Five Tips for Saving Money For Single Moms (and Dads)

Tip Number One: Pay yourself first. If your company has a 401K program, take advantage of it. Put in as much as you can possibly afford. Not only are you not taxed on the amount you contribute, but the savings really add up. And since the money comes out of your check first, you never see it; hence, you don't spend it. Try to save about 7 percent. Some companies match dollar for dollar, some only up until a certain amount. But whatever they give you is like getting "free money." So take advantage.

In addition to, or if you don't have a 401K option, open an account at your bank; a savings account. Have the bank automatically deduct a certain amount from your checking account each month towards this account and DON'T TOUCH IT. This money is for a rainy day. And someday, if it's monsoon season, you'll be grateful you had it. Look at this deduction from your checking account as a bill that has to be paid each month...to yourself.

Tip Number Two: Skip the car loan. Okay, you're a single mom and you need a reliable car to get around places with the kids; one that won't break down. What makes you think a new one won't break down? Instead, go to the dealer and find something you can afford to pay CASH for, even if it's a beater. Get some sort of warranty. Know any mechanics in the neighborhood? Make good friends with them; a lot cheaper than going to the dealer when something goes wrong. You should also buy a regular old "beater," as a second car, just in case Car Number One breaks down. You'll not only save a lot of money on car loan interest (a car is just about the worst investment you can make; you pay a lot of interest for something that depreciates in value, especially a brand new car), but you'll save on insurance as well. You don't need collision; just liability. Saves a fortune.

Want to keep the car in good shape? Get the oil changed every few thousand miles at a place like Jiffy Lube. The oil is like the blood to a car. Just because it's an old car and paid for, treat it like a new car. And take care of it. It will last you and best of all, it's paid for.