Author: Alicia Rose Hudnett / Source: Wise Bread
Parenting comes with a deep sense of responsibility for your children and a lifetime of having to make difficult decisions. Raising kids in a two-parent household can be stressful enough; being a single parent can be downright overwhelming.
When it comes to managing household finances, being a single parent isn’t necessarily different from any other household with children.
Instead, there just may not be a lot of financial flexibility — so there’s more pressure to get things right early on. Take a breath and work toward reaching these financial markers to give you peace of mind.1. Prepare your estate planning documents
People tend to procrastinate about getting their estate paperwork in place, but it’s a smart idea for everyone to make it a priority. Experiencing a major life event, like having a child, should prompt you to either update your old documents or establish an estate plan.
Unless you’re comfortable leaving your personal and financial decisions up to state officials, it makes sense to sit with an attorney to discuss your wishes should you pass away or become incapacitated and unable to make financial and health decisions for yourself. Since minor children cannot take control of inheritance money or make legal decisions, listing them as direct beneficiaries on your accounts and assuming that will accomplish your goals may not be the case. Every parent should also have guardianship papers in place, especially if they are raising children alone. (See also: Here’s What Happens If You Don’t Leave a Will)
2. Purchase life insurance
Generally, if someone is dependent on your income, you probably need life insurance.
While you’ll want to sit with a financial adviser or life insurance agent to discuss how much insurance you need, some factors to consider are how much it will cost to raise your children and send them to college, as well as to protect certain assets and pay off debt. You’ll also want to consult an attorney or financial professional about properly selecting a policy beneficiary. While there are various types of life insurance, a term life insurance policy can be an affordable and efficient way to protect your family….The post 5 Money Moves Every Single Parent Should Make appeared first on FeedBox.