The age where traditional families with 2.4 children were dominant is now long gone, and little more than a foot-note in history. While there is a minority that would consider this to be an example of declining morality and the failure to embrace long-term commitment, however, it is more indicative of greater social freedom and the eradication of the outdated values that once bound family life.
To support this, there were an estimated 13 million one-parent households in the US alone back in 2006, with this number having increased exponentially in the decade since. This type of family typifies the diversity that exists in contemporary society, while also reaffirming that previous social norms and conventions are increasingly irrelevant in the modern age.
3 Core Financial Strategies for Single Parents
Of course, single-parent families do face significant challenges in terms of financial management, regardless of whether the mother of father has chosen to be single or suffered adversity such as separation or bereavement. .In any instances, single-parents must develop viable financial strategies if they are to provide for their families and cope with their circumstances, so here are three steps to help achieve this: –
1. Reduce Expenditure and Employ more Stringent Money Management Techniques
Let’s start with the basics, as single-parents must strive to reduce their spending and employ stringent money-management techniques when first getting to grips with their new circumstances. This serves two core purposes, as while it initially enables you to consolidate your finances and create additional income for savings or reducing debt, it also establishes a more frugal lifestyle that can underpin long-term financial success.
The key is to focus on regular spending and the reduction of recurring costs, including monthly bills, utilities and groceries. This helps the single parent in question to assume financial responsibility, and implement changes that benefit and educate their children in equal measure.
2. Seek Out Professional Advice When Saving and Building Wealth
Over time, this approach may enable you to build your disposable income levels and financial savings, which in turn can be used to forge greater wealth in the future. Of course, cultivating and implementing long-term fiscal plans can be challenging, so this may require some form of professional advice and guidance if you are to be successful.
The key areas to focus on are wealth planning and the financial implications of separation, particularly when managing the aftermath of a divorce. These elements enable single-parents to make viable plans for the future and their children’s inheritance, while it also helps them to simultaneously manage any financial short-fall that may emerge as a result of separating from a partner.
Such considerations are crucial, particularly if you are not the primary earner in the family and yet have the primary responsibility for your children.
3. Check and Re-evaluate All Financial Documents
The concept of providing for your children is an important one, so it is also crucial that you take the strategic approach of checking and ultimately re-evaluating your financial documents. A viable life insurance policy must be in place, for example, while existing coverage can not be allowed to lapse at any point in time.
You may also want to take out critical insurance coverage as a sole-parent, as this ensures that the cost of your mortgage will be covered in the event of a long-term illness. These are the type of fiscal considerations that will help to safeguard both your finances and your family, while they also showcase your willingness to assume responsibility for your circumstances.