5 Simple Financial Tips for Single Mother

• 12 April 2020 | 1474 Views | By Mint2Save

If you are a single mother, then the difficulty level will increase for you. You will have to fight multiple battles, which includes the one of social apathy. Another concern for a single mother is the financial insecurity, and through this article, we aim at listing some financial tips/ways through which a single mother can overcome or deal with such situations.

Motherhood is that stage of a mother where she cares and nurtures her child. Giving birth to a child, and then raising him is a part of parenthood. Motherhood not just brings joy but also brings challenges in the life of a woman. Along with the pleasure of watching your child grow, there comes a responsibility for securing his/her future. The job of a mother gets even more robust when he/she starts growing and require proper education.

Here are 5 Financial tips for Single Mother which can somehow help in handling the tough situation

1. Financial Literacy

The life of a person is very uncertain, and anytime a sticky situation can arise. To deal with such cases, you need to have sufficient financial knowledge. This knowledge can be armed just not before marriage but after marriage as well. We must know your rights in your husband’s property and assets so that you can cope up with the difficulties that arise.

For example- There was a 40-year-old lady who got separated from her husband ten years ago, and now the biggest concern for her was her daughter’s education. Fortunately, she had the habit of reading nuances of personal finance, and this habit helped her in overcoming this situation. She knew what right she has over her ex-husband’s money and the alimony to be received by her. Also, she tied up with the financial planners to have a better knowledge of the situation and move accordingly.

2. Avail Life Insurance Child plan

Another big concern for a single mother is the education of his/her child. The inflation rate on education is higher than retail inflation, and thus it is vital to have vast reserves for it. When both mother and father are contributing to the education of a child, it becomes a bit easy, but for a single mother, it is tough.

So for her, it is better to avail of a child plan, which will help in securing your child’s financial future. In a child plan, the insured is the parent, and the child is the nominee. If, in any case, anything happens to the parent, the sum assured will be received by the child.

3. Avail Health Insurance as well

Along with the child plan, you should avail health insurance as well for the safety of your child as well for your safety. With health insurance, a lot of pocket expenses are reduced and enable a habit of saving. Health insurance makes sure that the money received as alimony doesn’t get wiped out because of any medical crisis. It helps in protecting your child from financial insecurities in the future.

4. Invest in Securing the Retirement

Although the responsibilities of a single mother get double, due to this, don’t stop investing in securing your retirement because investments are essential to combine money in the long run. It is not essential to make a significant investment. You can start with small investments in equity mutual funds. Most of the mutual funds allow us to start from Rs 500 per month, and this can later be raised to Rs 1000.

An investment of Rs 1000 in a mutual fund for 20 years, giving an annual return of 125 per year, will help to collect an amount around Rs 10 lakh.

With this, you won’t have to depend on your child for money in your retirement and will help you to collect a reasonable amount for your retirement.

5. Invest in Real Estate

There is no doubt that real estate has been suffering from tremendous downfall and is not a lucrative investment avenue. However, in this particular case, real estate should not be restricted to merely an investment.

It shall serve as a place to support single mothers in the later stages of their lives, particularly when they are living away from their children.

Conclusion

When we a single mother, you will have to re-prioritize your needs as you will have to make changes in your goals and go back to the drawing board to make the necessary changes. Although, with time, emotional scars will get healed, it is important that you look after the financial requirements of your family and need to move ahead in your life.

If you are a Single mother you need to empower yourself to be financially and emotionally stable and independent.