Kids and Money Archives – Michele Cagan, CPA

Crisis Budgeting: How to Survive Financial Catastrophe And Thrive on the Other Side

04/19/2020
Building a Nest, Get Help When You Need It, Kids and Money, Making Ends Meet, Managing Debt, Owning Your Own Business, Protect Your Financial Future, Single Mom CPA, The Basics

When you’re a single parent, it doesn’t take much to knock you into a financial crisis. Sudden job loss… flooded basement… a sick or injured child… dozens of things can make you dip into and use up your emergency savings. And those financial setbacks can leave you struggling to make ends meet. Lots of times, those events pile on top of each other. And like so many of you, I’ve lived with financial anxiety, and had months where I couldn’t pay all of my bills. When you’re stuck inside a financial crisis, the usual money advice doesn't work. You need…

Save $2,000 Using Head of Household Tax Status…Here’s How to Qualify

01/07/2019
Do Your Own Taxes, Kids and Money, Single Mom CPA

Updated for 2019 You can save more than $2,000 on your tax bill by checking one little box: Head of Household status. That’s why you and every eligible single mom should claim Head of Household (HoH) status… to keep that income tax bill as low as possible. Using this filing status can save you hundreds, maybe even thousands, of dollars on your income taxes. For one thing, the standard deduction using HoH status is $18,000. If you file as single instead, it’s only $12,000. So with HoH, you automatically pay taxes on $6,000 less for a minimum tax savings of…

Getting Divorced? Cut ALL Financial Ties

02/19/2018
Getting Divorced?, Kids and Money, Protect Your Financial Future, Single Mom CPA

It’s sounds drastic: Sever all of your financial ties in the divorce. After all, you were married to this person, you have kids together. And keeping some kind of connection doesn’t seem risky…but it is. No matter how good your relationship is, no matter how well you communicate, you can’t predict the future. Except for this: Things will change. Keeping even a small financial connection – like a joint emergency credit card or an old joint savings account – could end up doing significant damage to your financial future. And so many things could happen with your ex: Health issues…

Why Your Kid Needs a Roth IRA

01/09/2018
Kids and Money, Protect Your Financial Future, Retirement Planning, Saving and Investing, Single Mom CPA

If your child earns income from a job – even if it’s working for you – it’s time to open a Roth IRA. Better than a regular savings account, all the money invested through a Roth IRA grows tax-free. And since your child almost certainly qualifies for the lowest possible tax rate (if income taxes kick in at all) now, he or she will end up paying less in taxes – keeping more of their own money – overall. And unlike other types of retirement accounts, the money your child contributes is accessible without any tax penalties. That means he…

How to Mix Your Business and Your Kids

01/09/2018
Do Your Own Taxes, Kids and Money, Owning Your Own Business, Single Mom CPA

They’re two of the hardest jobs in the world: being a mom and running your own business. For single moms, the difficulty rating gets multiplied…but with a few simple strategies, you can win at both, and teach your kids some valuable lessons along the way. For the pre-school set, childcare is key When your kids are too young for school, reliable childcare makes all the difference. If you’re thinking you can do both – run your biz (even from home) while caring for young children – think again. It’s nearly impossible to do both well. Sure, having your own business…