Single parents face unique challenges which can be fairly daunting to manage. Being a single parent one has to manage a lot like not only do they act as the sole provider of care and emotional support, but they are also the only financial provider for their children.
When it comes to managing finance, it becomes a tough task but if planned well, it can be managed easily. All the planning has to be made from scratch keeping in mind the daily needs and some amount to be saved for the future.
Banksdirect.in has a few way of managing finances when you are a single parent:
Purchase a life insurance policy:
By purchasing a life insurance cover, you as a parent are ensuring that your child’s future is secure. It is an extremely important tool for a single parent and largely depends upon the family’s financing needs.
Take medical insurance:
Medical needs can catch anyone by surprise and can sometimes be a huge drain on the family cash flow. Thus, it is imperative that single parents buy medical insurance which will take care of medical exigencies and help avoid a negative impact on family cash flows.
Start by Planning your Daily Budget:
Make it a point that you do not buy things that are not in your budget list, once you do it; you will be ruining your savings plan. Never put savings off to the next month as it will tend to become a recurrent thing and your idea of planning will never materialize, thereby adding to your worries.
Make Separate Envelops for Every Need:
Making envelope means putting bills in them so that they can be paid on time and the money is always ready for payment. This prevents unnecessary hassles for a single parent. These envelopes should be stacked at safe places and you should not end up missing the payment due dates.
Invest in your child’s education:
Education of children is a very important goal that needs to be taken care of while primary education is still relatively affordable, secondary and higher education nowadays comes with a high price tag. Single parents need to not only fund current education but invest their money in such a manner that it grows to an amount that can help fund future education as well. So, it would be advisable to invest part of the money in long-term bonds and invest the remaining portion in an equity mutual fund.