The Federal government has implemented educational grants and assistance programs to benefit single moms designed to end the welfare mom culture and help single mothers return to the work force. To that end, welfare programs for single mothers have been greatly reduced and policies and programs have been implemented to reward single mothers for working.
If you are a working single mother, there are many options available to help defray costs. Help for single moms is still out there, it just may not be as obvious to the general public, however there are many websites where the information on educational grants and assistance for single moms can be found.
Dependent C are Flexible Spending Accounts
This government program allows employers to take advantage of a dependent care flexible spending account as a benefit. The benefit works by taking child care monies out of the paycheck prior to taking out taxes. The worker then claims the money through the Human Resources department by showing receipt of payment for qualifying childcare expenses.
This provides help for single moms, and all families, by offering a savings equal to the end of year tax rate on that portion of their income allotted to childcare expenses. However, if all the monies that were put aside in the fund are not claimed, they are not reimbursed to the employee. Therefore, one has to be careful only to allot the exact or less amount that one intends to spend on childcare for the year into these accounts to take full advantage of this program.
Tax Time
One of the biggest areas where a single mother can benefit is at tax time. At the end of the year the single mother can file as the head of household, earning a lower tax rate, and may even qualify for an earned income credit.
For the single mother to be eligible, one has to have earned income during the year, but beneath a particular level. This credit can add thousands to your tax refund and is a form of government-sponsored support for working single mothers. You can chose to have it show up directly in your paycheck the following year, instead of waiting for the end of year to file and receive the benefit.
Other Help for Single Moms
The Department of Social Services provides the most information regarding educational grants and assistance programs for single moms. They can provide assistance with qualifying and getting into programs like food stamps medical assistance, child support enforcement, and child care subsidies.
The Department of Housing and Urban Development (HUD) offers programs for low-income people in the form of voucher s, section 8s, or first-time homebuyer programs.
In addition, the Federal government offers help for single moms in the form of education grants and loans to help them obtain new skills and get into the job market. Filling out a FAFSA (Free Application for Student Aid) will help determine your eligibility for Financial Aid which will help determine how much aid you’ll receive.
By: Joel Williams
Posts Tagged ‘Single Mother’
Educational Grant and Loan Programs For Single Mothers
April 10th, 2010Single Working Mothers Saving Money For College Education
December 28th, 2009
Financial times are tight when you’re a single mom. When you are a single working mother saving for your kid’s education, it means double duty at not only providing a financially secure and safe environment for your child and yourself, but you also have to think about your future and theirs. There are many ways that a working single mother can provide a sound financial future for their child’s education, but as with some things you may have to look for them.
A good budget is the first place to start when you’re looking at saving for a child’s education. You have to know where the money is coming from by knowing what finances are coming in and what finances are going out. Start with a balance and know how much you have any certain month, and where you want to spend the extra money that has come in. Add extra money say a hundred dollars every month with a part time business. Take that hundred dollar paycheck that can be earmarked and at least twenty percent of it can go into your child’s education fund. Twenty dollars doesn’t sound much like much now, but there are some programs in some states that allow you to put the money into a college savings account like an IRA or a 529 plan. When the child is ready to start college the money would have matured and gained a substantial amount of interest.
Talk to your financial aid officer at school. They are probably knowledgeable about college savings programs. If you have a college picked out for your son or daughter, you can even invest into that college by retaining the tuition at today’s cost instead of paying for the tuition at the cost of the university in twenty years. With the growing interest in obtaining a college degree in America these days, this is your best bet. The ever climbing tuition rates will far exceed any interest you will earn in an interest-bearing savings account.
If you are at a time in your financial life where you get an extra tax refund or some other money, put a good portion of that toward the child’s education account. It’s too easy to go and plan shopping when you have a large amount of cash. It is best to put half the money into the saving account and then go treat yourself. Take yourself and your child on a nice trip that only a single mom and her children would enjoy. Find something nice for the house that you and your child can do together or maybe even spoil yourself some. Go out with some friends and have a good time for an evening but make sure to save and invest some too.
Remember, if you are experiencing hard times going to school yourself right now because of your parent’s lack of knowledge and a savings account, you don’t want your child to go through the same hard times. Set your budget and look at your finances today. Find an account that will have a high bearing interest or a pre-paid tuition program at a local college or university. Without this solid financial planning, you will not be able to cope. Your best choice is to be on your guard by planning for your child’s future, so they can get to school and obtain the education they deserve.
By: Lana Hawkins
