Personal Finance

National Single Parents day: 5 ways single parents can prepare for the future.

New York Life | March 29, 2018

child on parent's head

The single parent's guide to Life Insurance

The rising cost of living is challenging for many, but single parents can be hit the hardest. In times like these, it’s tempting to just focus on taking things one day at a time –but doing so can actually exacerbate your financial burdens and risk your kids’ future security. That’s why it’s important to put a plan in place to take control of your finances.

Here are five things single parents can do to be better prepared for the future.

1.    Tap in to your support network

Adults living with roommates or significant others get to share the cost of rent or mortgage, heating, food, and a range of other bills. They are also more likely to have ready access to a support network and are less prone to loneliness. But it’s worth remembering that there are people who love and care about you, whether they are your family or your “found family.” Don’t be afraid to lean on these support networks where possible, even if it’s just to have someone to talk with about your plans for the future.  

2.    Take control of your finances

We know you are busy, but it’s worth taking some time to step back and think about your plans for the future. This can help you get some perspective, support your financial well-being, and secure your kids’ future. Consider doing a financial health check to get better control over your finances. This can involve working out your budget, identifying unnecessary expenses, and considering possible tax deductions you may be entitled to. With proper planning, it can be perfectly possible to save money while living on a single income.

3.    Support your kids’ future

As a single parent it's natural to feel a great sense of responsibility for your kids. No one likes to think about it but it’s comforting to know that, should you pass away, you can support your kids’ lifestyles and future education—whether that’s trips to the cinema, afterschool activities, or securing a college fund. If you are not sure where to start, check out our life insurance starter guide

4.   Don’t leave your funeral costs to your kids

Nothing can lessen the grief of losing a parent but having life insurance in place can mean that, whatever the emotional costs, your kids don’t shoulder the financial costs of your passing. Average funeral costs range from $8,000—$12,000 and vary depending on your state and other considerations like service fees, burial or cremation expenses, and even transportation. These aren’t necessarily things a busy single parent thinks about—fortunately we have a handy funeral costs calculator that can help you plan properly.

5.    Secure your peace of mind

Excessive worrying about the future can have a negative impact on your mental health. Knowing that you have a plan in place and your loved ones will be supported financially when you’re gone can put your mind at rest. Having a life insurance policy does just that.

For more advice on which life insurance policy is right for you, arrange to speak to one of our agents.

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Media contact

Kevin Maher
New York Life Insurance Company
(212) 576-7937
Kevin_B_Maher@newyorklife.com