Single Mother Guide

Grants for Single Mothers

Last updated: May 17, 2012

Imagine what it must be like to live on a mere $21 per week worth of food. Budgeting just $3 each day is a virtually impossible task that sadly is a reality for the poor, disproportionately single mothers & their children.

In today’s stalling economy, it wouldn’t be so hard to imagine the plight of single women raising children alone. Not to mention the many stigmas attached to them as “welfare queens”.

And yet the rate of single motherhood has been steadily increasing over the past years. The recent statistics show that in 2011, out of approximately 11 million single-parent households in the U.S, more than 85% were headed by a female – sadly, the majority still live in poverty.

To help them cope with the brunt of single parenting, Uncle Sam extends financial help in the form of grants for single mothers that are granted on the basis of financial hardship. Qualified applicants are entitled to free access to basic necessities – food, medical care, shelter, education, etc.

If you’re a single mom in need of “a helping hand”, given below are some of the free government grants established to economically support you & your family.

Temporary Assistance for Needy Families (TANF)

  • Designed to help needy families achieve self-sufficiency.
  • Assistance comes in the form of monthly cash allowance.
  • A maximum of 60 months of benefits, but some states may institute shorter periods.

Children’s Health Insurance Program (CHIP)

  • Administered independently by each state.
  • Provides low-cost health insurance to children up to age 19 who is ineligible for the state’s Medicaid program.
  • To apply, make a free call to 1-877 KIDS NOW (1-877-543-7669)

Low Income Home Energy Assistance Program

  • Federally-funded program that helps low-income households with their home energy bills.
  • Other assistance includes energy-related home repairs, weatherization, and energy crisis assistance.
  • Call the toll-free phone number at 1-866-674-6327 or contact LIHEAP State Agencies for more info.

Women, Infants and Children Program (WIC)

  • Free coupons for single, pregnant mothers and children under 5 years of age who are considered to be “at nutritional risk”.
  • Priority is given to those who are eligible to receive Temporary Assistance for Needy Families (TANF).

Supplemental Nutrition Assistance Program (SNAP)

  • Also commonly known as “food stamps”.
  • Aims to provide affordable and healthy meals to the low- to no income families.
  • Qualified applicants include single mothers, elderly or disabled, homeless and the unemployed.
  • Eligibility is based on family income.

Section 8 Housing Program/ Housing Choice Voucher Program

  • A federal program assisting the neediest families to afford safe & decent rental housing.
  • Application must be filed through the local offices of PHA or Office of Public Housing.

National School Lunch Program (NSLP)

  • Free lunches or discounted meals will be provided to eligible students whose family income falls below certain “poverty guidelines”.
  • Interested parents may check details at www.fns.usda.gov or contact the school to fill out a school meal application.

The Federal Pell Grant

  • Free money for the neediest students to pay for college.
  • The maximum amount Pell Grant award for the 2012-2013 academic year is $5,550.
  • This grant requires the applicant to complete a Free Application for Federal Student Aid (FAFSA) form. Learn more!
  • Single mothers who suspended their education upon pregnancy may also apply.

The Federal Supplemental Educational Opportunity Grant

  • Granted only to those with “the utmost need” for educational financial assistance.
  • Annual stipend to a maximum of $4000 – the amount received depends on the student’s financial need.

Bear in mind that though these assistance are meant for helping you tide over difficult times, you should not rely solely on them, you should rather ensure that you strive to become self-sufficient so that you can provide for your family on your own.

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College Financial Aid For Single Mothers

Last updated: May 18, 2012

The cost of attending a private, 4-year institution is well over $20,000 for each school year. This does not include books, living expenses, transportation and personal expenses.

At a time when a college degree is more important than ever before (presumably with the understanding that a degree equates with higher earning power in the future)1, and with the steep rise in the cost of college, few could afford the price tag on a post-secondary education.

Let alone single mothers who are struggling to “make ends meet” on a shoestring budget.

For these moms, higher education may seem unattainable without generous financial aid which may come in many forms, from grants and scholarships, which do not need to be repaid, to loans, which do need to be repaid with interest upon graduation. There are also a host of tax breaks aimed at helping them pay for college.

Institutional Aid

Also known as college aid, institutional aid is provided by the individual colleges and universities. Early in the application process, you’re expected to fill out CSS PROFILE form in addition to, or instead of, the FAFSA form.

This process helps colleges calculate the amount you are expected to contribute to your college expenses and determine how much aid will be allocated to you. Since institutional aid is extremely limited, it is often reserved for students with the most financial need.

Although a college’s financial aid is available, you may likely be left with an amount that is still unaffordable. It isn’t uncommon for students to seek assistance outside of colleges’ financial aid offers – primarily federal student grants, scholarships and private loans.

Federal Grants

Alternatively, single moms who demonstrate financial need have a better shot at applying for a federal grant. This federally-subsidized money does not need to be repaid, making it a more attractive option than a loan.

A common federally subsidized grant is the Federal Pell Grant with a maximum amount of $5,550.

This is the largest need-based student aid program allotted to the country’s neediest students. So you need to prove you can barely afford the cost of “going back to school”.

To apply for a Pell Grant, you must complete the Free Application for Federal Student Aid. Applying through FAFSA is the first step to receiving THAT free aid.

Federal Work-Study Program

This is a program where students with little or no monetary resources can get part-time work on- and off-campus, up to a certain amount, and have 75% of their wages reimbursed by the federal government.

If you qualify for FWS aid, your salary may start at the prevailing federal minimum wage but may vary with job requirements, skill, and experience levels.

Keep in mind, however, that this option isn’t meant for everyone. Unless you have minimal living expenses and family support to look after your child while you’re away, look elsewhere!

Scholarships

If federal aid disappoints, scholarships are a chance at “free” money, awarded by private institutions, nonprofit societies, or charitable organizations. Similar to grants, scholarships do not have to be repaid.

On the national level, scholarships are the most generous but also the most competitive. At local levels, scholarships are easier to grab given the smaller pool of applicants.

Please refer to the Student Aid on the Web for a list of recommended scholarship databases where you can search for any scholarship opportunities that meet your specific criteria.

Federal Loans

Loans are essentially borrowed money you must repay with interest. Federal loans, which are issued directly by the federal government, are more attractive than loans from banks and other private lenders as they offer lower (fixed) interest rates and have more flexible repayment options: you can do deferments and forbearances.

The loan can either be subsidized, which doesn’t require you to pay any interest while you are still in school (as the government pays your interest), or unsubsidized, meaning it does accrue interest while you are still in school but you can defer payment until after graduation.

Subsidized or unsubsidized, loans may be the only way to go if institutional aid doesn’t cut it and no scholarships or grants are available for the taking. But still, it is advisable to first exhaust the federal options before considering a private loan.

Private Loans

Unlike federal loans, private loans have a higher maximum borrowing amount. On one hand, this is advantageous in that students have more flexibility in borrowing as much as is needed.  However, the freedom to borrow large amounts can lead to financial disaster.

Remember, the less money you borrow, the less you’ll have to pay back after you graduate. So be a responsible borrower and treat it [private loan] only as an option of last resort.

  1. Source: Women in the Labor Force in 2010 [↩]

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Unemployment: Mother’s Day Gift for Many Single Moms

Last updated: May 17, 2012

Mother’s day may be half a week over, but it is nonetheless a reminder of the value that these women provide for both their children and their country.

And yet here we are with a 15% unemployment rate in 2011 for unmarried, divorced or separated moms. That’s about 1.2 million single mothers with children under 18 years old who wanted a job but couldn’t find one.

Now I won’t come up with reasons for the high unemployment. The usual culprits – discrimination, labor-service jobs and lack of financial support – are still there. Heck, I and a lot of pundits over the news have discussed those factors to death.

What I am going to talk about is what we can do to help alleviate the financial plight of single-mother families around the country.

Of course we have the effects recession weighing down on the shoulders of everyone. Grants and welfare can are only short-term solutions to a problem that has long been dragging everyone’s feet down. The only real solution to our dilemma of un- and underemployment is to find some way to promote economic growth, meaning better and healthier businesses to spread more jobs around.

While you’d think that only the government and big corporations are capable of doing this, you would be surprised at the role small businesses play in creating jobs in the market.

That little corner store, those online merchandising shops and strange shops you know virtually nothing about make the small business sector of America. They’re small and probably unnoticeable by their own, but they are an economic powerhouse when taken collectively.

This is why I encourage single moms to establish small businesses of their own – whatever these businesses may be.

Why? Well, stereotypes or glass ceilings will mean little if you run your very own business. As the owner, you’re able to dictate how well the business goes. Finding and meeting the needs of the local community can be very financially rewarding if you know what you’re doing.

And then there is the other thing you can do – vote.

An increasing number of politicians are leaning on single mothers for political support. Finding these politicians and voting them into place will make sure that we get better laws and policies that protect their own interests. The next thing is to encourage others to vote, no matter how busy they are in life or indifferent they are about politics.

Create your own job and support the politicians that care about single moms – that’s the only real way we (single mothers) can beat the unemployment statistics for good.

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Temporary Cash Assistance for The Poor

Last updated: May 15, 2012

Single-mother families are worse off than any other type of household with slightly over 40% of single-mother households are officially below the poverty level.

It comes as no surprise that many are homeless and unable to afford even the basic necessities like food & day care.

Uncle Sam funds a large range of welfare programs for needy Americans, from food stamps to Medicaid. And TANF often becomes a source of safety net for these families while they get back on their feet.

What’s TANF?

TANF or Temporary Assistance for Needy Families1, as the name implies, extends temporary financial assistance to families that are living on income far enough below the poverty threshold.

The grand idea is to offer short-term assistance, with the aim of helping them get off of welfare – primarily through employment.

TANF provides monthly cash stipends via Electronic Benefit Transfer (EBT) which is used like a bank debit card to pay for rent, day care, and even for the purchase of food.

The catch is, you’re expected to participate in work activities for an average of 30 hours per week & gain employment no later than two years upon receiving assistance.

To count toward the work requirement, you must participate in one or more of the following:

  1. unsubsidized or subsidized employment,
  2. on-the-job training,
  3. community service,
  4. up to 12 months of vocational education, or
  5. provide child care services to individuals who are participating in community service.

Failure to comply with the work rules will have your benefits reduced or revoked.

TANF Eligibility

Eligibility for TANF depends upon one’s income & the total no. of dependents in the household. Women who are in their last trimester of pregnancy may also qualify. And since it is a state-administered program, each state is given wide discretion over eligibility, benefit levels & time limit.

Under TANF, the maximum time a recipient could receive this assistance is five years (60 months), although many states adopt shorter time limits.

Since it does not last long, you should not rely solely on “welfare income”, rather, you should ensure that you strive to become self-sufficient so that you can provide for your family all on your own.

As the saying goes, “Work is always better than welfare.” So make sure you use the program only as a last resort.

  1. Formerly known as Aid to Families with Dependent Children (AFDC) [↩]

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The Pell Grant — America’s Largest Source of Student Aid

Last updated: May 15, 2012

With skyrocketing tuition, one major concern for students who want to pursue higher education is how to pay for it. The burden is not surprisingly heaviest on lower-income families – particularly single mothers.

Few could afford the price tag without generous student aid that may come in the form of Pell grants and federally-subsidized student loans.

The Pell Grant program is the America’s largest student aid program.1 It provides grants of up to $5,550 to the nation neediest students to attend college.

This need-based grant offers one way for single mothers of limited means to “go back to school” and be re-educated. It is awarded based on one’s financial need & does not need to be repaid.

But how much you’re eligible to receive hinges upon 2 factors

  1. How much you’re expected pay out of your own pocket – taking into account your asset & income.
  2. The cost of attendance at your college – tuition, fees, room and board, books, etc.

Other factors that determine your Pell Grant eligibility include the amount of time you attend college (whether you are a full time or part time student;) and the number of semesters you will attend.

How to apply for Pell Grant?

To be considered for a Pell Grant, you must submit a Free Application for Federal Student Aid (FAFSA) online at www.fafsa.ed.gov. The deadline for filling the application form for the 2011-2012 school year is June 30, 2012.

The U.S. Department of Education uses a standard formula to evaluate the information you supply when applying for FAFSA. This formula produces a number called the Expected Family Contribution (EFC), which determines (if any) how much aid you’re eligible.

What it actually means is the lower your EPC, the more financial aid you’ll be awarded.

For the 2011-2012 academic year, the maximum Pell Grant is $5550 and if you’re a full-time student, the minimum grant you might be entitled to is $555.

Although the Pell award isn’t exactly a princely sum, it does help many single moms who couldn’t otherwise afford the full cost of college continue their college education and open doors to more opportunities for better paying jobs.

As the cost of college outpacing the availability of aid, many are relying on federal loans to help pay their way through college. Unlike grants, loans are “borrowed money” you must repay with interest, albeit lower than most conventional loans.

Until the government could better package financial aid, borrowing money from the government to pay for college can be a sensible option; as long as you do it wisely.

  1. In 2011 alone, the U.S Dept of Education handed out 34.8 billion in Pell Grants. [↩]

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Gender Pay Gap Still Exists to This Day

Last updated: May 9, 2012

Nearly half of all US workers are women, with two-thirds of all mothers bringing home some or all of the bacon at the end of the day and one in four families headed by a single parent. Even in married families earning $200,000 or more a year, nearly three in four wives were part of the working labor force in 2010.1

So why is it that women earn 77 cents for every dollar her male counterparts earn?

All these statistics have been provided by the Department of Labor’s Bureau of Labor Statistics, and all point to gender equality in the workforce. Sure, we have come a long way from the mid-70’s, where women earned 59 cents to the men’s dollar, but the progress made in labor equality over the past decades has stalled.

So what causes this gap in the first place? Is it all about sexism or is there something else to explain the man/woman gap?

For starters, around 50 to 60% of the gap is due primarily to the differences in the different kinds of work out there. Women have filled up traditionally low-paying jobs, which could explain why the statistics paint such a grim picture of gender pay.

Then an additional 10% of the gap can be attributed to the attitudes of women when it comes to care.

This is especially true for single moms. They are forced to limit time at work to prioritize their children. Women are also more likely to take unpaid sick leaves to take care of ailing children, parents or partners – a major factor when totaling annual payrolls. These situations make it less likely for women to get raises or promotions, effectively creating a vicious cycle that is difficult to break out of.

But what about the remaining 30-40% of the reasons why women earn less than men? The reasons for this remaining discrepancy have yet to be revealed by hard statistics, so we can’t say for sure what they are.

But I’ll bet you this has something to do with either the lack of sick leaves available to women or that old problem called sexism.

  1. Source: Bureau of Labor Statistics [↩]

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5 Money Tips for Single Mothers

Last updated: May 15, 2012

For single moms, it can be especially difficult to juggle full-time parenting with a full-time job. For many, it’s one heck of a challenge to find the time to devote to long-term financial planning.

Today it is more important than ever to learn how to better manage your cash and making sure your children are well cared for.

And here are a few simple tips to help you get started:

Know the difference between “needs” & “wants”

“Needs” are what you need to live – a roof over your head, food & water, basic health care, clothing, etc. “Wants” include everything else you desire to have, but you don’t need to survive.

Knowing how to differentiate the two helps get your spending under control. Sure, you can treat yourself to some “wants” along the way, but do so when you can afford to.

Always keep track of where your money goes

Money has a weird habit of disappearing if you don’t keep an eye on it. This is why you have to be completely aware of how much money goes in and out of your reserves.

Simply taking time at the end of your day to write down the day’s expenditures can help a lot, and can give you a solid idea of how much money you really spend on a weekly basis.

Those lattes and packs of cigarettes can add up over time, so taking a look at the big picture will help put things in perspective for you. And more importantly, you need to ask yourself, “Does it make sense?”

Get better coverage insurance

You are the breadwinner, and chances are your family will be in serious financial trouble should something happen to you – but not if you are adequately covered.

The first and most important is health insurance that covers diseases like uterine cancer and conditions caused by pregnancy. This is because you are more likely to be downed by these illnesses than by an accident, so get a plan that covers you against those.

Getting life insurance for your kids is a must too, as your children could be in a lot of financial trouble should the unimaginable happen to you.

Take advantage of tax breaks

Believe it or not, Uncle Sam does have some useful tax breaks that can significantly lower the amount of taxes to pay. If you qualify for “head of household” status, you can get a more favorable tax rate than if you’re filing single.

For example, in 2011, taxpayers who use the head of household filing status may receive an $8,500 annual standard deduction. While, a single filer is only entitled to a $5,800 standard deduction.

[read more]

Always prepare for a financial emergency

It is tempting to spend a lot to make life more comfortable for you and your children, but the fact remains that you will need money should something unexpected happen to you.

You car could break down, your child could fall sick, a burglar could break into your home and a lot of other nasty – and expensive – things could happen. This is why you have to allocate money for unexpected expenses in your account.

At least one year’s worth of your salary is a decent enough amount, although it is still a good idea to set aside 20% or more of your earnings. Any financial windfalls you gain should then go to this account just in case money comes up short later on in life.

Keep these tips in mind and you’ll be able to smoothly ride any financial bumps down the road of life!

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Youth Programs: Out of Crime and Into Society

Last updated: May 9, 2012

The average juvenile delinquent costs around $100 to $350 to handle. This includes the administrative costs of probation to residential placement in private or state institutions.

Now multiply this amount to the hundreds of juvenile delinquency cases in a single state alone and you can easily sink millions of dollars a week just to care for these kids.

And that calculation does not include the damage these children will cause when they grow up to be full-fledged gangbangers – not to mention the emotional, social and psychological damage they inflict upon themselves.

Texas Chief Juvenile Probation Officer Mark Williams, however, believes that we need to tackle the issue even before it causes any real damage.

He says that it “costs so much less to fix the problem from the front than the back end,” which is another way of saying that prevention is easier and less taxing than the cure. Williams emphasizes that delinquent behaviors are much easier to curb if corrected earlier.

The only problem is getting legislative and financial support to allow groups to help children at risk of delinquency. “A lot of times, we have kids out there who have issues, but we can’t start working with them until they’re 10 and they violate the law,” says Williams.

This is why the Texas Juvenile Justice Department was created in a 2011 legislative session. It is the result of a ‘merger’ between the state’s Youth Commission and Juvenile Probation Commissions. The resulting administrative savings are then diverted to focus on the prevention of juvenile delinquency even before it manifests itself.

Part of the answers formulated is by involving young offenders in art and music, teaching them to better communicate with their families and even showing them how to dress snappily for job interviews. You would be surprised at how a simple piano class, boxing lesson or career workshop can turn the life of youth offender around.

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Debunking the Common Myths of College Aid

Last updated: May 4, 2012

So let’s say you’ve handed in your FAFSA and that you qualified for a loan or a grant. Now you are looking at an award letter saying that you are eligible for financial aid. Hurray!

But do you know what’s what when it comes to the actual aid you just received? Here are a few myths about college financial aid that you need to be aware:

Awarded student aid is automatically deposited to your tuition.

FALSE! The loans/grants/scholarships all have terms that you must first agree upon. Once you have done this, you must then send a letter of acceptance (and anything else required of you) that is written according to the instructions laid out in your award letter.

Student loan aid lowers the cost of college.

FALSE! Loans are loans – they have no effect on the tuition you’ll pay off. The only time you get a free ride is if you are eligible for a grant and/or a scholarship – both of which have catches as well.

Awards are “the same” each year.

FALSE! The funds stipulated in the award letter you receive are enough to cover you for one school year at the most. You need to keep reapplying every year. You could even find yourself out of aid as early as the second year of college because many more colleges finance freshmen than those in the upper years.

You should take out as much student loans as you can afford.

FALSE! The maximum amount of money you should take out should be less than a year’s worth of your predicted annual salary. Take out more than that, and you will end up choking on debt that you can’t discharge with bankruptcy.

Lots of students get “free” college education.

Completely and utterly FALSE! The vast majority of students – 99.7% at the very least – still have to fork over some of their own money to pay for college. Only a meager 0.3% of all enrollees are eligible for grants and scholarships to cover their entire education.

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The Effects of Child Care on Children’s Social-emotional Development

Last updated: May 5, 2012

This report reviews findings from the 30-year body of research evaluating the effects of non-maternal child care (day care) on children’s social-emotional development by Jenet Jacob Erickson, Ph.D.

via familyfacts.org

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Foreclosure Prevention Counseling Could Save Your Home

Last updated: May 3, 2012

Don’t let your pride get the better of you – foreclosure prevention counseling could mean the difference between saving your home and slipping into foreclosure.

But what exactly should you expect in the counseling process?

Here’s the short version: you explain the circumstances why you can’t make your payments, and the foreclosure counselor shows you what options you have available at your disposal while giving you advice on how to better manage your finances.

Foreclosure counselors can also connect you with legal, financial and government sources of assistance if you are eligible to receive any of these resources.

Considering that there are numerous state and federal-sponsored housing finance programs that can help provide cash assistance – like the CHFA for instance – it is definitely worth seeking the knowledge of foreclosure counselors to help get you out a fix.

Now while most counselors are legitimately trying to help out their clients, you do have to remember that there are still some rotten apples mixed in with the bunch.

Here are a couple of signs that you are looking at the wrong kind of counselor:

  • Requests fees. The HUD pays foreclosure prevention counselors so you don’t have to, so always look for HUD-sponsored counselors in your area.
  • Asks for property-related documents. A counselor has no business handling any kind of document related to your property. Legit counselors don’t need this information to help you with mortgage payments.
  • Goes with an “I’ll handle it for you” approach. Legit counselors point you where to go. Be wary of counselors who promise to magically resolve your foreclosure problem – especially when they ask for money or documents to do so.

Just remember that foreclosure prevention counseling isn’t a sure-fire solution to your problems. If the situation is irreversible, then you might eventually be forced to grit your teeth and go through foreclosure after all.

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