffering but all parties are treated equally for the decease in spending power.

* Budgeting: This is even more important since money is now a limited resource. Draw up a detailed budget together with your kids so that they have an ownership in the decision making process. Remember to include all necessities and monthly bills.

* If possible, include a saving plan if there is any surplus left. Have your kids save a portion of their allowance regularly so that it can be used for other things like school field trips, CCA and others. This will teach them to inculcate good saving habits.

* If your kids want something such as buying a toy which other kids have, encourage them to do some “research” like look out for sales (like Great Singapore sale), closing down sales, second hand purchase like eBay. Not only this can save money and you are teaching them to be good bargain hunters.

Keeping a good finance is utmost important for a single parent but it can be especially difficult if the kids do not understand. It is also important not to spend too much on unnecessary finance products such as expensive insurance although having a good insurance plan for yourself and kids becomes an utmost priority for a single parent.