Managing kids is always easier when there are incomes from both parents supporting them. However, not all households have kids who manage to get financial assistance from both their parents. Various events in life can cause parents to separate, leading to one of them getting the sole responsibility to handle the kids.
Financial battles are obviously tougher for a single parent to handle. However, with some careful planning, even single parents can give their kids a good life.
Wise use of alimony
If you have any alimony coming your way, then you should consider saving it solely for your kids. Look at it this way – your monthly income should be sufficient enough to look after your needs, as well as running the household. Whatever extra money you manage to get as alimony, should be saved only for your kids.
Make your money grow
Since there is only one income-bringing source in the household, there is a need to double it. Till the time your kids don’t start earning money, you need to make your current income create more income for you, by way of smart investments. Look at investing in shares, fixed deposits and other schemes, which give timely returns. Plan them as per your children’s age, and when exactly you’d need the money, depending on the year they will be entering college, or the approximate age at which they will get married etc.
Build more assets
Since most of your liquid money and savings will get spent in bringing up your kids, you might wonder, what exactly will you pass on to them? Well, for that very reason, you need to start building on assets. These assets will gain more value with time, and can be passed on easily. They are your backups when life turns extremely bitter. Invest in gold, property etc., as these are your safest bets.
Look for scholarships for your children
Till the time your kids are studying, you can educate them smartly, and hope that they get scholarships from time to time, as per their academic records. These are especially very important during higher education, as they help a parent save quite a lot of money. Plus, knowing family circumstances, kids are bound to be more understanding towards their parent, and will always work hard towards getting these scholarships.
Spend only on what’s necessary
One of the first rules of saving is to cut down on the expenditure. You need to act as a role model to your kids, spending only on what’s necessary. Don’t indulge in wasteful or luxurious expenditures, and teach them the same things. When even one of your kids starts earning and there are more income bringing sources in the house, you can afford to upgrade the quality of your life.
These days, most private banks also offer saving schemes and programs, focused especially on children. You should also try opting for one of those, to be able to systematically save from your current income, and get returns for your child’s future.
Adam Anderson is the author of this guest post. He shares useful ways of planning a family’s personal finance. He also suggests the use of payday loans for time when you are looking to get rid of the financial crunch quickly. (6)