Losing a job is everyone’s worst nightmare, one that has unfortunately become a reality for more and more Americans. If this has happened to you, you’re probably wondering how you will manage your family’s financial obligations without a steady paycheck. Luckily, there are ways to make managing a layoff easier and less stressful on your finances and ultimately, your family.

Prioritize your bills. Keeping a roof over your family’s head is the most important thing for ensuring the safety of your family, so paying your rent or mortgage should be priority number one. You’re going to need transportation to and from prospective job interviews so make sure you continue to make your car payments. Next would be basic utilities- with the key word being “basic”. Eliminate all the extras, such as cable TV, movie channels, and Internet service. Finally you’ll need to set money aside for food and necessary insurance premiums- consider paying these monthly instead of payments large sums for six months or one year.

File for unemployment. Because you will probably have to wait a few weeks before receiving your first unemployment check, you will want to start this process as soon as possible. You can anticipate receiving approximately half your current salary for up to 26 weeks, which can help keep you afloat until a more permanent solution arises. Make sure you are clear on the terms of your severance. At the time of your layoff, your human resource supervisor should have provided you with a packet of information outlining these details. In some cases, you may be entitled to accrued vacation pay on top of any severance pay you are scheduled to receive.

Keep the lines of communication open. Be open and honest with your children about your job loss, and be prepared to answer any questions or assuage any fears they may have. Use the opportunity to teach your children the importance of money management- consider including them in the family budget process or ask their help in giving up an activity to save money.

Don’t let your family become bogged down in the stress, anxiety and resentment that frequently accompanies a job loss. Take advantage of the extra time you now have with your family, and spend more one on one time with your children. Visit a museum, plan a picnic in the park, start a crafts project, or read a book together. Let this be a lesson to your children in dealing with hardships so that they are prepared for the challenges that will face them in their own adult lives.

Posted in Home Budget

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