Expert Financial Planning for Single Mothers

In years by gone financial planning was a much simpler thing for families to do. When families were more like The Brady Bunch or Ozzie and Harriet, a father who worked and mom for the most part who stayed home. There were kids to take care of and college to save for, along with eventual retirement. Now times have changed and so has the family unit. And with that the strategies have changed as well. This article will look at the single mother and how she must face thosefinancial challenges.

Single Mothers and their Financial Struggles
They may get child support and alimony, but single moms continue to struggle financially every day. With all the responsibilities of raising children and being the bread winner in the home, finances are way down at the bottom of the "to do" lists. For most women it's the last minute scramble when it comes to money.

For many single moms, finances become tight after the divorce. Many have lost their other half of income when their husbands are gone. Money gets tight and single moms are just looking for ways to make ends meet. However, experts agree that even single moms need to look at these financial items as soon as possible.

Financial Priorities for the Single Mother
Life insurance should be a priority to most single parents. Experts say that a term policy of anywhere between 15 and 20 years should be adequate. Find one that lasts until your children are grown. If you are a healthy single mom in her 40's, you could get a 20 year policy in most states for about $700 to $900 a year with no change in premiums. That works out to about $58 to $75 a month. As a single mom you will want to make sure that you have a will that provides for the guardianship of your children as well.

Life Insurance for the Single Mother
Long term disability is an item that most single mom you should be looking into as well. This type of insurance is more like paycheck protection in case you can't work due to illness or injury. Most employers offer it as part of a group plan whose policy is usually very cheap. Most employer policies cover about 60% of your salary, which is a start. You can shop for an individual policy to cover the remainder, but experts have sited that cost is usually about 3% of your annual salary. It would be better to save that money and stash it away into savings.

Financial Savings for the Single Mother
Speaking of savings, single moms usually find it difficult to save money after the bills have all been paid. However, experts urge them to try and find a way. Start with small and soon you will discover money in the bank. Most single moms, that have stable jobs, really need to focus on building for those rainy days. They need to build up their funds and pay down their debts.