Being a parent is hard work. Not only do you have to take care of daily living expenses and your child's needs, but also ensuring ensure that there are financial safety nets in place to protect your families future is crucial.
Being a single parent is even harder. But it doesn't have to be the same with your finances. We have put together a few handy tools that you can take advantage of to protect you and your child.
Tools to protect your future
Thinking ahead is one of the best ways in which you can make your finances work for you. This is even more crucial when it comes to being a single parent, but where do you start?
Have a will in place. Protect your child's future with a will that gives you peace of mind knowing that you have selected guardians who will take care of them and when they can get access to assets that you have been working hard to provide for them. This is often something that is at the bottom of the list for many parents when it comes to financial planning, but not having this in place could leave your child unprotected.
Life cover as a safety net. Life cover is a worthwhile financial safety net that will ensure that your child's financial needs are taken care of, even when you die. The payout can be used to handle education fees, daily living expenses, helping them start life after university, or buying a home.
Invest in education funds. The best time to start preparing for your child's education is when you find out that you are expecting. The second best time is now. There is no denying that school fees tend to be the largest expense that any parent will face when it comes to their child. Therefore, investing in things such as an educational fund can help protect and grow your funds so that you are ready for when the time comes to give them the best education.
Protect your ability to earn an income. While it is important to plan for your child’s future, it is also important that you protect your ability to earn an income. You can do this by having an income protection plan, disability insurance, or even a second stream of income that will protect you from life's unexpected moments.
Tools to invest in yourself
One of the few moments where you need to put yourself first is when it comes to your finances. Without investing in yourself by protecting your ability to earn an income can end up leaving you and your child exposed. Start by looking at ways to:
Upskill where you can. Learning a new skill can be beneficial to your career and also move you into another tax bracket that will give you more wiggle room financially. There are many options of short courses and long courses that are available from reputable institutions to help you upskill.
Financial literacy. Understanding where you are in terms of your finances and how you can best utilise what you have comes down to financial literacy. Start brushing up on your knowledge with our tool for financial literacy for beginners.
Be savvy when it comes to savings. It is probably the number one tip that anyone starting on their financial journey will hear. However, it is also crucial to know how to be a savvy saver. Avoid settling for any savings account. Look at accounts that come with interest rates that grow your money.
Always remember that what works for one person may not work for you. Therefore, speaking to a financial advisor can also help you plan out a sustainable financial plan that will not put a strain on your finances.
