9 financial tips for single parents

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Educate a little boyFrom a financial point of view, it’s not easy, especially for those parents who choose (or need to) do this on their own. The single parent You have a dual responsibility to balance the child’s emotional needs with their financial needs.

9 financial tips for single parents
9 financial tips for single parents

“Having a budget and financial plan is important, especially if you are a single parent, as you will be your child’s greatest supporter,” said Clare Levison, a financial planning specialist. “There are advantages and disadvantages. The downside is that you have to do everything by yourself, but the downside is that you really do it YOU CAN Do it alone “.

Here are some tips on how to plan your future and that of your family.

1. Budget, budget, budget

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When you review what you are making and what you are spending, you will create categories for different payouts. A plan to consume less will also help you stay out of debt.

Determine your monthly fixed costs. This usually includes a home, food, services, health, and anything else you need to keep your life going. An emergency fund is used to cover unscheduled expenses such as car repairs or to survive if you lose your job. “You need to save between 6 and 12 months in expenses if you don’t have a second income to support you,” recommends Levison.

Goals and priorities like retirement, buying a home, or your child’s tuition fees can be more easily achieved through various austerity measures like mutual funds. There are platforms that can save you 100 pesos a week.

Don’t forget to include holidays and birthday gifts, but watch your prices.

2. Raise your children

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Become a financial role model by setting a good example. Let them know about savings and explain the difference between need and want when it comes to spending.

“When you are a single parent with just one income, helping your children understand the needs of the home and plan for the future is extremely important,” said Laurie Barry, financial services advisor at UBS in Chicago.

3. Make “exchanges”

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“When you’re a single parent and an entrepreneur, life is about compromising,” says Mullin. For example, even if you are planning your meals for the week on Sunday, there are days when you need to shop at a fast food place because you are late for a meeting. These expenses are not planned as you are exchanging money for time.

“Sometimes it is worth paying for some things that improve your quality of life, but that means you have to make adjustments in other areas of your budget,” says Mullin.

4. Have a contingency plan

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It is important to identify a family member who will make important decisions about your child when you cannot do so yourself. Who cares about the money you leave when you are away?

5. Make sure

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Protecting your family with life, disability, and health insurance should be the same priority as saving. Life insurance gives your little one financial stability in the unfortunate event that you are absent.

What would happen to your company if you got seriously ill? Yes, there are insurance policies that can be expensive, but in the long run they can be the key to your children’s wellbeing.

6. Manage the pension

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It can happen that the money that the other parent spends on your children is additional income, although most of the time it is a necessary capital that does not exceed it. This benefit ends when the child has reached the age of the majority. This does not mean that you will stop procuring your children from the age of 18. This money can also go away if the other parent dies or chooses not to contribute (which is illegal, but it happens).

“If you can, use the money the other parent sends you to feed your child’s savings fund,” says Randy Kessler, founder of the Kessler Solomiany finance agency.

7. Create a support system

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Trading favors can help you save money. Create a support network of friends and family to help each other out when needed. “For example, when children are young, babysitting can be very expensive, but sometimes your family members can help.”

8. Build your career

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Running a business when you don’t have the direct support of a partner to raise your children can be scary. This takes time and commitment so you will need the help of your family and friends in looking after your little ones.

It is also important to reduce the guilt as much as possible. You certainly don’t spend as much time with your children as you’d like, but you are building their legacy. Do not forget.

9. Schedule your time

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Even so, one of the greatest blessings of an entrepreneur is the flexibility you can have in your schedules. The truth is, being able to play with your schedule and easily work from home some days can make all the difference in getting your family off to the best possible start and enjoy.

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