Being a single parent can be particularly scary because your children usually depend solely on you when it comes to finances. If you lose your job, or worse, get very sick and can’t work, there may not be anyone else to fill your shoes or pay your bills. Being prepared for the worst-case scenario is never fun, but planning a will can be especially important when you are a single parent. Deciding who will take care of your children if you can no longer care for them should be a priority. Besides the emergency-related planning that you need to do, there are many ways single parents can manage their finances in an effective manner. Read on to learn five finance tips for single parents, and how to make them work for your family.
1. Plan your will and choose an executor
If you are a single parent (or a parent at all, really) one of the best financial investments you can make is planning a will. If you have family that can take care of your children in an emergency situation, that is great, but if not, you still need to choose someone. You will also need an executor for your estate to make sure that your child is taken care of, that all the necessary fees are paid, and that your child receives the money you left at an appropriate age and time. Make sure you ask the person you plan to list as an executor if they are really up to the job, and if possible, don’t list several executors because that can lead to disaster. If you choose to purchase life insurance or disability insurance, which also seem more important if you are a single parent, you will need someone to manage that for you as well.