Saving Money
Financial Strategies for Single Parents
Be polite but persistent, and ask for advice when you run into roadblocks. Above all, don’t procrastinate. Many of these programs require you apply well in advance.
A list of government programs is available at www.singleparentcentral. com/gov.htm
Planning for the Worst: It is vitally important that all parents, especially single parents who may be the main or sole provider for their children, have adequate life insurance, a will or estate plan, and guardianship documents. This is even more urgent if an ex-spouse represents a physical threat to you (but it’s important nonetheless).
There are a number of ways to inexpensively prepare a will. You may be eligible for a discounted legal plan through your employer, and that may include preparation of a basic will.
You may want to check out software programs that help you prepare your own will. Or you may want to talk with a couple of attorneys locally to find out what they charge. For good basic information on wills and estate plans, visit Nolo.com and type “wills FAQ” into the search field.
While it is also important to appoint a guardian for your minor children if you die, this can be a sticky situation if you are divorced. Generally, unless your ex agrees, you cannot appoint someone besides the child(ren)’s other parent as a guardian. The exception would be if you can show the other parent has legally abandoned your child(ren) or is truly unfit. If that may be the case, talk with your attorney for advice when you prepare your will.
It is also a good idea to get life insurance to at least help cover the cost of caring for your children. Term life insurance may be available at an attractive rate through your employer, or you can use a local agent to help you find an inexpensive policy. If you truly can’t afford it, you may want to talk with the person you’ll appoint as guardian (if this applies) to see if they are able to purchase at least a small policy for their protection. If your insurance proceeds would go to your ex and you are worried about how he or she would handle the money talk with your attorney about appointing a trustee to handle it.
Take Care of Yourself: It may feel selfish to take time for yourself, but you’ll be a better parent if you give yourself a break once in a while. Look for single parent networking clubs in your area. If you can’t find one, start one! In addition to emotional support, single parent clubs can offer referrals to helpful services, clothing and toy swaps for the kids, babysitting coops, and even house sharing arrangements. While it may take some work to get one up and running, the pay off may be well worth it.
For a Free Consultation with a Certified Credit Counselor call 1-800-210-3481 or visit www.consolidatedcredit.org
Additional Resources:
Divorce & Money: How to Make the Best Financial Decisions During Divorce by Attorney Violet Woodhouse, CFP (Nolo.com).
About.com Single Parents forum, at http://singleparents. about.com, offers extensive information and resources.
Making Lemonade, the single parent network at www.makinglemonade.com offers a free email newsletter and advice.
