Financial Planning for Single Parents

Single parents have their hands full with providing for themselves and their children, and they often forget to take care of financial planning. There are 10 million single mothers and 2 million single fathers in the United States, so financial planning for single parents is a prevalent concern. Single parents should consider the following in setting up a plan: 

• Set up a term life insurance policy or purchase universal life insurance to provide for your children financially if anything happens to you. 
• Create a realistic budget and then discuss it with the children.
• Save money so that you have an emergency fund.
• Make an estate plan that indicates what should happen to the children if something happens to you. Talk to the children about the plan and also ensure that a power of attorney and medical directive are in place. 
• Seek advice from a financial planner.

See Karen DeMasters, Planner Offers Advice For Single Parents, Financial Advisor Magazine, Feb. 21, 2012. 

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.