5 Financial Tips for Single Parents

5 financial tips for parents, especially single parentsAccording to the US Census Bureau, there are almost 10 million single mothers and nearly 2 million single fathers in this country. Samantha Fraelich, Vice-President of financial firm Bernard R. Wolfe & Associates, notes that "single parents often have no other person or income source that they can fall back on, which can create challenges." One of the most important things that single parents can do, according to Fraelich, is to take charge of their finances. "Often times, one parent paid the bills, while the other made the money," she says. "Single parents must do all they can to get educated regarding their finances and develop a plan that can help create a safety net for both them and their children."

I can certainly relate. I have been divorced for nearly three years now, and I am still in the process of really taking charge of my financial life. It's not just single parents or single people that need to worry about their long-term financial strategy, however. Many married couples are struggling with debt and feel like their financial futures are uncertain, as well. Here are 5 things each of us, whether living single or married, with children or without, should start doing as soon as possible in order to gain control over our finances.


Budget
1. Budget
It's a good idea for everyone to budget their money and expenses, but this is especially true for those who are single parents. Create a realistic budget and discuss it openly with the children, so they understand why they can't get money for everything they want.


Save
2. Save
This may seem obvious, but there are a variety of things that single parents need to save for, such as retirement, an emergency fund, and their child's college education. Many parents don't know which goal to save up for first, so after talking with an advisor, automatically saving a small portion each month can come in handy and add up over time.

Related: 9 things all parents should know about saving for college


Insure
3. Insure
It's crucial that single parents have the right insurance policies in place. The two most important types are life insurance, so that there's financial support for the care of the children if the parent dies and disability insurance, in case the parent is unable to work.


Plan
4. Plan
Estate planning is a task that many people want to put off or not think about at all, but it's critical for single parents to create a will detailing exactly what should be done for the children if something happens to them. A power of attorney and medical directive are important, as well.

Related: The #1 secret to a successful budget


Consult
5. Consult
It can be helpful for a single parent to seek out the services of a professional financial planner to help get all their financial plans in order. A planner will be able to help determine what's needed and give you options on how to allocate funds that can help make it happen. They can help create the roadmap that a single-parent striving for financial success can follow.

- By Carolyn Castiglia

For 10 easy ways to save $3,500 in 2012, visit Babble!

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