Single-parent finance tips

Here’s what every single parent needs to have in place to protect their financial wellbeing and fortify their family’s financial security:

INSURANCE

You are your family’s biggest asset and as the sole provider and caregiver, you need to think about what would happen to your dependents if something happened to you or to your ability to provide for your children.

Income protection, disability protection and life cover play a vital role in protecting your and your family’s financial future. Speak to a professional to ensure that you have sufficient policies with the right level of cover for future living and education expenses.

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ESTATE PLANNING

However much you do or don’t own, having a valid and updated Will in place is essential. Not only will it make sure your final wishes are executed your way, but it’s also imperative for outlining who will take care of your dependents if you’re no longer around.

If you don’t have a Will and you haven’t nominated a guardian, the decision falls to the courts, which is a hard process, and your dependents won’t be able to easily access the money they need.

Talk to our team of experts to help you draw up a Will today.

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MAKE PROACTIVE MOVES TOWARDS RETIREMENT AND INVESTMENT

You may be somewhat resistant to set aside money for later when there are so many things that depend on you now, but it’s important to at least start the process. At some stage, your children will be able to become financially independent, and if you’ve already got a (small) base to start with, you’ll be able to grow it more effectively.

EMERGENCY SAVINGS

Single parent households face added financial pressure if they experience emergency expenses not planned for. There’s no second person to rely on, which means your access to credit can get maxed out quickly.

Having some money (no matter how small the amount) set aside that’s quickly and easily accessible will give you peace of mind that you can weather the storm when life happens.

Final thought:

Remember that taking care of your own financial wellbeing protects your children from having to (potentially) financially take care of an aging parent. By prioritising yourself doesn’t mean you’re taking away from them, it means you are protecting them in the long run. As a bonus, you’re setting an example of good financial habits and boundaries.