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We've been hearing economists' warnings of an impending recession for a few years now — yet the job market, stock market and real estate markets remain strong. What's the deal?

I just Googled on April 4, 2025, “recession?” into Google News, and these headlines came up top:

Trump’s tariffs could push America — and the world — into recession [CNN]

One of the Fed's top recession alarms sends 2008-style signal [Reuters]

Fear that Trump tariffs will spark recession wipes out more than $2 trillion in value from US stocks [AP]

In short: It's coming. In any case, many people are still very worried about an economic downturn, which will be inevitable, at some point (if history is a predictor).

This post will address two major issues:

• How do you prepare for a recession, and
• How to survive a recession

The goal is to help you prepare for a higher chance of unemployment, investment losses and general financial instability, help you if you are living paycheck-to-paycheck, and have trouble paying your bills.

Rules for weathering a recession are good to follow no matter the economy, and come down to these points:

Spend less, save, and earn more money.

Keep reading for specifics:

First: What is a recession?

• What does a recession mean for the average person?
• How long do recessions usually last?

How to prepare for a recession

1. Create a financial plan now
2. Live frugally always
3. Have a savings cushion and build up your emergency fund
4. Sell stuff you don't need
5. Get a side gig to ensure multiple streams of income
6. Prioritize and pay down debt
7. Avoid or delay major purchases
8. Invest in yourself by learning recession-proof skills
9. Identify support systems/network

How to survive a recession if you still have a job

1. Have a financial plan — don’t just wing it!
2. Start or build an emergency fund
3. Invest in training, education, networking and building your career 
4. Create a budget and otherwise double-down on frugality
5. Manage your debt 
6. Delay major purchases like a car or appliance 
7. Sell unwanted and unused items to make extra money
8. Consider starting a side gig for extra income
9. Create a network — personal and professional

How to survey a recession if you lost your job

Economic recession FAQs

Bottom line: You can survive a recession and thrive afterward if you take action now

What is a recession?

The definition of a recession is a downturn in the economy. On a broader scale, this means that businesses lose money and industry produces less product for two quarters — or six months — in a row.

What does a recession mean for everyday people? Recessions are typically marked by:

• High unemployment rate
• Wages that do not go up
• Lower housing prices
• Downturn in stock market equities and other investments

There have been 10 official U.S. recessions since the S&P 500 was established in 1957.

The worst S&P 500 decline was in 2010 during the Great Recession, when the index plunged 55% below its previous peak in March 2009. However, the average S&P 500 decline during post-World War II recessions is 29%.

What does a recession mean for the average person?

Here is what happens during a recession, how a recession affects you, and what you can do today to prepare for a recession, including securing your finances and career:

1. Prices increase

Consumer prices and inflation can increase for any number of reasons, and typically a combination of natural resources scarcity, supply chain issues, and typically interest rate increases.

The U.S. Federal Reserve (and its counterparts globally) intentionally increase prime interest rates when they believe that consumer spending is getting out of hand — a way to reign in overzealous purchases large and small.

2. Individuals spend less

Consumer spending accounts for two-thirds of the U.S. economy, leading policymakers and economists to keep a close eye on any signs that people are shopping less, or shopping differently.

Common sense dictates that when individuals are worried about their jobs and investments, they spend less on everything from food, to new homes and cars, and discretionary items like travel, gifts, home furnishings, electronics and clothing.

23 sites like Craigslist to buy or sell stuff

3. Businesses cut back spending in an effort to increase or maintain profits

During a recession, the lower consumer spending means that businesses of all sizes have to find profit by lowering costs — and they already are, according to a survey by business finance software firm Ramp, released in July.

Lower business spending can impact your own company or employer if you sell to businesses. It also means that payroll expenses are at risk …

4. Hiring stops or slows, raises and bonuses are tightened

When businesses suffer lower revenues and profits, worker pay is often the first to be scrutinized. Layoffs become more common and severe, and new hires earn less than before, and raises and bonuses tighten up.

5. Governments have less tax revenue to invest in their communities

Local, state and federal governments coffers depend on income, sales, business and real estate taxes. When individuals and businesses suffer, so, too, do their governments — and the community programs they support.

6. Stock market suffers

The stock market, government debt, and home prices all continue to suffer under these economic pressures. Consumer and investor confidence waivers and the stock market goes into a dive.

You may have noticed that your retirement or investment portfolio has been up and down dramatically over the last year. If you have a large stash of cash, you may consider waiting until a drop to buy equities, or at least spread your purchases over several months to reap the benefits of cost-averaging.

How long do recessions usually last?

Molly Ward, a certified financial planner with Equitable Advisors in Houston, says there isn’t really a “typical” recession because no two are identical. 

For example, there was a two-month recession during COVID, while the longest recession since 1960 — which occurred from 2007 to 2009 — lasted about 18 months.

How to prepare for a recession: All the things you can do right now

1. Create a financial plan now

Money impacts nearly every part of our lives. When we’re stressed about finances, our families, our relationships, and even our physical wellbeing suffers. If you get on top of your finances before a recession, you can maintain power over your life. This includes:

• Budget
• Savings + investing plan
• Goals for earning more

Read: 9 ways single moms can make money and build wealth

2. Live frugally always

If you want to achieve and maintain financial stability, spending frugally is a big part of the equation. Start by tracking your usual expenses, then figure out where you can cut spending. Commit to meal planning instead of dining out, cancel recurring subscriptions you no longer use, and curb unnecessary shopping. 

These habits will serve you during any economy.

Read: Easy, affordable meal planning tips for single moms

3. Have a savings cushion and build up your emergency fund

A Federal Reserve report found that about 40 percent of Americans wouldn’t be able to cover an unexpected $400 expense. If you don't have one, start an emergency fund so you have extra money even if you get laid off. 

A stash of $1,000 is a good place to start, and aim for at least 3 months' regular income.

Start saving by earning 1% cash-back on all debit purchases with a Discover checking account.

4. Sell stuff you don't need

 

Why let your unused stuff sit in a closet when you could turn it into money? Learn more about selling through pawnbrokers and consignment shops, and sell your gold, diamonds, jewelry and silver online.

Gold hit a 1-year high on April 5, 2023, and experts expect it to rise through the year.

CashforGoldUSA.com is our No. 1 recommendation for selling gold, silver, diamonds, pearls, coins, flatware and other precious metals and gemstones.

If you want to downsize to save money, you can also sell your house for cash.

5. Get a side gig to ensure multiple streams of income

If you lose your job during a recession (or any time), it pays — literally — to have a side gig or backup job for an additional stream of income.

Check out our lists of best at-home career-level jobs, best high-paying jobs that do not require a degree and 11 business ideas for moms.

6. Prioritize and pay down debt

If you have debt from credit cards, student loans, or other expenses, consider consolidating your balances onto a 0% balance transfer credit card.

Work to deal with your tax debt, too >>

7. Avoid or delay major purchases

During a recession, there’s a greater risk that you could lose your job. That’s why it’s not smart to make major purchases or accumulate new debt you might not be able to pay off.

Instead, repair appliances and your vehicle and attempt DIY home projects over financing new ones.

8. Invest in yourself by learning recession-proof skills

The very best way to build financial security is to make sure you have a job. Here is our list of best at-home, high-paying careers, and jobs that do not require college degrees — which includes recession-friendly skills like:

Bookkeeping

Proofreading

Medical biller and coder

Coder / programmer

Already have a job? Ask for a pay raise.

9. Identify support systems/network

Devise a plan for what you’ll do and where you’ll go if you lose your job or find yourself without a place to live. 

Check out these posts for government resources and help for single moms.

Shore up your friendships and other social networks that can help you find work, resources, and share ideas for weathering the storm — not to mention get together and have fun!

How to survive a recession if you still have a job: 9 steps to take now

While in a recession, many people want to know, “What should I do during a recession?”

If you still have a job, here’s what you should do right now:

1. Have a financial plan — don’t just wing it!

Savvy Ladies is a free financial helpline that can answer questions about financial planning and connect you to financial resources.

2. Start or build an emergency fund

Make sure you have enough money saved to support yourself and your family for several months if you lose your job.

“A best practice in financial planning is to save 3 to 6 months’ worth of expenses in an emergency money account that is safe and accessible at a bank,” Ward says. 

3. Invest in training, education, networking and building your career 

Read our guides:

42 recession-proof jobs

7 recession-proof businesses 

4. Create a budget and otherwise double-down on frugality

Use an app like YNAB (You Need a Budget) — which is free for 34 days. YNAB allows you to connect all of your accounts, track your spending, and create goals to tackle debt and build savings.

You should also consider ways you can live more frugally and cut back on expenses. Check out our money-saving tips.

“Consider your fixed and necessary expenses and your fun and discretionary expenses,” Ward says. “Make a list of these so that you are prepared to cut back on the discretionary items if this recession causes a job loss.”

5. Manage your debt 

Read our advice on how to get out of debt, and consider refinancing your credit cards or refinance your car note — which can mean delaying auto payment for 90 days.

Can't afford your car payment? See if you qualify to refinance for a lower payment.

Auto Credit Express is A+ rated with the Better Business Bureau:

• Average Saving:  $1,700 or $143 per month
• Minimum Credit Score: 525
• APR from 3.99%
• Loan Amounts: $5,000 – $45,000
• Vehicle Criteria: Under 10 Years/150K Miles

Get a refi quote from Auto Credit Express in 30 seconds >>

6. Delay major purchases like a car or appliance 

While job security is less stable, you don’t want to put yourself at risk of not being able to pay your mortgage or car bill. Any extra money you have should be put into a savings account. 

Think you need to replace your old car? Check out these resources for low-cost car repairs.

7. Sell unwanted and unused items to make extra money

There are lots of items around your house that could be worth money — jewelry, furniture, clothing, old appliances. Check out this post for more ideas of things to sell. 

8. Consider starting a side gig for extra income

There are lots of ways to make money on the side and even earn passive income. 

If you know your industry might be negatively impacted by a recession, Ward recommends sharpening your skills in a different field to give yourself additional options for employment.

“This could mean taking online, night or weekend education programs or pursuing extra certifications,” Ward says. Check out these quick job certifications. 

9. Create a network — personal and professional

Download an app to make friends, attend local conferences and business meetups, and try to expand your personal and professional circles. It never hurts to have more people in your corner..
If you’re a professional single mom looking for a group of like-minded women, consider joining our Millionaire Single Mom Facebook group.

Also, check out these advice from people on Reddit:

How to Survive Another Recession (Or economic downturn if that’s what we’re calling it)!
byu/CatieMacHogan inworkingmoms

How to survive a recession
byu/Individual_Data_3908 inpersonalfinance

How to survive a recession if you lost your job

If you have lost your job and don't have a financial cushion, here is what you can do now:

• Focus on the basics: Rent, utilities, food and frugal living. Apply immediately for unemployment and other public programs. A budget is critical. Sell things you don't need. Gold and jewelry, cars you can do without, clothes and appliances. You could also use consignment shops or pawn shops to get quick cash.
• Maintain your credit score — a low score means higher interest rates and digging yourself deeper in debt. Take steps to improve your credit: How to build your credit fast
• While you look for work, keep your skills current with online courses, a side gig.
• Take advantage of all the resources available and apply for my Single Mom Grant.

Economic recession FAQs

What happens during a recession?

This post elaborates on what you can expect to see during a recession, including that prices increase, people and businesses spend less, which leads to higher unemployment while wages stay steady. Local and federal governments have less tax revenue, so they spend less on programs and projects — and the stock market tends to decline.  

What is the difference between recession and depression?

In general, during a recession there is less economic activity. Typically, the financial pinch follows the following flow when the stock market tanks and home prices dip.

A depression is a severe and prolonged downturn in economic activity, typically defined as lasting three or more years and/or a decline in real gross domestic product (GDP) of at least 10%.

An economic depression is characterized by:

• High unemployment rate
• Low inflation — or even deflation (when the price of items goes down)
• Bear market for stock market
• Credit defaults for individuals, companies and governments
• Bankruptcies
• Less available credit
• The affluent tend to save more during a depression

Inflation and recession: Are they related?

While inflation does not directly cause a recession, steps taken to combat inflation can lead to a recession. 

Inflation is a measure of the rising cost of goods in the economy, and it is often fueled by high production costs and increased product demand. When inflation surges too quickly, the Federal Reserve might hike interest rates to slow buyer demand.

As spending decreases following a rate hike, companies respond by dropping prices and slowing production, which could lead to layoffs or salary reductions. This decline in economic activity over several months is known as a recession. 

Who does a recession impact the most?

Educate yourself about what a recession means for you — if you are affluent, have cash to invest in real estate, the stock market or faltering business, a recession can be a great opportunity to buy low, and hopefully later sell high.

For most people, a recession is a time of anxiety as they worry about losing their jobs — or face unemployment, which lasts longer than average during a recession. Prices on everyday items tend to go up, while real estate markets go down. 

Who benefits in a recession?

A recession is part of a natural, healthy cycle of an economy. Some human behavior shows improvement, including:

• People tend to save more money during a recession.
• People shop less during a recession — which is good for the environment.
• Interest rates are cut, which is great if you need to borrow money, including for a mortgage.
• Floundering businesses close, which means that stronger businesses are more likely to thrive.
• There are many financial opportunities from lower prices overall — including the opportunity to buy stocks, real estate and businesses at discounted prices.

Negative effects of a recession

Of course, there are negative effects of a recession, the most common being: 

• Higher unemployment rates
• Lower wages and salaries
• Decreased home and stock prices
• Increased government spending

How to survive a recession FAQs

Is it good to have cash in a recession?

It is always great to have cash on hand, at least a three-month emergency fund. Low interest rates on savings and money-market accounts during recessions mean that big stores of cash may be unattractive compared with other tools.

Things to buy before a recession?

Stockpiling items in a recession is a good way to save money in the long run. In general, these are some things to buy before a recession:

• Canned goods like fruits, veggies, beans, soups, broths, and meats
• Foods that can be frozen like meat and breads
• Dry goods like rice, noodles, pasta, rolled oats, and seeds (kept in a cool, dry place)
• Baking supplies like honey, flour, sugar, vanilla
• Nut butters
• Spices 
• Oils
• Paper products
• Water

Some financial advisors suggest stockpiling cash while the real estate and stock markets are in wild fluctuation. Then you can buy when markets are low. 

What should you not do in a recession?

Wondering what you should avoid during a recession? In general, here are some no-nos (but common mistakes) during a recession:

• Liquidate all your investments
• Withdraw from your 401k or other retirement accounts
• Co-sign for a loan or otherwise take on more debt than you have to
• Avoid taking too many career risks
• Business owners should avoid capital investments now

Where is the best place to put money during a recession?

Ward says there is no one best place to put money during a recession because each investment has a tradeoff. She says to ask yourself these questions: 

• Do you have adequate emergency reserves? 
• Do you have adequate insurance coverage — such as long-term care, life insurance, property and casualty, and disability insurance?  
• Do you have income from a job or are you retired? 
• What’s on the horizon — a new baby, an expensive tuition bill? 

“All of this and more must be factored in before deciding on where to put money during a recession,” Ward says. 

She says stocks have typically peaked seven months before the recession and then rebound before the recession officially ends. 

“This presents an opportunity to someone who has a financial plan that includes stocks, but it goes against what most people ‘feel’ when investing during a recession,” Ward says.

Citizenship by investment can recession-proof your future

In the face of a potential recession, having international options can be a financial safeguard. The St. Kitts Citizenship by Investment program offers a second passport, visa-free travel, and attractive tax benefits. These advantages can provide stability if your home country faces economic or social challenges. It’s a practical way to diversify not just your finances, but your life assets.

Bottom line: You can survive a recession and thrive afterward if you take action now

Most people fare OK during and after a recession. While professional opportunities are fewer, there are still ways to earn a living, grow your career and investments during a recession. An economic downturn is always an opportunity to reassess your values and align your money with your goals.

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Itching to get out of the 9-5 workforce and spend more time with your kids? Or, perhaps you’re thinking of getting pregnant and want to know how to stay home full-time with your kids.

I share why you cannot risk quitting your career, but you can still maximize time with your family and other personal priorities.

What does that mean for you? If you’re looking for a new job or starting a business you can do from home, now is a prime time to find one — or to ask your current employer if you can do some or all of your work from home. 

In this post, I’ll show you: 

“I want to be a stay-at-home mom but we can’t afford it”

How you can afford to be a stay-at-home mom

1. Budget — track spending (and cut expenses)
2. Start a flexible career you can work at home
3. Ask for a raise – and then bank it
4. Find ways to save money

Ways to make money for stay-at-home moms

• Sell things you don't need
• Sell services
• Earn money quickly
• Start a side hustle today to make more money

Bottom line: Being a stay-at-home mom will require you to work

“I want to be a stay-at-home mom but we can’t afford it”

The argument is over: You absolutely, positively cannot afford to be a full-time stay-at-home mom.

No need to delve into arguments about personal choice or what is good for children or families. That’s all been hashed out in the mommy wars. It’s not about those issues. This is about money.

You. Cannot. Afford. To. Be. A. Fulltime. Stay-at-home-mom. You just can’t.

What’s that you say? Your husband is a banker? And your family is rich? Your spouse adores you? Doesn’t matter. It makes no financial sense for any of those 5.1 million women in the United States who are stay-at-home moms.¹ That is about one-in-five married-couple families who have decided to put their family’s futures in jeopardy.

Don’t just take it from me. I recently interviewed Joanne Cleaver, a career consultant and author of The Career Lattice.

“Stepping off the career track completely is career suicide,” Cleaver told me. “Don’t do it.”

Her reason? You will no doubt lose the momentum you’ve built, the network you accumulated, the credibility you’ve earned. But these longtime truths are accelerated in today’s tech-driven world – no matter what industry you’re in. 

“If you completely leave the workforce, when you return you’ll have to completely reinvent yourself with new skills, new credentials and a new portfolio,” Cleaver said. “You might as well start in a new career.”

These challenges translate into a tougher time getting a new gig when you want one. And once you do, you’ll earn less than if you had kept a foot in the workforce while caring for your kids. 

Researchers at the University of California Los Angeles and Oxford University found that when professional women leave the workforce for three or more years, they suffer a compensation hit of 41%.² Other research finds that stay-at-home moms are more depressed, anxious and socially isolated.³

The good news, however, is that despite the cultural and social pressure to commit endless hours to our children, kids actually don't benefit from all those hours of helicopter parenting — and instead do best with working mothers.

However, if you plan ahead and keep a hand in the game, things might turn out differently. Of course, things don’t always happen as planned.

What happens if your husband leaves or asks for a divorce? You’ll have no income. In this post, I talk about what happens if you want to get divorced as a stay-at-home mom.

How can I afford to be a stay at home mom?

1. Budget — track spending (and cut expenses)

The first step, says Doug Carey, is to create a budget. Carey is a Chartered Financial Analyst and president and owner of WealthTrace, a consumer retirement and financial planning software company in Zionsville, In.

Carey offers the following tips:

• Use a budgeting app to track your spending. It’ll help you gauge the impact of a salary loss. It will also give you concrete data on how much money you need versus how much you want.
• Figure out how much you'll save by staying at home. Expenses like gas money, babysitting, and clothing are likely to decrease. However, there could be new expenses such as health insurance.
• Cut back on luxury items and dining out.
• Think about downsizing your home or moving to an area with a lower cost of living.
• Think about starting a home garden to save money on groceries. Even if you live in an apartment, you can have a container garden on your balcony.

“In addition to having a budget, it could be a very good idea to hire a financial coaching or planning service to keep you on track,” Carey advises. “By seeing how your finances look in the future, it will help you get your arms around the situation better.”

In short, create a tight budget, crunch the numbers, and be realistic about what you can afford. If the numbers don’t support your decision to be a stay-at-home mom, make a plan to get there by exploring new opportunities to earn extra income.

After all, spending quality time with your children is worth the fight to make this happen.

You Need a Budget is a spreadsheet-based app that helps you pay off debt, create a budget and set and reach all your money goals.

2. Start a flexible career you can work at home

Ask yourself: How can you keep a foot – toe, knuckle, nail – in your industry while still giving your children the time you feel they deserve? Brainstorm, ask colleagues and mentors for advice, and get creative to make sure you remain relevant. You can’t afford not to. 

Start here:

20 of the best jobs for stay-at-home moms

29 jobs for single moms: Best high-paying jobs this year

Do not aim just to pay the bills and get by, but focus on a longer-term career, advancement and the education and skills you need to get there.

For moms aiming for leadership roles or a career pivot without stepping out of the workforce, an online MBA can be a high-ROI path. Programs like the Baylor MBA Program offer flexible, accelerated coursework you can complete from home, building skills in strategy, finance, and analytics while you keep working and parenting. An MBA can open doors to remote-friendly management, product, and operations roles—and significantly boost lifetime earnings—while preserving the schedule control you need right now

There are countless ways moms can earn a high income, from home, with legitimate, flexible careers — many of which earn $100,000 or more. 

Our Top 2, highly paid work at-home careers, without degrees are:

Proofreader. If you’re great with words, detail and grammar, you may also be interested in a proofreading career, which can pay $15-$30 hour from home, on your schedule.

Bookkeepers. Bookkeepers can earn a salary, or build a business earning $75+/ hour, which can be more than $100,000 per year. Entry-level bookkeeper jobs can pay $20/hour.

Bookkeeper Launch is the top-rated online video course to help you start and run a successful, 6-figure bookkeeping business.

3. Ask for a raise – and then bank it

The fastest, surest way to make more money is to ask for a raise and/or promotion. But make sure you have a plan for that extra money ahead of time. More money often leads to more spending if you’re not committed to a strict budget. 

One easy way to save is to open a savings account and set up an automatic withdrawal from your checking to your savings. Once you calculate your after-tax raise, send that amount directly to a savings account and don’t touch it. You can also invest it and build wealth. 

You might be surprised how fast it adds up. You can use the money for an emergency fund if you don’t already have one.

Here is expert advice (with videos!) about asking for that raise.

4. Find ways to save money

Living within your budget — even a reduced budget — will help you feel less stressed and more focused on making wise investments in your career and time:

Shop around for insurance rates

Compare rates among different companies for auto insurance, homeowner’s insurance, and other insurance products you buy.

Refinance your car

If you have a decent credit score, you may be able to refinance your car for a lower payment, and skip payments for 90 days.

Can't afford your car payment? See if you qualify to refinance for a lower payment.

Auto Credit Express is A+ rated with the Better Business Bureau:

• Average Saving:  $1,700 or $143 per month
• Minimum Credit Score: 525
• APR from 3.99%
• Loan Amounts: $5,000 – $45,000
• Vehicle Criteria: Under 10 Years/150K Miles

Get a refi quote from Auto Credit Express in 30 seconds >>

Transfer your debt to 0% credit card

Be sure to keep an eye on your credit score. If you carry a credit card balance, see if you qualify for a 0% balance transfer credit card, and save thousands of dollars in interest each year — or at leaset transfer to a lower-interest loan and pay off your debt.

Meal plan

One easy way to overspend is to avoid meal planning — and rely on take-out, restaurants and prepared meals at the grocery store. These are less healthy, and more expensive than cooking from scratch. Get some ideas for meal kits, meal planning and other ways to save on food for your family.

How to make money as a stay-at-home mom

No matter how much income you bring in every month, most moms feel they could use a little more cash. Or, a LOT more cash. Most of us could use more spending money, you have investing goals or college tuition to save for.

One of the best things about being alive today, is there are more ways to make money than ever these days. The internet is a treasure trove when it comes to making money.

Here are ways stay at home moms make money:

Sell things you don't need

Instead of going straight to MLM programs, sell items you already have (think old clothes, electronics, household items) online through craigslist.com, eBay.com, or Facebook Marketplace.

Online resale and consignment sites like Mercari and Poshmark and ebay make it easy to turn this concept into a business.

Check out 10 business ideas for moms.

Sell services

You can also earn money selling your talents and abilities in the form of a service. You could mow lawns, clean houses, help people with bookkeeping, or teach piano lessons, for example.

Freelance and online businesses

Selling your skills is one of the most sustainable ways to make money online, and can grow into a full-time career, or even a scalable business. This is how Wealthysinglemommy.com founder Emma Johnson started — by freelance writing, and then by starting a blog.

One of the best ways to start growing an online service-based business is with freelancing gigs.

The benefits of freelancing, opposed to having a j-o-b, is that rather than following someone else’s rules as an employee, you have control over your schedule and the work you do.

Popular freelance gigs and careers include freelance copywriting, grant writing, and virtual bookkeeping.

Most types of freelancing don’t require any formal education. You don’t need an English degree to be a successful freelance writer. And if you can answer emails, manage social media, or do other administrative tasks, the role of virtual assistant could be perfect for you.

There are also excellent online courses that can help you learn the basic skills to launch your new career, plus support for finding clients. Bookkeeper Business Launch is a popular first step for many successful freelance, work-at-home bookkeepers who can earn multiple six-figures.

Coding, or programming, is a high-demand, highly paid industry that is especially short of female workers. This work can be done remotely, online.

Don’t panic if you can’t write code. There are many online resources for how to get started, as well as online communities of other coders from whom you can learn.

Earn money quickly

If your goal is making money in a hurry, you need to find ways that don’t require long waiting periods or a bunch of hoops to jump through. Here are some of the best ways to earn money in a hurry:

• Sell jewelry you no longer wear
• Sell your gently used clothing on ThredUp.com

If you need to earn more money than you’re making now, you may face an even bigger challenge than many working moms: How can you possibly increase your earnings when you have so little free time already?

Start a side hustle today to make more money

Finally, don’t forget the prospect of starting a side hustle — or a temporary job you can take on in addition to your full-time work. Side hustles look different for everyone, but they can include concepts like driving for Uber or Lyft, babysitting kids, painting houses, mowing lawns, and more. 

If painting houses is your go-to side gig, consider leveling it up into a real micro-business. With modern tools for painting job management, you can send on-the-spot estimates, schedule crews, route jobs, and invoice from your phone—while keeping customer info, photos, and signatures in one place. Features like online payments and QuickBooks syncing help cash flow and bookkeeping, so you spend less time chasing checks and more time with your kids.

Online side hustles include some of the ideas we’ve mentioned already — jobs like tutoring or finding online freelance bookkeeping work.

Some side hustles you can do from home also overlap; for example, you can work as a virtual assistant or freelance writer online and from your couch, just like you can write freelance articles anywhere with an internet connection. You can also make money testing products at home.

Maybe you need a little extra cash (or a lot – hello, savings account!), maybe you’re bored with your current career, or you want to safeguard yourself against a recession or an industry crash by having a fall-back plan. Or maybe you’re interested in pursuing your passion project, but you’re not quite ready to make the leap into full-time business ownership. Whatever your reason is, you NEED a side hustle.

The good news is there are many jobs you can do from home. Many of them can be done with just a laptop and an internet connection. If you need job training, you can find free and affordable courses online through sites like Udemy and Coursera.

Bottom line: Being a stay-at-home mom will require you to work

The fact that the majority of moms today will be an unpartnered mother, and divorce rates still stand at around 50%, only underscores why all women must prioritize their careers, earnings and future investments.

Many stay-at-home moms take on a part-time job or side gig to keep cash flowing and to keep a foot in the professional world. 

If you have no income (or not enough income), apply for recession-proof jobs to establish financial stability initially. Long-term, it’s important to keep your eyes open for jobs that align with your interests so you can build a fulfilling career on your own terms.  

If you already have a full-time job, be open to working outside of your home until you can establish financial stability, but give thought to lucrative side hustles that could turn into a full-time business — giving you the necessary cash flow to stay at home.

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SOURCES

1. “Stay-at-home moms and dads account for about one-in-five U.S. parents,” by Gretch Livingston, Pew Resarch Center, Sept. 24, 2018 https://www.pewresearch.org/short-reads/2018/09/24/stay-at-home-moms-and-dads-account-for-about-one-in-five-u-s-parents
2. Kahn, J.R., García-Manglano, J. and Bianchi, S.M. (2014), The Motherhood Penalty at Midlife: Long-Term Effects of Children on Women's Careers. Fam Relat, 76: 56-72. https://doi.org/10.1111/jomf.12086
3. “Stay-at-Home Moms Report More Depression, Sadness, Anger,” by Elizabeth Mendes, Lydia Saad and Kyley McGeeney, Gallup May 18, 2012 https://news.gallup.com/poll/154685/stay-home-moms-report-depression-sadness-anger.aspx

Whether you need money to buy a home or cover an unexpected medical bill, there are financing options available for single moms, even if your credit is less than stellar. 

The catch is deciding whether that is a wise move. In other words, just because you can get a loan, doesn’t necessarily mean you should.

“To put it mildly, the world of loans and financial aid for single mothers can feel like a labyrinth,” says Top Mobile Banks CEO and investment analyst Tim Doman. “But with the right guidance and determination, it's a maze you can navigate.” 

It's critical to understand exactly what you are taking on — the interest rate, whether the APR is fixed or variable, and whether or not you are actually paying down the principal each month according to the repayment terms.

Bill Ryze, a certified chartered financial consultant warns to note the interest rate on any loan offer. Ryze says you should only get a loan if you are in a financial position to repay it. He says you’re more likely to secure a low interest rate if you have a good credit score — 670 or above. “It is not advisable to get a loan if you have an unstable income, don’t have a solid repayment plan for the loan, or if you already have outstanding loans that you cannot keep up with,” Ryze says.

Learn more about how to improve your credit score.

Here is the run-down on loans for those with low or moderate credit and income.

Home loans

• FHA loans
• HomeReady Mortgage from Fannie Mae 
• FDIC Loans via Operation HOPE Home Buyers Program 
• Home Possible Loan from Freddie Mac
• How hard is it for a single mom to buy a house?

Car loans

• How to get a car loan
• Buy-here, pay-here dealerships

Personal loans

• Lending Club
• SoFi
• Universal Credit
• Upgrade
• Upstart
• What disqualifies you from getting a personal loan?

Emergency loans

• What are emergency loans used for?
• What credit score do you need for an emergency loan?

Student loans

• Federal student loans
• How much can a single mom get for student loans?

Alternatives to loans

Home loans for single moms

If you want to buy a home, there are home loans for single moms that can help you make that dream a reality. You may also be interested in grants for first-time home buyers, or help with home repairs.

Check the latest mortgage rates.

Some home loans for those with low or moderate incomes:

FHA loans

Federal Housing Administration (FHA) loans offer reduced closing costs and down payment requirements. These fixed-rate loans are available in 15- and 30-year terms.  

Details: 

• Credit score of 500 to 579 – 10% minimum down payment
• Credit score of 580 or more – 3.5% minimum down payment
• Mortgage insurance required (for life of the loan if you put down less than 10%) 
• Property must meet FHA eligibility requirements (maximum purchase price varies from $472,030 to $1,089,300 depending on where you live¹) 

HomeReady Mortgage from Fannie Mae 

The HomeReady Mortgage is designed to help lenders serve credit-worthy borrowers who have a lower income. You must take the Fannie Mae HomeView online course or an approved alternative HUD-approved course to be eligible. 

Details: 

• Income must be 80% of the area median income²
• No geographic restrictions
• Credit score of 620 or more – 3% minimum down payment
• Funding from relatives, grants, and Fannie Mae Community Seconds is allowed

FDIC Loans via Operation HOPE Home Buyers Program 

Operation HOPE Home Buyers Program helps low-income home buyers through FDIC-approved loans, down payment assistance, and first-time buying assistance.

Details: 

• Group training and one-on-one coaching for first-time home buyers
• Provides HUD-certified coaches to guide you through the home loan process

Home Possible Loan from Freddie Mac

If you’re looking for low-income home loans for single mothers, a Freddie Mac Home Possible mortgage could be right for you.

Details: 

• Your income cannot exceed 80% of the area median income
• As little as 3% down
• No geographic limits on loan amounts
• Can apply with bad credit due to lack of credit history 
• Mortgage insurance is required on one-unit properties, but once your loan balance is less than 80% of its value, it is no longer required

How hard is it for a single mom to buy a house?

Because you’re applying for a loan based off of a single income, it can be more difficult to buy a home as a single mom.

However, Doman says home-buyer assistance programs make it easier for single moms to buy a home.

“My sister, for example, got her first home with a USDA loan, which offered her more accessible terms,” he says.

State and local organizations offer a range of assistance options, including home buyer grants. Doman says there are also housing counselors available to help people navigate the process of buying a home.

Car loans

Car loans are available through banks, credit unions, online lenders, and directly through car dealerships. These loans use the vehicle you’re purchasing as collateral, which means if you don’t pay, the lender will repossess your car.

If you need a car loan but have very low — or no — credit, a repossession or bankruptcy, check out Auto Credit Express. A+ Better Business Bureau rating, 30-second pre-approval and cash within 24 hours.

How to get a car loan 

Ryze offers this advice to obtain a car loan:

• Access your credit report: Your credit score will have a significant impact on how much interest you pay on your loan (and whether you’ll be approved for a loan at all). If your score is below 660, Ryze says you might want to hold off on getting a car loan and focus on repairing your credit score to secure the best loan rates.
• Identify how much you need: Before applying for a car loan, determine the type of car you would like to buy, how much of a down payment you can afford, and what number of monthly payments work for you. While a longer loan term means smaller payments, you’ll pay more in interest over time.
• Find lenders: Try finding car loan providers —  e.g., banks, credit unions, and other institutions — and apply for pre-approvals. Compare pre-approvals before accepting an offer.
• Get your car: After accepting the loan offer, go to the dealership, negotiate your payment, and sign the paperwork once you settle on the price. Your lender will reach out to you with details about your car loan (the amount and mode of payment).

“I recommend automating your payments to stay on top of your debt and enjoy a discount on the interest rate (depending on the lender),” Ryze says. 

Auto Credit Express specializes in car loans for those with low or no credit:

• Better Business Bureau rating of A+
• In business since 1999
• For new or used cars
• Auto loans and refi for buyers who have low or no credit, or who have gone through bankruptcy or had a vehicle repossessed
• Pre-approval within 30 seconds

24 hours to a car loan with Auto Loan Express >>

Buy-here, pay-here dealerships

Buy-here, pay-here dealerships are special car dealerships for borrowers who either have bad credit or do not meet traditional lender requirements. These dealerships offer in-house financing, so you will not undergo the same level of scrutiny, though you may have to show proof of income and employment. 

Ryze says you typically only need to fill out the required paperwork and demonstrate you can afford the monthly payments toward the loan. Due to the higher lending risk, these dealers often charge higher interest rates.

While these types of loans can help people with low credit scores obtain a car loan, Ryze says they do not help build your credit score because most dealerships will not report your payments to a credit bureau. 

However, if you do miss a payment, Ryze says some might report it, damaging your credit score even further. Before you buy a car, find out the dealership’s policy on reporting payments. 

If you need to work on building your credit before purchasing a car, Ryze says there are steps you can take:

1. Watch your credit report and make sure to dispute any errors.
2. Try to lower your credit card balances and avoid carrying a month-to-month balance.
3. Avoid applying for new credit cards.
4. Pay your bills on time so you don’t incur late fees or extra charges. 

If you really need help you can seek out sources for a free car, free car repair or free rides.

Personal loans for single mothers

You can get a personal loan to cover any type of expense from an online lender, bank, or credit union:

Lending Club

Lending Club offers a quick and easy process to apply online for a personal loan. Money is deposited directly into your bank account or directly to your creditors to pay off debt. 

Better Business Bureau rating: A (accredited since 2008)

Loan amounts: $1,000 to $40,000

Interest rates: 9.57% to 35.99% APR

Loan terms: 3 or 5 years

Origination fee: 3% to 6% of loan amount

Minimum credit score: 600

Requirements: 

• Maximum debt-to-income ratio of 60% for individual application (40% for joint)
• Minimum 37 months credit history and two accounts
• No minimum income, but must show proof of income

Lending Club reviews: 

Trustpilot (4.7/5 stars): 

Reddit: 

BBB (4.57/5 stars): 

SoFi

SoFi offers a hardship loan for people experiencing unexpected financial challenges like unemployment, unexpected medical bills, or caregiver expenses. They also offer a 0.25% interest rate reduction on personal loans for people who set up autopay. SoFi has a mobile app for iOS and Android devices. 

Better Business Bureau rating: A+ (not accredited)

Loan amounts: $5,000 to $100,000

Interest rates: 8.99% to 25.81% APR

Loan terms: 2 to 7 years

Origination fee: 0% to 6%

Minimum credit score: 680

Requirements: 

If unemployed, it’s necessary to meet one of the two following eligibility criteria:

• Have sufficient income from other sources (varies by the loan amount being sought)
• Have an offer of employment to start within the next 90 days

SoFi reviews: 

Trustpilot (4.9/5 stars):

Reddit: 

How does anyone borrow from SoFi?
byu/StrengthPuzzled9495 insofi

Universal Credit

Universal Credit allows you to answer a few quick questions to see your rate before taking out a personal loan (which won’t impact your credit score). If approved, you can get paid in as little as one day. Universal Credit also offers free credit score reports for borrowers.

BBB rating: A+ (accredited) 

Loan amounts: $1,000 to $50,000

Interest rates: 11.69% to 35.99%

Loan terms: 3 to 5 years

Origination fee: 5.25% to 9.99%

Minimum credit score: 560

Requirements: 

• Maximum debt-to-income ratio of 75%, including your mortgage and the loan you’re applying for
• No minimum income requirement
• 2-year minimum credit history 

Universal Credit reviews: 

Trustpilot (4.8/5 stars):

BBB (4.81/5 stars)

Upgrade

Upgrade offers both secured (meaning your debt is backed by collateral like your house or car) and joint loans (with a cosigner). Acceptable income can come from alimony, retirement, child support, and Social Security funds. Upgrade has a mobile app for iOS and Android devices.

BBB rating: A+ (accredited) 

Loan amounts: $1,000 to $50,000

Interest rates: 8.49% to 35.99%

Loan terms: 2 to 7 years

Origination fee: 1.85% to 9.99%

Minimum credit score: 560

Requirements:

• Maximum debt-to-income ratio is 75% or less, including the loan
• 2-year minimum credit history 

Upgrade reviews: 

Trustpilot (4.5/5 stars):

Reddit: 

BBB (4.52/5 stars): 

Upstart

Upstart offers loans to borrowers with a short credit history, including borrowers who have a combined income from employment, alimony, and child support. Cash payouts are available in as little as one business day. Upstart does not allow joint or co-signers and does not have a mobile app.

BBB rating: A+ (accredited) 

Loan amounts: $1,000 to $50,000

Interest rates: 4.6% to 35.99% APR

Loan terms: 3 or 5 years

Origination fee: 0% to 6%

Minimum credit score: 300

Requirements: 

• At least $12,000 annual income
• Must have a full-time job or be starting a full-time job within six months

Upstart reviews: 

Trustpilot (4.9/5 stars): 

Reddit: 

BBB (1.23/5 stars): 

What disqualifies you from getting a personal loan?

Ryze, who is board advisor for loan marketplace Fiona Financial, says there are factors that may disqualify you from getting a personal loan: 

• Low credit score
• High debt-to-income ratio
• Insufficient income
• Age or residency requirements of individual lender

“One common and often overlooked [issue] is providing inaccurate information or missing information when making your application,” Ryze says.

Emergency loans

Some loans can be paid out quickly to cover emergency expenses: 

What are emergency loans used for?

Emergency loans can be used to cover a variety of expenses — car repairs, past-due rent, child care expenses, medical bills, etc.

These are some of the different types of emergency loans:

Payday Loans

• Short-term loan where you borrow money in advance of your next paycheck
• Based on how much you earn
• Not available in every state (16 states and Washington, D.C. don’t allow payday loans)

Learn about same-day pay jobs

Cash Advances

• Cash advances from your credit card
• Doesn’t require a credit check 
• Interest rates can be high
• How much you borrow is set by a percentage of your card’s limit or a maximum amount set by the credit card company

Title Loans 

• Secured loan that uses your car title as collateral
• Car can be repossessed if you fail to pay back the loan at the end of the term

Home Equity Loan/Line of Credit

• Lump-sum funding and a set interest rate
• Repayment of up to 30 years in some cases
• Home equity line of credit means you can borrow for a number of years, with a repayment period of up to 20 years
• Uses your house as collateral, which means if you can’t pay it back, the bank will foreclose on your house

What credit score do you need for an emergency loan?

Ryze says you usually need a credit score of at least 580 to be eligible for an emergency loan, though some companies do not have minimum score requirements. 

However, Ryze says that lower scores will result in a higher interest rate (in some cases, upwards of 35%). 

Top Mobile Banks CEO and investment analyst Tim Doman says that typically, a score of around 600 and above increases your chances of getting an easy personal loan. 

“Don't lose heart if you're below that,” says Doman, who notes that some lenders care more about a person’s income and ability to pay back the loan.

When it comes to personal loans, Doman recommends applying through a credit union or online lender. 

“They usually have more flexible terms and might be willing to overlook a blemish or two on your credit report,” Doman says.

He recommends shopping around to compare rates and terms before applying for a loan. 

“My sister, a single mother herself, has been through this journey, and I can tell you it's an uphill climb but not an impossible one,” Doman says. 

Student loans for single parents

Ryze says private student loans tend to have higher interest than federal student loans. Borrowers of private loans don’t enjoy the same protections as as borrowers with federal student loans, such as fixed interest rates, income-based repayments and low APRs, and may not be the best option for some. 

“I would only recommend private student loans for anyone who is not eligible for federal student loans or someone who has exhausted their federal student loans but still needs funds to cover their education expenses,” he says.

Before you apply for student loans, first find out if you qualify for any grants or scholarships, including scholarships for single moms and scholarships for women. You can explore options through the federal government, state governments, specific colleges, and private organizations. 

Federal student loans

To qualify for any federal student loans and grants, you have to fill out the Free Application for Federal Student Aid (FAFSA)³.

Your chosen college or university will use this application to determine eligibility for financial aid, which is based upon your expected family contribution, enrollment status (full or part time), and your school’s enrollment costs. 

Loan amounts: There are several types of federal student loans, and they all have different loan limits and eligibility⁴:

Loan type	Who is eligible	Details	Loan amounts
Direct subsidized	Undergraduate students	– Based on financial need – Calculated based on cost of attendance minus expected family contribution and other forms of financial aid – Lowest interest rate of the three – 6-month grace period after you leave school	$3,500 to $5,500 per year (increases for each year you’re in school)
Direct Unsubsidized Loan	Undergraduate and graduate students	– Not based on financial need – Calculated based on cost of attendance minus expected family contribution and other forms of financial aid – 6-month grace period after you leave school	$5,500 to $20,500 per year (varies by year in school and dependency status)
Direct PLUS Loan	Graduate and professional students	– Not based on financial need- Calculated based on cost of attendance minus expected family contribution and other forms of financial aid – Highest interest rate – 6-month deferment after you leave school	Up to the total cost of enrollment

How to apply: Fill out the free FAFSA form on studentaid.gov. Applications for the following school year typically open on Oct. 1. For the 2024 school year, however, applications will open in December instead of October because of an overhaul in the application system⁵. 

How much can a single mom get for student loans?

If you apply for a private student loan, the lender will determine your maximum loan amount based on your need and creditworthiness.

Federal student loans have payout limits based on your year in school, dependency status, and how much financial aid you’ve received from other sources (grants, scholarships, work-study programs, etc.). 

Undergraduate students can borrow up to $5,500 in subsidized loans and $12,500 in unsubsidized loans, while graduate students can borrow up to the full cost of attendance, minus any other financial aid received.

If you already have student loans, and are struggling to afford them, refinancing your student loan might help lower your payment and shorten the loan term.

If you are wondering how student loan refinancing works, here are the basics to consider:

• Whether the loan will be paid off sooner with refinancing
• How much you could potentially save in interest
• Your employment history and credit score — if they are not strong, you will not qualify for a competitive refinance loan
• Learn how to assess the loan, including fees, forbearance options and customer service

Alternatives to loans

If you do not want to take out a loan, check to see if you qualify for one of many government assistance programs and charities for single moms.

Help for single moms: 16+ resources	$500 monthly single mom grant
Best jobs moms can do from home	Free money for bills
10+ charities that help single mothers	Free gift cards
Free food	Free clothes
Free daycare	Free gas
Free formula	Free roadside assistance

Also, research single-mom programs in your state:

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Find single-mom resources in every state:

Alabama	Alaska
Arizona	Arkansas
California	Colorado
Connecticut	Delaware
District of Columbia	Florida
Georgia	Hawaii
Idaho	Illinois
Indiana	Iowa
Kansas	Kentucky
Louisiana	Maine
Maryland	Massachusetts
Michigan	Minnesota
Mississippi	Missouri
Montana	Nebraska
Nevada	New Hampshire
New Jersey	New Mexico
New York	North Carolina
North Dakota	Ohio
Oklahoma	Oregon
Pennsylvania	Rhode Island
South Carolina	South Dakota
Tennessee	Texas
Utah	Vermont
Virginia	Washington
West Virginia	Wisconsin
Wyoming

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SOURCES

1. “FHA Mortgage Limits,” 2023. U.S. Department of Housing and Urban Development. https://entp.hud.gov/idapp/html/hicostlook.cfm
2. “Area Median Income Lookup Tool,” 2023. Fannie Mae. https://ami-lookup-tool.fanniemae.com/amilookuptool/
3. “How do I apply for a federal student loan?” U.S. Department of Education. https://studentaid.gov/help-center/answers/article/how-to-apply-for-federal-student-loan
4. “The U.S. Department of Education offers low-interest loans to eligible students to help cover the cost of college or career school,” U.S. Department of Education. https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized
5. “FAFSA launch officially delayed,” March 22, 2023. Inside Higher Ed. https://www.insidehighered.com/news/2023/03/23/new-fafsa-wont-launch-until-december
6. “WIC Policy Memorandum #2023-4,” March 31, 2023. United States Department of Agriculture. chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://fns-prod.azureedge.us/sites/default/files/resource-files/wic-ieg-2023-24-memo.pdf
7. “Find out if you can still get health coverage,” 2023. HealthCare.gov. https://www.healthcare.gov/screener/
8. Single Parent Project. https://www.singleparentproject.org/